BITCOIN HALVING ? what is this?
bitcoin halving

BITCOIN HALVING ? what is this?

By Kavi | Kavya | 24 Apr 2020


halving

Halving in bitcoin takes nearly every after 4 years as per bitcoin algorithm where the purpose is to decrease the flow of bitcoin blocks in current market by reducing block solving miners reward . it was firstly programmed in 2012 where 50% halving took place and bitcoin miners got rewarded 25 BTC /block then in 2016 where 25% halving done where Bitcoin miners got rewarded 12.5 Btc/block  and now in 2020 it expected to be done in next few days to be reduced to 6.25%. where bitcoin miners will be rewarded 6.25 Btc/block there are nothing to be done with total bitcoin supply which are 21,000,000 . this event is automatically happened when total 210,000 bitcoin is circulating in the market.

The fixed date of halving is still unknown but by simple calculation we try to figure out:

210,000 bitcoin in circulation  x 3 times halving (3rd halving is expected to happen soon)

Total 630,000 bitcoin blocks in circulation.

bitcoin halve

 

As per above picture ,only we are approx 2 blocks left to conduct the 3rd halving  and as per our calculation which suppose to be 630,000 bitcoin blocks in circulation.

So, bitcoin miners on average takes 10 minutes to mine 1 block and average  144 blocks are mined everyday. 

in 1 block ,produce 12.5 bitcoin then total in 1 day (144 blocks x 12.5 bitcoin) = 1800  bitcoins are mined.

so if we take daily bitcoin mining, the figure 1800 and calculate times 4 years then almost we reach our figure 262,800(approx)

But bitcoin mining does not go to this system and the fluctuation rate is high of mining of blocks so we can not release exact date of when next bitcoin halving will be occured .


Bitcoin Halving will seriously impact the price in market and for next few days the volatility rate will be high .as per previous record from coinmarket.com , the price almost reach new high whenever halving takes place.

price of bitcoin

 

in 2012 ,28th November bitcoin price increase rapidly from 11.00 USD to approx 900 USD.

in 2016,16th July bitcoin price increased from 600 USD to 2000 USD.

IN 2020,May bitcoin halving is expected to be happen. 


Bitcoin halving is quite challenging for block miners as we know they are core medium to produce bitcoin and aid transactions .Miners are also responsible to keep up the network of bitcoin in simple language we use the word 'HASH-RATE' which is very important to maintain the speed and security to the best level .

If the halving happens then miners may or may not become more energetic to run the network and maintain their budget with limited earning through mining.

if we go in history then we observe that whenever halving takes place then Hash rate of the network is not stable and it takes long time to maintain high hash rate  .

in 2012, the hash rate after halving it fell from 27.61 tHash/s to 19.98 tHash/s .

in 2016,he hash rate after halving it fell from 1.56 EHash/s to 1.40 EHash/s .


Overall, Bitcoin Halving is important to balance the ecosystem of the network also upgrade the value and quality. As we know  , bitcoin is still the king of all cryptocurrency and it will be forever because its decentralised and works on Mining Algorithm. 

Bitcoin now is not competing with other latest cryptocurrency and their blockchain technology in terms of scalability, privacy, speed but still its rank 1 and its all because of its up gradation which happen time to time .

Thank you for reading

 

Resources:

https://cointelegraph.com/news/btc-pre-halving-pump-in-play-as-bitcoin-price-surges-toward-8-000

https://nexo.io/bitcoin-halving-2020

https://www.google.com/search?q=bitcoin+current+block

https://www.buybitcoinworldwide.com/how-many-bitcoins-are-there/

https://blockgeeks.com/guides/bitcoin-halving/


Kavi
Kavi

Chief mentor of 'skill2up.in' and blogging is my passion.


Kavya
Kavya

Hello everyone i am kavya and i love to travel and writing essay, reports and blog.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.