In the decade since its invention, Bitcoin has taken the financial industry by storm. Stocks of Bitcoin have exceeded all expectations, and more and more people are becoming curious about the idea of cryptocurrency. About seventeen percent of the American adult population have said that they are in some way involved with Bitcoin, or other forms of cryptocurrency, with that number expected to go up in the coming future.
With this expectation in mind, there are still many people who are curious about cryptocurrency yet have no idea how it works, where to start, or even what exactly cryptocurrency is. In this article, we will do a quick overview of what Bitcoin is and how it works, and then take a look at one of the most important practices involved with Bitcoin, Bitcoin Halving.
What Bitcoin is and How Do People Profit from it
Bitcoin is a decentralized, digital asset, also called a cryptocurrency. It is not beholden to any bank or government authority, which means that when making purchases with Bitcoin, users are safe from any bank fees that come with purchases, and when making profits using Bitcoin, sellers are safe from any Government taxations. On top of that, it offers a greater degree of anonymity, as purchases can’t be traced.
There are plenty of ways for people to profit off of Bitcoin, but the most popular and easy way of doing it is through the use of crypto trading sites. These sites are easy to use, as all one needs is a username, password, and email. They are entirely anonymous and offer a number of features that will help prospective investors maximize their profits. the official Bitcoin Profit website place importance on security and online safety, as well as making sure their user base gets the best service possible. The main appeal of trading sites is the low fees they charge, while the registration isn’t attached to additional fees. You only need to make a deposit of at least $250
Now, let’s take a look at the concept of Bitcoin Halving and how it works.
Bitcoin Halving
Bitcoin halving is a process by which the rewards acquired through Bitcoin mining are halved. As more and more blocks are mined, reducing the rewards for mining bitcoins makes sure that the bitcoin amount in circulation will not increase drastically.
How Bitcoin Halving Works
The process is fairly simple. The mining payouts are halved for every 210,000 blocks of bitcoin mined. Mining 210,000 blocks of bitcoin usually take about four years. When bitcoin mining started out, the reward for mining bitcoin was 50 BTC per block. As an increasing number of blocks were mined, by 2012, the number reached 210,000, and the reward was cut by half to 25 BTC.
The next halving occurred in 2016 when the number of mined blocks reached 420,000, and the rewards were again halved. The last halving occurred just last year, as the number of blocks mined reached 630,000, and the reward for mining a block of bitcoin is currently at 6.25 BTC. The next halving is expected to take place in four years, in 2024.
Why Bitcoin Halving Happens
Bitcoin’s supply is fixed at twenty-one million. Once the mark is reached, new units of bitcoin will no longer be produced. The process of bitcoin halving ensures that the bitcoin amount mined with each block will decrease, making bitcoin scarcer, and therefore, more valuable.
The first assumption upon reading about bitcoin halving may be to assume that incentive for mining would decrease. But, bitcoin halving often time leads to immense surges in bitcoin’s value, which provides more incentive for prospective bitcoin miners to finally start out their journey into the world of Bitcoin and mining.
