Bitcoin Halving Event:
The cryptocurrency community is gearing up for the upcoming Bitcoin halving event, which is likely to be held this weekend.
- The halving refers to an alteration in the foundational blockchain technology of Bitcoin, aimed at decreasing the pace of generating new bitcoins.
- Since its creation by the pseudonymous figure Satoshi Nakamoto, Bitcoin has been structured to possess a finite supply of 21 million tokens.
- The process of halving will persist until 2041, by which time all Bitcoins will have been mined.
- Blockchain technology involves creating records of information – called ‘blocks’ – which are added to the chain in a process called ‘mining’.
- Miners use computing power to solve complex mathematical puzzles to build the blockchain and earn rewards in the form of new bitcoin.
- The blockchain is designed so that a halving occurs every time 210,000 blocks are added to the chain, roughly every four years.
- At the halving, the amount of bitcoin available as rewards for miners is cut in half.
- This makes mining less profitable and slows the production of new bitcoins.
