The Bitcoin Halvening is an event that takes place roughly every four years and involves the halving of the mining rewards collected by miners.
The Bitcoin Halvening is an event where mining rewards are cut in half.
The event takes place according to pre-set rules in Bitcoin's code.
Many have suggested it would lead to a surge in price.
The inventor of Bitcoin believed scarcity could create value where there was none before. The Halving also known as the Halvening is due to occur sometime in May 2020. To understand it, we must understand the theory behind Bitcoin’s supply. We explore it more below.
A bit about Bitcoin
Bitcoin was revolutionary in that it could, for the first time, make a digital product scarce. This limited supply is one of the reasons the price of Bitcoin went from being worth nothing 10 years ago to $20,000 at its peak.
The idea of limiting supply is in opposition to how fiat currencies such as the U.S. dollar are used. Traditionally, to create one US dollar, the US government needed to have a certain amount of gold in their reserves. Over time, these rules eroded into the system we have today in which governments can print money as often as they like. Bitcoin, on the other hand, works differently.
What is the Bitcoin Halvening?
Inside the code that Bitcoin is built on, is a rule that says no more than 21 million Bitcoin can ever be produced. New Bitcoin is released through mining as block rewards. Miners do the work of maintaining and securing the Bitcoin ledger and as a reward; the system sends them new Bitcoin. Read More...