What you need to know about the Bitcoin halving
- The Bitcoin halving is expected to be mid-May 2020.
- A halving is a planned reduction in rewards miners receive.
- Halvings happen about once every four years.
- At Bitcoin’s launch in 2009, miners received 50 Bitcoin per block, then in 2012 the first halving reduced it to 25, then 12.5 in 2016, and 6.25 is next.
- The reason for this is to achieve Bitcoins protocol, stating that the goal is for just 21 million coins to ever be in circulation. This is appealing to many as it helps Bitcoin increase in value rather than losing value to inflation.
- To some analysts and observers, halvings can serve as a buy signal suggesting that slower growth could be accompanied by a bump in price.
The world’s first cryptocurrency, Bitcoin is stored and exchanged securely on the internet through a digital ledger known as a blockchain. Bitcoins are divisible into smaller units known as satoshis — each satoshi is worth 0.00000001 bitcoin.