What is a block halving and Why are halvings significant?

What is a block halving?

A block halving is a process that reduces the rate at which new cryptocurrency units are generated, primarily through periodic events that lead to a decrease in the block rewards granted to miners.

Why are halvings significant?

Halvings are central to cryptocurrency economic models as they guarantee coins will be issued at a consistent pace, following a predictable decaying rate. This controlled rate of monetary inflation stands as a primary contrast between cryptocurrencies and traditional fiat currencies, which essentially possess an infinite supply.

How many Bitcoin halvings have there been previously?

As of July 2019, there had been only two prior Bitcoin halving events, taking place on the 28th of November, 2012, and the 9th of July, 2016. During the first halving event, the price of Bitcoin stood at $12.31, while it was at $650.63 during the second halving event.

A total of 32 Bitcoin halving events will ever occur. After all these events have transpired, no further halvings will take place, and there will be no additional Bitcoin created, as the maximum supply will have been reached.

Looking for Blockchain Development, NFTs, Website Design, Token Creation, or Other services? Reach out to us at WebGTR. Let’s discuss and bring your vision to life.

Website | Twitter | Instagram | Telegram Official Group |