what is bitcoin halving why its so important?
Bitcoin world's first decentralized crypto currency created by a unknown character named Satoshi Nakamoto in the year 2009
Bitcoin is a revolutionary creation that is giving access to the unbanked helping people keep hold of their own money without any third party
Which can't be controlled by anyone but can be developed and usable by anyone on the world
Unlike US dollar or Fiat currency its cant be printed over night. It has a limited supply and that's just 21 million
This made bitcoin so valuable after 10 years of its creation. In 2017 bitcoin pumped to $20,000 per coin and attracted everyone's attention
A new Event is coming this year (2020) on bitcoin block chain network that might make bitcoin more valuable than ever.
It's called the bitcoin halving event and its set to be occur by late april or early may (2020)
What is bitcoin halving?
The bitcoin code was embedded with a limited supply of only 21 million
Bitcoin has a circulating supply of 18.2 million available in the market and rest 3 million will be available by a process called Proof of work ( POW) also known as mining.
New bitcoin can be created by mining blocks of bitcoin blockchain. To mining the block miners can get bitcoin as rewards
Every five years the mining reward for creating a new bitcoin will be halved and the event is known as halving
This event will continue for 2140 untill bitcoin enters its total supply number
Who invented this bitcoin halving?
This event was programmed during the bitcoin creation time by the creator of bitcoin Satoshi Nakamoto
This is a simple mechanism of reducing the total supply of bitcoin over time.
This limits the total number of bitcoin in the market and makes it more valuable
Why it's so special?
Government can print as much money they want and if a person or company has the ability to setup the limit they will inject more money than needed
But its not same with bitcoin as bitcoin is a decentralized crypto currency. No one can control it or neither set a new limit to its supply
Its supply is limited and cant not be printed or increased
As bitcoin cant be controlled there should a hard set of rules how many bitcoin should be created and how many should be released
The halving event works as the manager of bitcoin which was created during bitcoin creation helps to limit add bitcoin in the market
This avoids the risk of price inflection and also keeps the asset safe and valuable.
What will happen with miners?
After the halving event bitcoin mining rewards will be reduced and incentive of miners to work on the network will be reduced too.
This will let many miners leave the bitcoin ecosystem and there will be few miners left or big miners that will mine the rest bitcoin available on the network
What will happen after halving event?
As the total available number of bitcoin will be reduced and the demand raising bitcoin will see a raise in its price.
There will be limited amount bitcoin for mining and will be limited amount of bitcoin available on the network
As demand raises for Bitcoin its sure that we might see a bull run again after the event
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