The next Bitcoin halving is going to take place when bitcoin mining hits 630,000 blocks. Bitcoin halving occurs every 210,000 blocks which often happen almost every four years and this year makes it the third time bitcoin will be halving. This halving will continue until a maximum supply of 21 million bitcoins has been mined by the network which will hopefully happen in the year 2140.
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As it is known that in order to mine bitcoin, miners need to solve lots of computing mathematical problem so as to create blocks (Proof of work). This mining requires a lot of electrical energy and the reason why a lot of people mine Bitcoin is to earn rewards for their activity which is paid in Bitcoin.
Instead of going into long story, the simple definition of Bitcoin having is the process of dividing miners reward into two.
When Bitcoin started, miners were rewarded 50 BTC as mining reward for every block which is 10 minutes. After the first Bitcoin having which takes place every 210,000 block or approximately 4 years, the reward dropped to 25 BTC per complete block transaction/ mining. At present, the next Bitcoin halving will be taking place when Bitcoin mining hit 630,000 blocks. This halving was designed by Satoshi Nakamoto so as to prevent hyperinflation for Bitcoin.
A lot of people will ask why the halving? Isn’t it unfair to Bitcoin miners? Well, the answer is; Bitcoin halving is needed so we do not have several people with thousands of Bitcoin that has no value. The problem with the Fiat system controlled by the Central banks is that they can create more money which leads to inflation. Will you like to own 1000 Bitcoin valued at $10 currently? I am sure you wouldn’t.
In November 28th 2012, Bitcoin had its first halving when 210,000 blocks was solved. The price of Bitcoin at the point of halving was about $13.4 and the halving didn’t seem to affect the price in a very serious manner. The spike in the price of Bitcoin didn’t happen immediately after the halving, the spike was said to occur due to the Cyprus bailout. The previous halving that occurred in 2016 and the halving didn’t really have an effect on the price of Bitcoin which increased a little from $650 to $675. Although some people will argue that fact. A lot of people believe that a year after a Bitcoin halving, Bitcoin always reaches an all-time high.
When the last block is mined on the Bitcoin network, all miners will not receive miners reward rather they will have to make do of transaction fee only. Will transaction fee be on the high side? That I can’t say but with modification like the lighting Network on the blockchain which more modifications are ongoing, it should not be expensive.
• Will the next Bitcoin halving affect the price of Bitcoin?
• Will it have any effect on miners?
• What will happen when all blocks are mined and miners do not receive miners reward?
Please share your thoughts and opinion in the comment section. I will be expecting to hear from you.
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