Still don't understand what the #bitcoinhalving or the #BitcoinHalvening all about? We got you covered. In no time, you'll be explaining it to your friends. Let's go
Let's start with #Bitcoin mechanics: #bitcoinmining is like any other job. You maintain a passbook(validate transactions) and get paid, right there and then, in this virtual #currency called #Bitcoin. The job is kinda survival-of-the-fittest, but of computing power.
Every 10 minutes, the job asks u to turn the page in the #passbook(technically: create new block) Every miner has a copy of the passbook (like a shared #Google Sheet) and the 1st one to turn the page wins #BTC #Miners also earn on successfully verifying #transactions.
#Halving is the literal halving of the #BTC reward that you were getting for turning the page in our passbook analogy. This halving happens on every 210,000th page (#block). #BitcoinHalving2020 will happen on Block 630,000. Check the #countdown here: https://blockchain.com/explorer
For context, upto Block 210,000, the reward was 50 #BTC. Between 210,001 - 420,000 blocks, the reward had halvened to 25 #BTC. From 420,001 - 630,000 blocks, the reward was 12.5 #BTC. From 630,001 - 840,000 blocks, the reward will be 6.25 #BTC. <-- This is where we're headed
What does #halvening achieve, you ask? Depending on who you ask, the answer can change but there's 1 common theme The #Reward serves as an #incentivisation for mining. It is expected that by the 6th or 7th mining (or earlier), there would be no need to incentivise mining
Why're folks going crazy if it's #programmatic and not a surprise? umm... we also celebrate a #PizzaDay to celebrate the day when sm1 paid sm1 10,000 #BTC to buy 2 pizzas Halving excites us because it is a huge #milestone for #hodlers and a bullish price indicator for #traders
