Bitcoin halving refers to an event when the pace at which new units of the world's largest cryptocurrency entering circulation is cut in half.
It's part of an overall strategy to keep the maximum supply of bitcoins fixed, in contrast with fiat currencies like the US dollar, which have essentially unlimited supplies and lose value when governments print too much of it.
How does Bitcoin halving work?
To understand how Bitcoin halving works, first you need to know the basics of how the cryptocurrency is created.
Bitcoins come into existence by way of a decentralized system, in which people known as miners use high-powered computer systems to solve cryptographic puzzles in order to verify and validate transactions on the Bitcoin ledger, known as the blockchain. In return, they receive payment in the form of newly created bitcoins. Bitcoin mining is a competition of sorts. Miners are essentially racing to be first to add new blocks to the blockchain. For each block added, they receive a certain number of new bitcoins as a reward. The originator of Bitcoin programmed the block reward to be cut in half at regular intervals.
Continue reading: https://www.businessinsider.com/bitcoin-halving
It's part of an overall strategy to keep the maximum supply of bitcoins fixed, in contrast with fiat currencies like the US dollar, which have essentially unlimited supplies and lose value when governments print too much of it.
How does Bitcoin halving work?
To understand how Bitcoin halving works, first you need to know the basics of how the cryptocurrency is created.
Bitcoins come into existence by way of a decentralized system, in which people known as miners use high-powered computer systems to solve cryptographic puzzles in order to verify and validate transactions on the Bitcoin ledger, known as the blockchain. In return, they receive payment in the form of newly created bitcoins. Bitcoin mining is a competition of sorts. Miners are essentially racing to be first to add new blocks to the blockchain. For each block added, they receive a certain number of new bitcoins as a reward. The originator of Bitcoin programmed the block reward to be cut in half at regular intervals.
Continue reading: https://www.businessinsider.com/bitcoin-halving
