Bitcoin is a software protocol on blockchain technology; bitcoin was released by an utterly anonymous group named Satoshi Nakamoto, the identity of Satoshi Nakamoto is still unknown, and there are no crisp and clear facts regarding the identity of Satoshi Nakamoto. The name of the bitcoin inventor was demonstrated by the white paper of the bitcoin complex. The white paper of bitcoin correspondingly revealed ample facts regarding bitcoin.
The foremost cryptocurrency was generated by a process named bitcoin mining; the major aim of bitcoin mining is to confirm bitcoin transactions and process the information regarding the transaction on the blockchain, and as a reward for confirming bitcoin transaction, these miners avail bitcoin as a block reward.
You might be familiar with the concept of the bitcoin halving event; there are a few frequently asked questions about bitcoin block reward halving, which no one is familiar with if you want to get productive results in your bitcoin expedition, checkout Immediate Edge for more details. Here is everything you should know about bitcoin block reward halving; let’s have a look.
What Is Bitcoin Mining?
Before understanding the basic concept of the bitcoin block reward halving event, you must acknowledge what bitcoin mining refers to. Bitcoin mining is actually the process of adding transaction information to the blockchain by confirming.
The validation progression of a bitcoin transaction is merely accomplished once the bitcoin miners solve the complicated math puzzle rendered by the bitcoin algorithm. You might be wondering that why any need to solve a math puzzle is there.
As per the bitcoin complex, every transaction in an explicit block must be subjected to a unique hashing function. In order to determine the nonce hashing function for every transaction, miners are required to solve a complicated math puzzle. The math puzzle is merely solved once the bitcoin mining rig produces a hash rate equal to the predefined hashing function.
Subsequent to mining a block and verifying a transaction, the bitcoin miners avail the block reward in the form of bitcoin and the transaction cost. The Block reward of bitcoin mining at the instance is 6.25 bitcoin units; the fact might amaze you that the block reward of bitcoin mining at the instance of bitcoin release was 50 bitcoin units. Here is everything you should know about the bitcoin block reward halving event.
What Is Bitcoin Block Reward Halving?
Bitcoin block reward event is basically the route of halving the block reward availed by bitcoin miners subsequent to mining a block. Block reward halving takes place after every sequential four years. However, the timestamp bitcoin block reward halving is calculated on the basis of blocks mined. Once 210000 blocks are mined, the block reward halving event takes place.
Timeline of bitcoin block reward halving
As mentioned ahead, bitcoin block reward halving takes place after every four years. Bitcoin was invented in the year 2008, and subsequent to four years of bitcoin release, the foremost bitcoin block reward halving event took place. As mentioned ahead, the block reward at the instance of the bitcoin release was 50 bitcoin units.
The first block reward was availed by the inventor of bitcoin which is Satoshi Nakamoto after he mined the genesis block or the first-eve block. The first block reward halving occurred on the 28th of November in 2012. The next block reward halving occurred in the year 2016, to be precise, on the 9th of July 2016. The recent block reward halving that occurred on the 11th of May 2020 turned the profitability of bitcoin mining upside down.
How Did The Block Reward Halving Influence The Value Of Bitcoin?
Block reward halving event declined the block reward of bitcoin mining by half. You might be wondering how it affects the price of bitcoin at all. Bitcoin mining block reward is the mere method to supply new bitcoin units in the industry; all the more, bitcoin is tied up with a finite supply. In a nutshell, bitcoin mining block reward halving is inclining the scarcity exponentially by declining the supply of bitcoin.
You might be familiar with the fact that bitcoin units are only 21 million in number, and if the first block reward had sustained, the bitcoin supply would have been locked till now. All the more subsequent to every block reward halving event, bitcoin has achieved a great milestone of value; in a nutshell, the impact of block reward halving on bitcoin is positive.
This is everything you should know about bitcoin block reward halving.