Posted: 01.07.2021 | 10:04
What is Bitcoin Halving?
Blockchain is a registry consisting of blocks of money transfer data, each of which is approximately 1 MB in size. To create this block, extremely complex mathematical problems are required to be solved, and at this stage, Bitcoin mining comes into play.
Bitcoin halving is called the system created by the creator of Bitcoin, who introduces himself as Satoshi Nakamoto, in order to increase the sustainability of Bitcoin, whose total supply does not exceed 21 million. Nakamoto's goal is to prevent Bitcoin's purchasing power from disappearing, thanks to its limited supply.
In Bitcoin mining, miners compete with high-end computers to solve problems created to add transactions to the Blockchain. The winners in this race are awarded a new Bitcoin and the right to produce the next block on the Blockchain. This reward mechanism is halved every four years, and this halving is called halving. After every 210,000 blocks (when a block production is calculated as 10 minutes, this time is approximately 4 years later) Bitcoin halving will take place.
When the first bitcoin halving took place, the BTC/USD pair was around $11. Bitcoin, which increased by more than 10,000 percent the following year of the Bitcoin halving, started to find buyers on November 29, 2013 at $ 1,135.
BITCOIN HALVING DATES
When Bitcoin mining first started, this block reward was 50 BTC. The first Bitcoin halving took place on November 28, 2012, and this reward was halved to 25 BTC. The second Bitcoin halving took place on July 9, 2016, and the current reward was halved at 12.5 BTC.
Bitcoin Halving 2020
The third and final halving took place on May 11, 2020, halving the reward value from 12.5 BTC to 6.25. Approximately 18 million of Bitcoin, which was limited to 21 million in total, was produced, and thanks to this halving system, the production speed is slowed down and the supply balance is tried to be achieved. In this way, it is expected that the 21 millionth Bitcoin will be produced in approximately 2140 years.