What is the Bitcoin Halving Countdown?
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Due to its high liquidity, Bitcoin provides an excellent long and short-term investment. Hence, it's not a surprise that many Bitcoin owners decide to make some serious money on it. Those who consider themselves lucky get involved in bitcoin casino games and use free bitcoin slots in the hope of good fortune. Others decide on live trading and register an account in one of many Bitcoin trading platforms.
Besides owning a nice share of this unique cryptocurrency, what they all have in common is the experience and expertise regarding Bitcoin specifics and processes, including the so-called Bitcoin Halving.
If you, too, would like to get serious about the Bitcoin game, you should start to research this subject carefully, as there is no success without knowing about Bitcoin Halving Clock. To help you get familiar with the notion and learn the basics of the process and how it operates, follow our short guide.
Bitcoin Halving Countdown
As you probably know, Bitcoin generally is based on the notion of blocks and miners. When a new block is produced (approximately every 10minutes), miners are rewarded a certain amount of bitcoins. This way any new bitcoins enter circulation in the form of block rewards.
With every 210,000 blocks mined, the block reward - i.e., a potential number of bitcoins that can be won by miners - goes through the process of reducing the rate of generating new Bitcoins in half, which is called halving. This process will be regular, happening approximately every 4 years, until the block reward per block becomes 0, which is supposed to happen around 2140. The process will end with 21 million coins.
Why Does Bitcoin Halving Occur?
Typically, traditional fiat currencies (like the US dollar or Euro) go through the process of inflation with the increase of the monetary supply. Due to this process, the currency's purchasing power diminishes, and so does the currency's value. The reason for this happening is because there is theoretically an infinite amount of fiat currency.
Thanks to the halving process, that is not the case for Bitcoin. On the contrary, halving ensures the steady issuance of bitcoins and guarantees a more significant demand for them in the future. The decaying rate of the cryptocurrency is predictable, which allows controlling the rate of inflation. Halvings is the basic process for cryptocurrencies and is one of the main features that distinguish digital currencies from fiat ones.
How Does Bitcoin Halving Work?
How Bitcoin Halving is executed and operated is included in the Bitcoin protocol. That means the network itself controls and regulates Bitcoins' issuance by using a specific code provided by Bitcoin Core Github. The process happens due to all Bitcoin participants' consensus, who know the Bitcoin Halving rules ever since they were designed when Bitcoin first launched.
Past Bitcoin Halvings
So far, there have been 3 bitcoin halving events. The first one occurred on the 28th of November, 2012 (UTC) at block height 210,000. The second halving was four years later, on the 9th of July, 2016 (UTC) at block height 420,000. As for now being the last one, the third halving happened on the 11th of May, 2020 (UTC) at block height 630,000.
The next halving date can be tracked with the Bitcoin Halving Countdown clock, which is based on the official Bitcoin algorithm. The Bitcoin Halving Countdown live clock can be easily found online as it's available on multiple websites.
Please note that the total amount of all Bitcoin Halving events is only 32 - then, the maximum supply of Bitcoin will be reached.
If you're new to the world of cryptocurrencies and would like to learn more about Bitcoin exchange, don't hesitate to look for the information available online, both on the official Bitcoin site as well as in the reviews provided by experienced Bitcoin users. Importantly, when choosing the right website or method to exchange your cryptocurrency, always make sure your funds are protected by insurance and the website is not a scam. You can ensure safety by checking the site encryption, data protection, and GDPR compliance.
As an experienced user, who wants to develop a sound strategy regarding the halving process, you should look for more specific information on the topic on trusted websites, such as Investopedia. Spending some time researching the notion will surely help you better understand the Bitcoin processes and, consequently, better manage your cryptocurrency.