Today marks exactly 11 years since Bitcoin (BTC) launched its first Bitcoin (BTC). halving underwent. This is an important event where the newly released Bitcoins into circulation will be halved. The number of Bitcoin halvings has now reached three and number four is approaching.
Good news! 🎉 Bitvavo is giving its readers free BTC, XRP or another crypto today 🚀
Historic day for Bitcoin
Bitcoin halving is a built-in protocol recorded in the Bitcoin software. Specifically, the halving is available in the Bitcoin Core GitHub repository in the validation.cpp file and states that “the subsidy will be halved every 210,000 blocks, which happens approximately every 4 years.”
“Subsidy” refers to the reward for adding a new block of transactions to the blockchain. Miners use large amounts of computing power to solve a complex mathematical problem. The first miner to do this is allowed to expand the blockchain and collect the block subsidy.
Satoshi Nakamoto, the anonymous founder of Bitcoin, mined the very first transaction block, the so-called “Genesis Block”, on January 3, 2009. At that time, the miners, of which there were only a few at the time, were compensated with 50 BTC. However, on November 28, 2012, the subsidy was reduced to 25 BTC.
It is a historic day as halving is an important concept that transparently reduces inflation and contributes to the scarcity of decentralized currencies.
New BTC halving
In 2016 and 2020, Bitcoin experienced its second and third halvings. Currently, the crypto community is eagerly awaiting the next halving, which will take place sometime in April next year. Although the halving itself is not an exciting event, many share the expectation that it will lead to another major bull market like in the past.
For now, Bitcoin has entered a parabolic uptrend every few months after the halving. However, there have only been three halvings and beyond that, past data does not guarantee the future. After the next halving, miners will earn 3.125 BTC from their work, instead of the current 6.25 BTC.
After next year’s halving, the important event will be on the agenda 34 more times, finally reaching the absolute limit of 21 million Bitcoins in 2140.
Post views: 85