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Bitcoin Halving

Bitcoin Halving | Unicoin Digital Capital Exchange

Introduction

A block halving is a process of sinking the rate at which fresh cryptocurrency units are created. Precisely, it denotes the periodical halving occasion that cut the block rewards provided to Bitcoin miners. The date and timing of Bitcoin halving are at 08:41:30 GMT on 12 May 2020. Simply you can understand that after every 210,000 blocks, the Bitcoin block reward will be half of the current rewards for miners. They will be receiving just 50% less BTC for every transaction verification. This event takes place every four years, and the code of halving Bitcoin can be found on the Bitcoin Core Github. Bitcoin halving has many names like Bitcoin havening, reward drop, reward splitting, and reward halving. We will learn more about Bitcoin Halving from the article below.

Significance

This is the fundamental of the cryptocurrency economic model as it ensures the digital coins will be dispensed at a stable rate, following an expected decaying rate. This differentiates the traditional fiat currencies and cryptocurrencies because of the premeasured rate of monetary inflation, whereas the other fiat currency has infinite supply mechanisms.  

There are chances of only 32 times halving events, and after that, there are no chances of further halving. As a result, there will be no more creation of the cryptocurrency since Bitcoin will reach its maximum threshold supply limit.

History

Launch Date: Since the Bitcoin was launched in 2009, the total number of circulation is 18,247,825. The reward had initially started at 50 BTC per block.

1st Halving: 28 November 2012 was the date when the first halving took place, and the miners were getting only 25 BTC for every successful transaction verification.

2nd Halving: The second halving was done on 9 July 2016, and the rewards were reduced to 12.5 BTC.

3rd Halving: The third halving process will be completed on 12 May 2020, and from this event onwards, the miners will be getting only 6.25 BTC per block verification.

Essential Data Sheet

Total BTC in Circulation

18,247,825

Total BTC Produced

21,000,000

% of BTC Mined

86.85%

BTC Market Cap (USD)

167,813,416,182

BTC Generated Each Day

1,937

Approximate Block Time

9.44 Minutes

Current Block Height

619,037

Block Until Halving

10,963

Source: Buy Bitcoin Worldwide

Last Updated: 2 March 2020

Conclusion:

Bitcoin halving is a significant protocol that occurs every 4 years. Due to this procedure, it maintains the deflationary value of Bitcoin, and we know that the fiat currency of any country is centrally controlled by its nature. This impacts the miners as such miners used to get 50% of Bitcoin for their work of mining. Miners were receiving 50 Bitcoin at the start, and now after 11 years, they will be getting only 6.25 BTC. In hindsight, if we calculate for 2024 and 2028, then the miners will receive 3.125 BTC and 1.5625 BTC, respectively.

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