The Bitcoin halving just took place at block number 840,000. This event today reduced the mining reward for each block to 3.125 Bitcoins from 6.25 Bitcoins. New Bitcoins are introduced into circulation through these mining rewards.

Another Bitcoin Halving

Halving is one of the most significant events in the cryptocurrency world and occurs approximately every four years, specifically after every 210,000 blocks. It greatly reduces the supply of Bitcoin, thus helping to control inflation by maintaining scarcity.

Bitcoin was created on 3 January 2009. Initially, the reward for mining each block was 50 Bitcoins. The mining reward Mining Reward On a blockchain network, transactions are confirmed by computers called nodes. The processes by which these nodes confirm transaction vary depending on which kind of algorithm the network runs on. On a blockchain network that runs on a Proof-of-Work (PoW) algorithm, nodes solve incredibly complex mathematical equations in a process called “mining.” In exchange for the mining that the nodes do in order to confirm transactions and add them to the main ledger, the nodes receive crypto tokens. These On a blockchain network, transactions are confirmed by computers called nodes. The processes by which these nodes confirm transaction vary depending on which kind of algorithm the network runs on. On a blockchain network that runs on a Proof-of-Work (PoW) algorithm, nodes solve incredibly complex mathematical equations in a process called “mining.” In exchange for the mining that the nodes do in order to confirm transactions and add them to the main ledger, the nodes receive crypto tokens. These Read this Term was first halved on 28 November 2012 in the first halving event. The next halving event took place on 9 July 2016, reducing the mining reward to 12.5 Bitcoins per block, while the third halving on 11 May 2020 reduced it further to 6.25 Bitcoins.

Now, the reward for mining each Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term block is 3.125 Bitcoins.

The Cap of 21 Million Bitcoins

Bitcoin operates on a proof-of-work consensus mechanism, and according to the algorithm, a halving must occur every 210,000 blocks until all 21 million Bitcoins are mined. It is estimated that the next Bitcoin halving will happen in 2028.

To alter this pre-set algorithm, a majority of Bitcoin miners, more than 50 percent, must agree, which is nearly impossible given Bitcoin's decentralized and extensive network.

Currently, around 19 million Bitcoins have already been mined, leaving only 2 million more to be mined.

The halving of Bitcoin supply has a significant impact on the cryptocurrency's price. Historically, it has been one of the major price drivers, with Bitcoin prices surging around the event. The event affects Bitcoin miners' operations, as a reduction in the reward by half without a corresponding significant price increase, affects the cash flow of the mining operations.