Bitcoin halving: We are still early. VERY early. Actually, EXTREMELY early. Just saying 🥳
“Bitcoin halving is when the reward for Bitcoin mining is cut in half and takes place every four years. The halving policy was written into Bitcoin’s mining algorithm to counteract inflation by maintaining scarcity.”
Currently, Bitcoin has an inflation rate of less than 2%, which will decrease with further halvings.
How does it work?
A decentralised network of validators verifies all Bitcoin transactions in a process called mining. Until April 2024 they are paid 6.25 Bitcoin.
when they are the first to verify a block of transactions, using complex maths to add it to the Bitcoin blockchain as part of its proof-of-work mechanism.
At the current bitcoin price, 6.25 BTC is worth about € 248.000 as of January 2024, an incentive for miners to keep adding blocks of bitcoin transactions. A new block of transactions is added roughly EVERY 10 minutes.
The #Bitcoin code dictates that the reward for miners is reduced by half after every 210,000 blocks are created. That happens roughly every four years, in periods that are often accompanied by increase in Bitcoin price volatility.
So it is an excellent time to have a more thorough look at this innovative digital asset.
There are a total of 21 million Bitcoins, and there never will be more 😇
Limited supply the experts it call. May Bitcoin be with us 🦋