For investors and traders crypto, you must have heard of a phenomenon called Halving Day Bitcoin. This time, VCGamers will discuss what Bitcoin Halving Day is.
There is a Bitcoin Halving Day phenomenon every four years. Experienced investors and traders must have known about this phenomenon and have their own notes about Halving Day.
The following is a general explanation of the Bitcoin halving, complete with dates, effects, and how the phenomenon works.
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What Is a Bitcoin Halving?
Bitcoin halving is a phenomenon when a reward is obtained from mining blocks Bitcoins split into two every 210K blocks until it reaches a maximum limit of 21M. This phenomenon occurs every four years.
Bitcoin has many important features as the world's first crypto asset. One of these important features is halving, namely the reduction of returns on miner or miner up to half of the initial amount.
A miner or miner is a person or group that adds new blocks to the Blockchain system.
They succeeded in adding the new block by solving various mathematical or cryptographic equations that were quite difficult.
Therefore, Bitcoin miners must have sophisticated crypto mining tools or machines to complete cryptography more quickly.
After successfully mining, the miner will get a reward. Apart from mining, rewards will also be given if the miner successfully verifies Bitcoin transactions.
The bigger and more difficult, the greater the rewards available to miners. Therefore, Halving is a phenomenon that reduces the speed of addition of new coins and reduces the supply of bitcoins in circulation.
Halving Day Bitcoin will deduct rewards for miners every 210k blocks mined by miners.
This happened as one of the prevention of rising Bitcoin inflation rates that might occur.
When Does the Bitcoin Halving Happen?
Withholding rewards or prizes for miners will certainly make miners lose profits. For Bitcoin miners, this halving day is very crucial.
As already discussed, the halving day will occur once every four years. The first halving day occurred on November 28, 2012 and resulted in a block reward of 25 BTC.
After that, the halving day occurred on July 9, 2016, four years later. In 2016, there was a coin reward for miners of 12.5 BTC per coin.
According to Investopedia, The next Halving Day occurred on May 11, 2020 and resulted in a block reward of 6.25 BTC.
Bitcoin Halving Day will happen again in 2024, four years after 2020. According Coinwarz, The next halving day will occur on April 25, 2024.
Also Read: Tips to Become a Bitcoin Miner and Make Money
The Effect of Halving Day on the Price of Bitcoin
There is a considerable impact on the price of BTC after the halving. The price of BTC will increase if the number of released coins decreases.
Halving Day will decrease the number of coins because there will be a reduction in the number of coins in circulation every four years.
Due to a decrease in supply, demand will increase. This is the basis of the Supply and Demand concept and this time the concept can be used in the Cryptocurrency concept.
Also Read: 5 Best Bitcoin Wallets 2022, Secured Assets!
General Consequences and Impacts
In addition, there are impacts that are quite aware of investors and Bitcoin traders. In 2024, the BTC coin supply will release at 1,312,500 BTC.
The reward for miners will be reduced to 3,125 BTC resulting in caution by traders and investors.
When Halving Day occurs, a scheme will occur. First, Halving Day begins. There is increased demand when supply is reduced or less.
After that, the price will increase and BTC inflation will be more under control. This happens because the incentives from miners will still be there even if the rewards are smaller because the value of BTC will increase.
Thus the discussion about Halving Day BTC. Keep up with the latest information about Crypto others only in VC News!
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