Hello everyone!!! Today I'll be sharing to us how bitcoin halving do happen and when it normally happen
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As we all know bitcoin is the first crypto currency we had and uptil date bitcoin is the most powerful and expensive coin in the market, all others crypto value will be determine by how market is, and whatever happen to bitcoin in the market, affect every other crypto currency, Moreso, let's talk about bitcoin halving, what happen when bitcoin halve, what happen after the last bitcoin halve, bitcoin halving effect on the price and lastly is bitcoin halving good or bad
Bitcoin halving is an event that happens approximately every four years, where the reward for mining new Bitcoin blocks is halved, meaning miners receive 50% less Bitcoin for verifying transactions. The halving is a part of the Bitcoin monetary policy, encoded in its algorithm, to control the supply of Bitcoin and mimic the scarcity and deflationary characteristics of precious metals like gold
When Bitcoin was first created, the reward for mining a block was 50 BTC. This reward halves every 210,000 blocks mined, which takes about four years. The first halving occurred in 2012, reducing the reward to 25 BTC, then again in 2016 to 12.5 BTC, and most recently in 2020 to 6.25 BTC
The halving event is significant because it reduces the rate at which new bitcoins are generated and thus the total supply of bitcoins in circulation. This scarcity is thought to contribute to Bitcoin's price appreciation over time. As the reward decreases, it can also affect the mining community, potentially leading to a smaller number
*BITCOIN HALVING EFFECT
Bitcoin halving events have historically been associated with price increases. This is because the reduced rate of new Bitcoin creation can cause scarcity, potentially driving up demand and, as a result, the price. However, it is important to remember that market dynamics are influenced by a variety of factors, and price movements can be complicated.let's take a look at the past three halving events shows that a significant price rise usually begins after six to twelve months. Also, before a halving event, the price of Bitcoin tends to rise as investors anticipate a price rally post-halving.
WHAT HAPPEN AFTER THE LAST BITCOIN HALVING
Bitcoin halvings will cease when Bitcoin reaches its maximum supply of 21 million BTC. At this point, miners will no longer receive block rewards in the form of newly minted Bitcoin.Instead, miners will be incentivised to continue validating transactions through the reward of transaction fees paid by users. Given how big the Bitcoin network is poised to be at that point, on-chain transaction fees will be high, rewarding miners for continuing to support the network.
IS BITCOIN HALVING GOOD OR BAD
Halving is one of the core economics attracting investors to Bitcoin. This is because, unlike fiat currencies that are bound to be inflationary due to their ever-increasing supply, Bitcoin is capped at a maximum supply, and halvings reduce its inflation rate.The Bitcoin halving is considered a good economic model as it creates disinflationary pressure on the digital currency, helping it to increase in value over time (provided demand for Bitcoin continues to grow).However, Bitcoin has been subject to several criticisms because its design of halving and supply limit encourages users to hold (or even hoard) their tokens without spending in the hopes of a significant price increase. This culture, also known as HODLing, is why some consider Bitcoin an investment and not a transactional currency.
In conclusion, whether Bitcoin's halving is seen as positive or negative depends on individual perspectives and the broader economic and market context. It is a fundamental part of Bitcoin's design and monetary policy, and its implications can vary for different stakeholders, including miners, investors, and users. Some view it as a strength that sets Bitcoin apart, while others may see potential drawbacks.
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