Bitcoin is the first digital currency and with its unique features is the supreme one too. Does the basic question arise Bitcoin comes from? The traditional paper currency is organized and distributed by the government body. But Bitcoin isn’t governed by a single government; it is mined by solving mathematical algorithms. It is an innovative way of creating a currency with a chance for people to get incentives. This process is known as mining. It is not just a factor for creating Bitcoin but also affects the reward price or inventive for a piece of Bitcoin.
What is Halving?
Bitcoin Halving is the reduction in reward value for mining the Bitcoin. The total number of Bitcoin is fixed and is to be mined only after a fixed time. The simple concept involved here is that with the increase in a number of mined Bitcoin results in a reduction of per mined Bitcoin incentive.
Bitcoin Halving History
2019 is almost the last time people to purchase a whole Bitcoin. Later it will be preceded by its portions. The first Bitcoin Halving occurred in 2012 and second in 2016. The initial reward for Bitcoin was 50BTC which reduced to 12.5 BTC after the second halving. The third halving will occur in 2020 reducing the incentive to 6.25 BTC.
What is Next?
Bitcoin miners get a reward as BTC but what will be the scenario once all the Bitcoin are mined? Bitcoin miner also gains benefit from transaction fees other than just Block incentives. Soon as the network of Bitcoin grows the profit from transaction fees will be suiting reward for the miners. It is predefined that Bitcoin Halving will create serious changes in the Bitcoin network and ensure huge gains in its value.
The process involved in Bitcoin transaction involves transfer from one Bitcoin Wallet to other using encryption. The prime goal of this is to create a new transaction to another block. Miners pick these transactions and make a list into a block. Since the miners are the ones involved in the overall procedures of Bitcoin, Bitcoin Halving primarily focuses on them.