[Crypto] This is Bitcoin Halving

Some people may wonder where Bitcoin comes from?

If Gold is mined from the earth and fiat money is created from special paper and metals. bitcoin is "mined" through the transaction validation system on the Bitcoin network. Bitcoin mining will be successful if the miner manages to crack the mathematical code of 1 block of transactions. This is the only way to find Bitcoin that will later be used for trading.

To get Bitcoin results, miners must frequently update the blockchain by verifying transactions made on the network that later turn into blocks.

Miners compete with each other to solve puzzles and cryptography formulas are performed computationally intensively called 'proof-of-work'.

If the Miner manages to answer the cryptography puzzle it will chain the latest 'blocks' with the previous transaction block, from which the miner receives a newly minted amount of Bitcoin as a reward given from the Bitcoin protocol.

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What is Bitcoin Halving?

Bitcoin Halving is a Restriction on the supply of Bitcoin.

The story is that Satoshi Nakamoto the creator of bitcoin wants bitcoin to have a supply Satoshi Nakamoto wants to make the supply become limited, bicoin supply is limited from time to time. From here Halving for bitcoin is needed.

Bitcoin rewards obtained by miners to verify a block of transactions will be cut in half.

This reduction in bitcoin rewards is what is referred to as halving.

Here's the data that shows the Halving Bitcoin schedule that has happened.

November 28th, 2012

210.00025 BTC/block

July 9th, 2016

420.00012.5 BTC/block

May 11th, 2020

630.0006.25 BTC/block

Unknown

2024840.0003,125 BTC/block

This Halving event influenced Bitcoin deflation. Bitcoins become scarce over time as the rewards of bitcoin miners continue to decrease, the value will continue to rise because bitcoin in the now age is the main thing. Based on existing data, the last Bitcoin will be mined after the halving event to the #64.

The first halving occurred in 2012, Bitcoin which cost $1 to $1,000. The second halving occurred in 2016, the original Bitcoin price of $900 to almost $20,000.

Halving is the most important factor and should be considered for BitCoin investors. The newly mined supply will be cut in half, which makes it scarce and increasing in price with the Halving event.

The price increase is not immediately instantaneous when halving occurs, but will slowly rise to the highest price and then the price will fall back to form a new level that is more difficult to mine Bitcoin than the previous level.

Halving Effect on Crypto Exchanges in the Market

Inflation caused by Bitcoin Halving scheduled in the Bitcoin program itself makes the market buy more Bitcoin before Halving occurs or after Halving occurs.

Some people believe bitcoin supply is getting limited which makes bitcoin price go up. Although the price does not rise instantly signifikat, but the data says halving occurs after 6-18 months.

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Conclusion

The existence of Bitcoin Halving as a reminder that the supply of bitcoin is limited. By scheduling the supply of Bitcoin, we will be more confident that bitcoins that have been produced in the world will only have 21 Million Bitcoins. As things go, miners are getting less Bitcoin for sale, making Bitcoin a cryptocurrency that is becoming increasingly rarer and more valuable.