The next bitcoin halving is inevitably coming!
What is bitcoin halving, how does bitcoin halving work, and what are the effects of bitcoin halving?
If you're interested in bitcoin mining or trading bitcoin for profit, this article is perfect for you.
What is Bitcoin Halving and What is the Purpose of It?
Bitcoin halving is a process of bitcoin mining where the reward miners receive for finding bitcoin blocks will be cut in half.
Bitcoin has an algorithm that controls how many bitcoin are released into the network every day, and this number is called the difficulty rate.
The bitcoin halving happens when it reaches a certain block height, which triggers an event to decrease the bitcoin block rewards.
The bitcoin halving is a way to limit bitcoin inflation.
This process has been done in the past, and it's designed with two purposes:
- To increase bitcoin value by making them harder to mine on your own because there will be less bitcoin released into the market
- To make mining more competitive as miners have to compete for fewer bitcoin
Who Created Bitcoin Halving?
The bitcoin halving event was created by bitcoin's pseudonymous creator, Satoshi Nakamoto.
Nakamoto is a computer engineer who released bitcoin to the world in 2009.
He also outlined bitcoin's software with its algorithm that controls how many bitcoin are mined every day and the effects of bitcoin halving.
He did not reveal his identity in bitcoin's early days, and he is still unknown to this day.
Some say that Satoshi Nakamoto could also be a group of bitcoin programmers or even a collective of bitcoin miners.
Another theory is that Satoshi Nakamoto could be an individual who created bitcoin as an experiment to see if it was possible for a digital currency to control supply and demand through its algorithm granting block rewards.
When Will Bitcoin Halving Happen Again?
The next bitcoin halving is set to happen again in 2024. It's important to note that this bitcoin halving will happen roughly every four years.
The first bitcoin halving happened on November 28, 2012, and the bitcoin block rewards were cut in half from 50 bitcoin to 25 bitcoin per bitcoin block mined.
The first bitcoin halving increased the price of bitcoin from $12 to nearly $1,200 within a year.
The 2024 halving could have a similar effect on bitcoin value as the previous bitcoin halvings did.
How Will Bitcoin Halving Affect the Future of Bitcoin?
Mining bitcoin is an expensive process, and bitcoin miners will have to adjust to the new bitcoin halving in 2024.
Since there are fewer bitcoin being mined as a result of this event, it means that each bitcoin block will be less valuable and more costly to mine.
This process also affects bitcoin traders because they may now have to pay higher prices for bitcoin since the supply is more and more likely to be smaller than the demand.
Will bitcoin halving make mining unprofitable?
It's possible, but bitcoin halving also tends to increase the price of bitcoin. That means bitcoin miners have more incentive to mine than before, but they may not earn as much bitcoin for each bitcoin block found.
The bitcoin halving in 2024 will be interesting because it's the first time that bitcoin has had a decreasing rate of inflation since bitcoin was created.
It'll be fascinating to see what kind of effect this bitcoin halving has on bitcoin miners and bitcoin traders.
When Will Bitcoin Become Mined Out Completely?
Currently, there are approximately 18.78 million bitcoin mined and there can only ever exist 21 million bitcoin which means that bitcoin miners will eventually mine all of the bitcoin out.
This is not likely to happen anytime soon, though. It's been predicted that bitcoin will be mined out completely by the year 2140.
You'll notice that only a little over 2.2 million bitcoin are still up for grabs via mining but it will take over 100 years to do it.
This is the effect of bitcoin halving.
Bitcoin halving is a process where the number of bitcoins released per block are cut in half.
There will be another bitcoin halving, but when that happens and what it means for the future of Bitcoin remains to be seen.
Will you buy some bitcoin before or after this next bitcoin halving?