By The release of Bitcoins is strictly limited – 21 million coins can be mined worldwide. So that they do not depreciate, halvings are included in the program of this cryptocurrency. Miners, those who mine Bitcoins, receive remuneration for their work. After every 210 thousand blocks mined, their reward is halved.
You need to trade ETH for BTC and optimize costs. Halving is a halving of the reward to miners for mining Bitcoins. It is also essential to understand what is BTC.
Halving Features
Miners use powerful hardware that solves cryptographic puzzles. For example, ASIC. This is necessary to verify and confirm transactions in the Blockchain network of this cryptocurrency. For each solved puzzle, miners are paid as new Bitcoins.
If you want to trade ETH for BTC, you should learn when the halving happens:
- The first Bitcoin halving took place in November 2012. Then the reward for creating a block decreased from 50 to 25 Bitcoins.
- The second happened in July 2016 – the reward was reduced to 12.5 Bitcoins.
- The last and third halving took place on May 11, 2020. Now the reward is 6.25 Bitcoins.
As soon as 21 million Bitcoins are created, their production will stop. More than 90% of Bitcoins have already been mined. But they will stop drilling around 2140 because, with each halving, their production slows down, which affects cryptocurrency trading.
Bitcoin price change
When this happens, miners will not receive a reward for mining cryptocurrency, but a commission for confirming transactions. That is, they will be auditors who will ensure that the same Bitcoin is used only once.
With each halving, the price of Bitcoin increases. Here is how the prices of coins have changed, which will help invest in crypto:
- When the first halving took place in November 2012, the price of Bitcoin had increased 100 times over the past year to about $11.
- During the second halving in July 2016, the price of Bitcoin fluctuated from $500 to $1,000 for several months, and by December 2017, it had risen to about $20,000.
- By the third halving in May 2020, Bitcoin was worth approximately $9,000. By the end of the year, it had risen to roughly $30,000.
The next, fourth, halving is expected in 2024. When this happens, miners will receive 3.125 Bitcoins for each block mined. Halving is a reduction in rewards to miners for mining Bitcoins. This happens every time 210,000 blocks are added to the Blockchain. For example, from the very beginning, miners received 50 Bitcoins for each block. Now, after the third halving, the reward is 6.25 Bitcoins.
Bitcoin’s Halving is needed to contain the supply of the first cryptocurrency and protect it from depreciation. The more expensive it is to mine new Bitcoins, the less they appear, which means their value will be higher.
