Bitcoin Halving-What You Need to Know?
Bitcoins are some of the most sought-after digital currencies in the world of cryptocurrencies today. However, not many people are aware of the concept of Bitcoin halving, an event that takes place after every four years. In this article, learn more about the process of Bitcoin Halving.
What is Bitcoin Halving?
Fresh bitcoins are circulated in the form of block rewards and are produced by crypto miners who utilize costly electronic systems to mine or earn them. As a result, every 210,000 crypto blocks, or nearly every 4 years, the number of bitcoins that miners stand to win or earn is halved. It must be noted that in the year 2009, the halving system began with 50 coins, which were mined after every ten minutes. After two bitcoin halvings, around 12.5 bitcoins are being dispensed with a gap of every ten minutes. This process, however, will come to an end after 21 million bitcoins have been successfully dispensed, which would happen by 2140.
Thus, the process of bitcoin halving is essentially all about diving the rewards that has been generated per block for maintaining the supply of Bitcoins (i.e. not exceeding 21 million). Block rewards function as the primary engine of mining and thus the primary power behind operating of network. The next halving process will take place in the month of May in 2020 and will result in the reduction of reward to around 6.25 coins.
It is important to understand that halving of bitcoins is a prominent aspect of bitcoin and other cryptocurrencies, since it ensures emission control and enables bitcoin maintenance without the need for any central authority.