Bitcoin miners are certainly no stranger to the term bitcoin halving, right? This term is also often known as halvaning and is one of the terms that must be understood by bitcoin miners.
What exactly does the bitcoin halving mean and what effect does it have for miners? You can find the full explanation here.
What is Bitcoin Halving?
Talking about bitcoin is inseparable from blockchain technology. This technology is the basic technology in the creation of bitcoin.
There are many ways to get bitcoin, one of them is by mining. You can do bitcoin mining by solving math problems and tasks that are quite difficult.
This workaround will generate 64 random characters called a hash. Those of you who want to mine bitcoins must solve this problem, when this problem is solved a block will be formed and you as a miner will get bitcoin.
At the start of the bitcoin release, every miner who successfully solves this problem will get a reward of 50 BTC. But the originator of blockchain technology has designed bitcoin to only be produced as many as 21 million with gradual production.
Satoshi Nakamoto as the inventor of bitcoin limits the speed of bitcoin production by halving. Bitcoin halving is cutting the miner’s reward in half.
This cut will occur after the production of bitcoin to 210K. To achieve this production figure bitcoin takes approximately 4 years. So every 4 years the bitcoin miner reward will be cut in half.
The halving will completely stop when 21 million blocks or bitcoins have been mined.
Simply put, this bitcoin halving is cutting the reward that miners receive in half.
When is the Bitcoin Halving Time and Schedule?
As already explained, the bitcoin halving occurs when bitcoin mining has reached 210 thousand. So every bitcoin reaches this mining result then the miner reward will be cut in half. To reach 210 thousand takes approximately 4 years.
So the bitcoin halving will happen once every 4 years. This time cannot change because it is certain and has been systemized.
Since the beginning of the emergence of bitcoin until now bitcoin has halved three times, namely:
Bitcoin experienced a halving for the first time in 2012. Miners who initially received a reward of 50 BTC since 2012 only received a half reward of 25 BTC.
Bitcoin halving the second occurred in 2016. Reward miners since the year fell from 25 to 12.5 BTC BTC.
Bitcoin halving 2020 or most recently occurred on May 11, 2020. Enmines only get 6.25 BTC for each mining product.
Because this bitcoin halving must happen every year you can calculate when it will happen again. Next bitcoin halving date is in 2024. This year miners will only get half reward of 12.5 which is 6.25.
This will continue until the bitcoins have been issued or. The last bitcoin halving is when bitcoin reaches the amount of 21 million, at that time the miners will not get the reward back. That’s when bitcoin mining is complete.
Once mining is complete then the only way to get it is to buy it or trade bitcoins.
Why and What are the Effects of the Bitcoin Halving?
You must be wondering why there should be a bitcoin halving and what effects will occur after bitcoin halving.
Bitcoin halving is a way to suppress bitcoin inflation so that bitcoin prices remain stable and even tend to rise. After the halving occurs, the price of bitcoin usually decreases but after 1 year the price skyrockets very high.
You need to know the price of bitcoin after the first halving in 2012 decreased by only $ 12. The price of bitcoin immediately skyrocketed to $1,000 one year later.
This also happened when the second halving occurred, the price of bitcoin had dropped to $670 per coin. A year later in July 2017 the bitcoin price skyrocketed to $2,550 and continued to climb to $19,700.
At the 2020 halving, the price of bitcoin had dropped to $ 8,787 per coin but one month later it rose to $ 48,000. Even the price of bitcoin skyrocketed to as much as $5,000 per coin. Bitcoin price prediction will continue to rise after the next halving period.
Maybe you are wondering why this can happen?
The bitcoin boom occurred because of its increasingly sought after existence. After the halving occurs, there will be more news about bitcoin and higher demand.
What Should Miners Do With The Bitcoin Halving?
The bitcoin price explosion after experiencing the halving is indeed very amazing. Even though miners get less rewards , the selling price of bitcoins will be higher. Of course this will be very daily profit for miners because they can sell it at a high price.
If you are a miner or a bitcoin trader you should be aware of this important event. The moment of the halving, which is certain to occur every 4 years, should be utilized as well as possible.
When a halving occurs, those of you who choose to trade bitcoin need to buy bitcoin and then save it for you to invest. You can sell your bitcoins once the price goes up again.
The existence of this bitcoin halving is actually also one way to suppress the inflation rate of this bitcoin. Reducing this miner reward in half could have a huge impact on the bitcoin price.
Because this bitcoin halving is sure to happen and you have to know the schedule. Prepare your bitcoin mining and trading strategy so that the results can be maximized.