Friday May 24, 2024

What's next after Bitcoin halving?

Bitcoin halving is set to take place this week

By Web Desk
April 18, 2024
Bitcoin halving is going to occur soon. — Unsplash/File
Bitcoin halving is going to occur soon. — Unsplash/File

The Bitcoin halving is anticipated to occur on Friday or Saturday.

This involves halving the number of newly issued Bitcoin that is created around every 10 minutes, according to Investopedia.

The incentive for Bitcoin miners and the rate at which new Bitcoins are issued will both decrease by half following the halving. 

One of the guidelines for the network that Satoshi Nakamoto, the person who created Bitcoin, "set in stone" is as follows along with what will happen after Bitcoin halves.

This will happen after Bitcoin halving

To put it simply, the process of verifying every transaction on the Bitcoin blockchain and creating new Bitcoins is known as mining. 

Miners who successfully validate a block containing transaction information are rewarded for their effort.

Transaction fees and a block subsidy make up this incentive. 

Historically, the majority of the value of the block reward has been made up of newly produced Bitcoin — known as the block subsidy — which is entering the market for the first time.

When the network first began in January 2009, the block reward was set to 50 Bitcoin. 

However, according to a planned timetable, it has since been half every 210,000 blocks or approximately every four years. The block reward will decrease from its current 6.25 Bitcoin to 3.125 Bitcoin following the impending halving.