Cryptocurrency

The halving of Bitcoin came: issuing passes to 6.25 BTC for 4 years

Key facts:

The reward for the block mined in the network has been reduced from 12.5 bitcoins to 6.25.The next halving will occur approximately four years from now, in 2024.The date most longed for 2020 for the ecosystem bitcoiner has just arrived. Just a minute was mined, the block 630.000 of Bitcoin, a milestone that confirms the activation of the third halving of the network. In this way, the rewards that they receive the miners per block confirmed to be reduced to 12.5 bitcoins to 6.25.As expected, Bitcoin reached this height of the block in the first few days of the month of may. According to records of the blockchain, the block was mined at 3:25 of the 11th day; making it the third time that the network reduces its emission of bitcoins since it was launched in the year 2009.The last two blocks of the network of Bitcoin is mined quickly, being processed by a difference of no more than a few seconds. The previous block, the 629.999, was undermined by the group F2pool, while the desired block 630.000 was processed by miners to Antpool.Just seconds of the block 629.999 was undermined by F2Pool, the network recorded the expected block 630.000 that triggered the reduction of reward. Source: Blockchain.comEl halving, as its name suggests that comes from the English Half (half), is a mechanism that is responsible for reducing by half the bitcoins issued by the network every 210,000 blocks. That is to say, approximately every four years, the rewards that they receive the miners each time you confirm a batch of transactions is lessened considerably.The concept of this mechanism is to self-regulate the supply of bitcoin, which is limited to 21 million of cryptocurrencies. Also, while it reduces the emission of bitcoins the asset becomes scarcer and consequently more valuable. Thanks to the halving, the creation of BTC will not be everlasting and is expected to reach its end in the year 2140.

More about the halving

Between the data associated to this event is cyclic, we have that the first halving of the Bitcoin happened in the year 2012, reducing the reward from 50 BTC to 25 bitcoins. Then, four years later, in 2016, he returned to occur the process that stopped the issuing of bitcoins in just 12.5 per block mined. Now, after that in the 2020 re-activate this mechanism, the community bitcoiner should wait until 2024, between march and June, to return to witness a halving.Bitcoin will remain an issue of 6.25 bitcoins per block for the next four years, until again the halving in 2024. Source: mempool.spaceEl event will have an impact especially for the industry of mining Bitcoin, as a reduction in the amount of bitcoins awarded per block mined has a direct impact on the profits of the miners. This could cause the disconnection of mining equipment generations old, which would no longer be profitable under the current conditions of the network. However, due to the current rise in the price of Bitcoin, it seems that this market will not suffer a blow as hard as anticipated, and could even lengthen the useful life of the Antminer S9 of Bitmain.On the other hand, it is also expected that the halving has an indirect impact on the price of bitcoin; a phenomenon that seems already to be happening with the oscillation between USD 8,000 and USD 10,000. Although experts don’t take it for granted that the halving will trigger a bullish rally in Bitcoin, if you consider that it could give a positive boost to its value in the medium or long term.The current economic crisis by the pandemic coronavirus seems to also be affecting the market of cryptocurrencies, which is an element that should also be taken into account for this halving.

About the author

Caroline W.

Caroline is passionate about learning languages, cultures and the Internet. She has years of experience working at international online advertising projects. Growing interested in Bitcoin and cryptocurrencies in late 2018, she joined CurrencyMarket24 as a writer.

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