If you have been an ardent follower of the cryptocurrency market for the past decade, then you are probably aware of what Bitcoin “Halvening” means. Isn’t it? After every 4 years on an average, the rewards which are granted to the Bitcoin miners are cut in half. But why is it so? Let us have a quick look at what Bitcoin “halvening” is and when is it coming next. Have you check Binaryx? It is one of the top cryptocurrency exchange platform where you can trade and invest in more than 40+ currencies.
What is Bitcoin “Halvening”?
When Satoshi Nakamoto first setup the Bitcoin transaction rules and regulations back in 2008, he clearly stated two important things – first, the supply and mining of Bitcoin must be limited to 21 million. Second, the amount of Bitcoins generated each block is set to cut by 50% for every 210,000 blocks. Hence, the Father of crypto trading has himself laid down these rules in order to maintain a balance in the market.
How long it takes for “Halvening”?
It is seen that on an a average, 6 blocks are found within an hour and since halvening happens only after 210,000 blocks have been generated, it takes more or less 4 years for the halvening to happen. The mining reward during the halvening gets reduced by 50%. For instance, if a miner received 12 Bitcoins for solving a single block, once the halvening is initiated, the miner will receive 6 Bitcoins and so on.
Why does the halvening happens?
The most important reason because of which this event occurs is to maintain a balance in the crypto market. If there is no limit to the number of Bitcoins that can be mined there will be highly equity in the market and the entire crypto industry will come crashing down. Bitcoins, in that case will have a very little value.
In 2020, the Bitcoin halvening event is going to occur once again, as it had happened previously in 2016. To keep your assets safe and trade in the most sophisticated manner, make sure to visit https://www.binaryx.com/ and check their trading platform. They offer some fantastic features which also includes social trading and supports a number of cryptocurrencies like Bitcoin, Litecoin, Ethereum, EOS, XRP, Tether, Bitcoin Cash. Isn’t that great?