Bitcoin halving is undeniably a huge event for the entire crypto comminute and one that has had great consequences, not just on Bitcoin. As the year comes to an end, we can really see the real consequences of the halving that occurred on May 11, 2020. In this article, we take a look at the halving and how it impacted Bitcoin over the course of 2020.
The role that miners have in the blockchain network is a good introduction to Bitcoin in general and how it is different from other cryptocurrencies and fiat currencies. Otherwise, they have an indispensable position because they have to solve computational problems in order to validate a new block of transactions in the network. Thus, their work not only ensures that the blockchain network is safe but also without the miners, it would be impossible for new BTC to enter into circulation.
It goes without saying that it is a tedious job that requires an investment in good equipment, computer hardware, energy, and time. The halving is an event set to happen after 210,000 are mined, and it occurs roughly every four years. The purpose of the halving is to cut the inflation in half, as the reward of miners is also split in half, with each halving. More specifically, the reward was 50 BTC before the first halving in 2012, then it got reduced to 25 BTC, and in 2020, it is 6.25 BTC.
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