Bitcoin halving occurs all four years. From this point on, it will take even more computational power to mine a block and cause a decrease in the rate coins are brought into the world. For example, in 2008, when bitcoin was founded, there were 50 bitcoins mined in each block.
Every 210,000 blocks mined after that, there has been a decrease of half the coins. At first, it went from 50 bitcoins to 25; it went from 25 bitcoins mined to 12.5 mined per block. This will continue for another four years until all 21 million bitcoins (21,000,000) have been brought into the world.
People are constantly talking about the upcoming halving of bitcoin. Still, few people truly understand what it is, how it benefits us all and why so many people are interested in the topic.
Even websites show information regarding blocks mined in time after the last halving! For those not familiar with the term, a halving is when half of all new bitcoins mined are no longer paid to those mining. It occurs on a predefined schedule.
Many believe that it will increase the scarcity of bitcoins and cause prices to go up significantly in price because there will be fewer coins in circulation – simply because half of all new coins that would have been mined will not be. This means that the price could increase, but only if demand stays relatively intact or increases.
If you live outside of the bitcoin bubble and don’t understand what all the fuss is about, think about it like this: let’s say you work at a gold mine. You are given the task of mining for gold. But instead of all the ore you find being yours to keep; half will now be taken away by your boss (obviously not literally).
Now that you know what halving is, how does this happen? What happens with bitcoin is that when a miner mines a block, it gets sent to the blockchain, where all transactions are processed and confirmed.
It can take 10 minutes for this whole process to complete. The ‘base reward’ for mining a block is 25 bitcoins. This amount slowly decreases after every four years when bitcoin was created!
What is hashing when it comes to bitcoin?
This is when a miner has completed mining a block and sent it to the blockchain for processing – all within 10 minutes! Hashing about bitcoin means solving an equation that allows you to add the current block being mined to the blockchain. It’s really what you would call ‘checkmate’ in the world of bitcoin.
A miner has solved an equation, and now everyone knows it – because it is sent to the blockchain for everyone to see! The reward for solving the hashing equation is absolutely nothing!
How do you get bitcoins?
Bitcoins can be obtained by mining, receiving them as payment for goods or services, or purchasing them on an exchange. Bitcoins can also be obtained by ‘micro transactions’ – but this is something you do not want to hear about! If you are new to bitcoin, consider starting with a trusted site like Crypto Genius platform.
There are, however, alternative ways of getting bitcoins without paying anything. For example, you can win them by playing games or completing tasks. You can also buy them using bitcoin via a process known as ‘peer to peer transactions.
No matter which method you use to obtain bitcoins, they are all hard work! There is no easy way of getting free bitcoins.
Now, you should be enlightened about what bitcoin halving and hashing are. Many people think that the price of bitcoin will increase significantly due to this event taking place – but it’s not guaranteed.
The other important thing for those considering investing is knowing that bitcoin will not become smaller! It will, in fact, only increase in price. The more popular it becomes, the higher the demand – which means that prices could skyrocket in a concise space of time!