Bitcoin Halving Preview – Why is it Worth Paying Attention?
Bitcoin Halving – What Is It and Why Is It So Important?
Halving in the Bitcoin network is an event that occurs every four years, involving a reduction of the block reward by half. The next halving will take place in the second half of April 2020, and the exact timing is difficult to predict.
What Are the Consequences of Reducing the Block Reward?
After the halving, the block reward for mining a Bitcoin block will decrease from the current 12.5 BTC to 6.25 BTC. This means that the supply of new Bitcoins in the market will be significantly reduced, which could impact the cryptocurrency’s price.
Why Are Halvings Important for the Cryptocurrency Market?
Halvings are considered a significant phenomenon that can act as a catalyst for Bitcoin price growth. In the long term, they serve as the foundation for the four-year market cycles of this cryptocurrency.
Satoshi Nakamoto and the Bitcoin Supply
Satoshi Nakamoto, the mysterious figure behind the creation of Bitcoin, is responsible for halving the Bitcoin supply by half every 210,000 blocks. The network protocol ensures block additions approximately every 10 minutes, leading to halvings occurring every four years.
Volatility in Bitcoin Mining
The increase in network computational difficulty affects the speed of block discovery, resulting in volatility in the production of new Bitcoins. Miners, the individuals responsible for cryptocurrency mining, face growing competition and complex computations.
Due to the random nature of Bitcoin mining, it is impossible to precisely predict the timing of the next halving. Nevertheless, the reduction in block reward directly impacts the cryptocurrency market and attracts attention from investors worldwide.
