RE: LEARN AND EARN Challenge - "What is Bitcoin Halving ?"
@hardaeborla, that is a great initiative, so here is my view:
What is halving?
Satoshi Nakamoto programmed that bitcoins will be released into circulation gradually with each block mined. The final amount is a 21 million BTC.
Bitcoin transactions are grouped into blocks that follow each other to form a blockchain. Mining of one block takes about 10 minutes in the Bitcoin network, and at the beginning of mining, i.e. in 2009, the miner received as a reward for mined block as much as 50 BTC.
This amount is always halved after 210,000 mined blocks, which occurs approximately once every 4 years. Last halving happened on May 11th 2020. From that time, miners receive 6,25 BTC as a reward for each mined block. As it was the third halving, the block with a halved reward was a block no. 630 000.
To that date, approximately 87% of all bitcoins have already been mined so only 13 more % are about to be mined in the future.
Inflation
The annual inflation rate or the number of newly mined coins dropped from 3,65% to approx. 1.8%. In the next 4 years, after the 4rd halving, the inflation rate will drop to 0,9% and so it will continue.
The price impacts
Halving is a predictable fundament written in the source code of Bitcoin. Miners put this event to the price of Bitcoin in a few months advance. As the result of the Bitcoin halving, the price tends to skyrocket approx. one year after this event. I expect to happen the same. Please, fasten your seat belts! I would say that the next ATH will be reached within the next 12 months.
This post has been rewarded by the Steem Community Curation Project. #communitycuration07
Wow! 3.65 - 1.8% seems to be a very high drop and the next will also drop to 0.9% as you've claimed... Wow! That's really much though.
I also love the graph or BTC curve chart you included in your write up and this really explained BTC event happening with respect to the supply and inflation rate.
Dear @ritxi
Brilliant piece of work buddy. We've upvoted already it with PH and steemcurator06 accounts.
I would like to take an opportunity and share with you post by @ qsyal, related to Halving:
After more 10 days ..Should I get optimistic or pessimistic about the Halving?
This user just joined our community recently (after long break) and I'm helping him to get some valuable traffic. Hopefully you will find this article worth checking out :)
Enjoy your sunday,
Yours, Piotr
Thanx, I will take a closer look on his/her work.