In this article, we delve into the brief history or Introduction of BTC Halving and how it affects the price of BTC. As we know Bitcoin is a decentralised digital currency, often referred to as cryptocurrency, that enables peer-to -peer transactions without any need of intermediaries like the government and banks. The process to participate in Bitcoin’s Blockchain Network as transaction processors and validators by the use of mining hardware or the computers. The miners got transaction fees and rewards. Following the rules and the process of mining is better to understand the exact process of Bitcoin Halving. But the halving affects the rate or value of Bitcoin and increases the rate of Bitcoin.
The very first reward was 50 and these are previous halving dates:
- Nov. 28, 2012, to 25 bitcoins
- July 9, 2016, to 12.5 bitcoins
- May 11, 2020, to 6.25 bitcoins
- April 19, 2024, to 3.125 bitcoins
As we can see the next halving may occur in 2028 and it is the least halving reward with the value of 1.625 BTC.
And In April 2024 month, the circulation of bitcoin around 19.69millions and just leaving around 1.31 million released through miner’s rewards.
A Bitcoin halving event occurs when the reward for mining Bitcoin transactions is cut in half.
Halvings reduce the rate at which new coins are created and thus lower the available amount of new supply. Bitcoin last halved on April 19, 2024, resulting in a block reward of 3.125 BTC.
The final halving is expected to occur in 2140, when the number of bitcoins circulating will reach the theoretical maximum supply of 21 million.
Bitcoin uses a system called proof-of-work (PoW) to validate transaction information. It’s called proof-of-work because solving the cryptographic puzzle takes time and energy, which acts as proof that work was done.
What Is Proof of Work (PoW)?
Proof of work (PoW) describes a consensus mechanism that requires a significant amount of computing effort from a network of devices. The concept was adapted to digital tokens by Hal Finney in 2004 through the idea of “reusable proof of work” using the 160-bit secure hash.
Following its introduction in 2009, Bitcoin became the first widely adopted application of Finney’s PoW idea (Finney was also the recipient of the first bitcoin transaction).
Proof of work forms the basis of many other cryptocurrencies, allowing for secure consensus.
When Bitcoin Halves. What actually happens?
When halving starts it affects the whole Bitcoin present value, It concerns how many tokens are rewarded. Theoretically, It raise the demand for Bitcoin. The next halving will be in 2028 may be and It will increase the demand of Bitcoin again.
Impact of Halving on Bitcoin Price in India
Inflation
The Bitcoin Halving is the manifestation of an increase in the demand of Bitcoin, and all know when demand increases then price of bitcoin will also increase. The Bitcoin Halving is intended to counter any inflationary effects on Bitcoin by lowering the reward amount and maintaining scarcity. However, this inflation “protection” mechanism does not protect BTC users from the inflationary effects of the fiat currency to which it must be converted to be used in an economy.
Demand
Due to the decrease in the number of new BTCs, the demand for BTC will automatically increase day by day. For proof, you can check the previous years and see the increment in the BTC demand and value.
As we know that Satoshi Nakamoto introduced only limited BTCs and we can clearly see why? Because when something is limited the chances of increment in demand rise accordingly.
Investing
BTC was never introduced with the intentions of investment. It is just the method of peer to peer transactions without any third party interference like the banks and government. But with the high demand of BTC in the market the investments among people has been increasing day by day. So, now we can say that people are investing in BTC as well.
The impact of BTC Halving has both sides good and bad because when it happens the rise in demand of BTC increases automatically. The good side always happens whenever the halve starts halving. But the bad thing is that BTC will remain in short supply after every halving.
How to Invest in BTC?
Investing in BTC is very easy just because of BuyUcoin. BuyUcoin provides you an opportunity to buy and sell BTC and other cryptocurrency through their platform by following some easy steps of sign and add amount in your account. First of all, you need to create an account on BuyUcoin and the second step would be to add an amount in your BuyUcoin wallet and use it to buy BTC directly without any intermediary like banks and the government. And as we know that BTC has a bright future so investing in BTC would be fruitful in future for sure!
Conclusion
In this article, we have covered the topic BTC Halving, In which we have seen many things regarding halving that happens after a long time period of four years. The halving starts Nov. 28, 2012, to 25 BTCs and after that it goes with every four year time period gap. BTC halving works with Blockchain because it provides us peer to peer transactions without any interference of any third party in payments. And as we discussed the halving process and how it affects the value of BTC in increasing the value of it. For more articles you can visit our website Crypto Exchange BuyUcoin.