information About Bitcoin Halving

Bitcoin Halving is sometimes also referred to as Bitcoin Halvening.

Some people are not aware of this fact, but eventually the supply of Bitcoin will run out.

With gold we can never really tell when the worlds supply will be fully mined, but with Bitcoin we know that this will be when the planned supply of 21 million coins has been mined, which will be around 2040.

So to help regulate supply and maintain value, an event called Bitcoin halving occurs on a 4 yearly basis.

Bitcoin Halving

Based on the average of 1 block being completed every 10 minutes, the next bitcoin halving will occur around the middle of May 2024. The Miners block reward will then fall from 6.25 to 3.125 bitcoins.

So what is Bitcoin halving? 

This is whereby the Bitcoin Miners reward for revealing new blocks on the blockchain is literally halved for verifying the Bitcoin transactions. These events are actually scheduled to occur exactly every 210,000 blocks, so it it not always possible to be exact in terms of the actual date, but it does equate to roughly every four years for the Bitcoin currency.

These halving events are hugely important for anyone involved in Bitcoin trading. Supply of the BTC is at this time literally halved and if coupled with an increased demand, depending on that level of demand, we can end up with a seriously large increase in Bitcoin value.

This can never be guaranteed however and there can be  an equally serious decrease. The truth is, nobody can really predict the events of any Bitcoin halvening event (or indeed any value of BTC ever). Do not let anyone tell you otherwise.

Some traders look forward to the 4 yearly BTC halving event. They aim to make money from the halving by studying the price movements leading up to the event and also after it.

Spread betting becomes very popular, especially around this time. Sometimes there is no immediate change to the Bitcoin rate after a halvening event, but this can then dramatically follow at some point afterwards, surrounding the event.

Perhaps you will consider your own Bitcoin collection during this time.

Do the miners mind the halving since they are getting a 50% pay cut? 

In the past, the Bitcoin Mining industry has always carried on regardless, but surely there must come a 4 yearly halving event, which may just be the last straw. Bitcoin mining already causes a huge drain on resources, especially electricity.

If not for Green purposes, then there will be many miners calling it a day, purely for sheer cost reasons. To put very simply, the cost to mine the coins may very well this time outweigh the value of the coins.

Read more about Crypto Mining Energy use: Ethereum - Proof of Work changing to Proof of Stake .....


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