Bitcoin Halving 2020: Everything you should know about Bitcoin

Kataryna Kovtun May 13, 2020

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The halving may sound like a word full of drama! Halving is the word which means the upcoming event full of surprises. Here are some points that will help you know more about Bitcoin halving 2020.

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What is Bitcoin halving 2020?

The Bitcoin Halving is a term that describes an event that will happen sometime in May 2020, where the number of coins entering the circulation in the window of every ten minutes will drop to half. From 12.5 to 6.25, the currency entering will drop to half. This event takes place every four years.

The key reason why Bitcoin halving draws all the attention is the amount of supply entering the system will shrink, and the demand for the currency will remain the same. So, as a result, it will drive up the price of the Bitcoins or the cryptocurrency.

Halving explained

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The halving in the Bitcoins is the new coins that enter the circulation as the miners produce the block rewards. All the miners use expensive electronic equipment to mine the blocks. After every 210,000 blocks, or you can say every four years, the number of Bitcoins that the miners can win becomes halved.

The Bitcoin Halving History

The Bitcoin Halving History tells us that the 1st halving occurred in November 2012, it saw a sudden increase from $11 to $1,150 and the second Bitcoin Halving took place in July of 2016. In 2016, the Bitcoins saw an increase of about $650. Now the Bitcoins price is approximately $20,000. So, imagine that the amount that the cryptocurrency will experience.

Why do miners get rewards?

The Bitcoins is almost nothing without the block reward. Two parts make the Bitcoin work. The 1st and the essential element is who owns what; the cryptography enables the private code, this secret code is like a key given to the owner, the private key provides access to the owner to spend the Bitcoins.

The second part is the challenge to control; the Bitcoins works because it controls. People can easily spend their money double by creating wealth from thin air. The block rewards help manage the Bitcoins without the awards; miners can create chaos. They can stop the transaction or double-spend the money.

Understanding block rewards

The block rewards are the new Bitcoins that the miners earn for every block they mine successfully. The blockchain network gives the bonus to available cryptocurrency for the miners.

The size of every Bitcoin Block is 1MB. The size stores the information of the Bitcoins information. To make it more clear, suppose A sends money to B, the block stores this information, whose size is 1MB. The blockchain rewards the miners who use these mining devices to find out the new blocks.

After the discovery of 210,000 blocks, the blockchain halves the block. The halving helps increase the value of the Bitcoins. This event takes place every four years and is known as Bitcoin Halving.

Summing up, the above information will help will gain knowledge about Bitcoins and the Bitcoins’ halving.

Read more about bitcoin here

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