Here is What you Should Know About Bitcoin Halving

Next Bitcoin halving
One of the most popular terms you need to know as a trader is Bitcoin halving. This is a crucial term to know about because it affects various aspects of the crypto industry. Even though it is popular, every crypto trader needs to know what it really means, how it impacts the market, BTC’s price and whether it can benefit the traders somehow. If you are new to the crypto space but are interested in Bitcoin then you need to know what halving is. Apart from learning the basic concept of halving, you should also know when the next Bitcoin halving will occur and what can you do before it does.

Understanding What Is Bitcoin Halving

Halving is a crucial process that basically means that the future supply of the crypto king is reduced in half. This means that there is only a limited number of BTC in circulation and the number does not exceed more than it should, thanks to the halving process. Bitcoin was created by Satoshi Nakamoto and according to him only 21 million BTC should be in circulation at the same time. The halving process reduces the supply of Bitcoin but the demand keeps rising, which increases the value of the flagship crypto asset as well and keeps BTC from inflation.

Impact of Halving on the General Market

As mentioned above, Bitcoin halving is a process where the future supply of BTC is cut in half to maintain its value in the market. Since Bitcoin is the pioneer of the crypto industry, it holds a great dominance over the crypto market. This means that any ups and downs noted for the flagship crypto asset will cause an up or down in the prices of other altcoins. However, if the flagship cryptocurrency is in a bull run, the altcoins are likely to underperform. This is because when Bitcoin is in a bull run, people prefer taking their investment out from altcoins and directing it towards BTC. They can then benefit from this after the price surges once the halving process is done.

How Does Halving Affect Miners?

Bitcoin or any other digital coins are created through a process called mining. This is a process where transaction records are digitally added to the blockchain. The people who create new digital coins are called Bitcoin. Whenever a transaction is validated on the BTC network, the miners are awarded new BTC. When Bitcoin halving occurs, the number of new BTC awarded to the miners is reduced in half. This is how the miners are also impacted when BTC halving occurs.  

Basic Mechanism of Halving

To fully understand what BTC halving is and when the next Bitcoin halving will occur, it is important to understand the basic mechanism. There are two countdowns to keep a track of the next halving process. However, one of the countdowns moves slower or faster than the other because a new block is added to it after every 10 minutes. This is why the block time changes on a daily basis. Generally Bitcoin halving takes place after every four years, but due to the addition of new blocks the ETA can be different. Therefore, a more accurate way of analyzing when the next halving will occur is after every 210,000 blocks.

What is the Timeline of Halving?

If you want to know when the next halving process will occur then you need to know the timeline. Bitcoin was created in 2009 and at the time the block reward was 50 BTC per block. Four years after the creation of the crypto king, the first halving process took place in 2012. It not only reduced the number of BTC in circulation but also reduced the block reward to 25 BTC per block. In 2016, the second halving took place, which further slashed the block reward in half, making it 12.5 BTC per block. Now the most recent and the third halving took place in 2020, after which the block reward is now 6.25 BTC per block. According to this, the next Bitcoin halving is set to take place in 2024, which will cause the block reward to reduce even more, bringing it down to 3.125 BTC per block.

How to Benefit from Halving?

As mentioned above, the price of the flagship crypto asset increases after the halving process is complete. Considering this there is a popular strategy used by the traders to benefit from the process. This is called the buy and hold strategy, according to which, people purchase BTC and then hold it until after Bitcoin halving is done and the price surges. Even though the profits are never guaranteed, this is a good way to start.

hearingrehabs

Leave a Reply

Articles

ver pelicula Guardianes de la Galaxia: Volumen 3 en español

Watch Guardianes de la Galaxia: Volumen 3, the full movie, on 123movies. Guardianes de la Galaxia: Volumen 3 is available to stream in HD, ad-free, free signup required. Ver Guardianes de la Galaxia: Volumen 3 Peliculas en Español online Gratis La forma del agua la Película Completa en Español y Subtitulado Latino HD Sub Español, […]

Read More
Articles

Hypnotic Deutsch Film Stream

Watch Hypnotic, the full movie, on 123movies. Hypnotic is available to stream in HD, ad-free, free signup required. “Hypnotic” Schau jetzt >> Hypnotic Movie Overview: Der Detective Daniel Rourke (Ben Afleck) wird in ein Geheimnis verwickelt, das mit seiner verschwundenen Tochter und einem geheimen Regierungsprogramm zu tun hat, während er eine Reihe von unmöglichen, hochkarätigen […]

Read More
Articles

The Foundation Guide: Unveiling the Secrets to Flawless Complexion

Introduction: Foundation is a makeup staple that forms the base for a flawless complexion. In this comprehensive guide, we will delve into the world of foundations, exploring their purpose, benefits, different types, key ingredients, and tips for choosing and applying the right foundation for your skin. Whether you’re looking to even out your skin tone, […]

Read More
Powered by WordPress | WP Magazine by WP Mag Plus