One of the most anticipated events in the cryptocurrency industry for 2020 is the third Bitcoin halving, sometimes called a “halvening” by the bitcoin and cryptocurrency community. It will occur on May 12.
Let’s find out what is the Bitcoin halving, and why is it so important for the entire crypto community.
What is a bitcoin block halving?
It is a process of reducing the rate at which new cryptocurrency units are generated.
Bitcoins are generated whenever a “block” of transactions are solved by miners and implemented to the Bitcoin blockchain. The process occurs every 10 minutes. So, every 10 minutes new bitcoins are made.
This is an expensive process which requires special hardware and loads of electricity. Miners are rewarded with new bitcoins in return.
On May 12, 2020, the total number of bitcoin mined by miners per block will slide down from 12.5 to 6.25 BTC. When bitcoin first appeared, the block reward was 50 BTC.
This halving will reduce the amount of bitcoin rewarded to miners, as a result, it will increase the coin’s scarcity.
We should expect 32 bitcoin halving events only, and after them no more BTC will be created.
When was the last halving of Bitcoin?
The last bitcoin halving happened in July 2016, just 6 months before bitcoin’s price spike.
Does it affect BTC price?
The block reward halving may have a long-term positive effect. Just imagine: if fewer bitcoins are being generated, the newly increased scarcity automatically makes them more valuable. But this doesn’t happen right away.
So, if you believe that btc can boost after the 2020 halving, get ready for it with Quantum.uk. You can buy bitcoins here and HODL BTC until the price rocket. Sign up with Quantum.uk and enjoy everything we have to offer.
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