Bitcoin is the first and best-known cryptocurrency and has been the buzzword of intense debate and analysis. He was born in 2009. At the heart of Bitcoin's creation is a decentralized ledger system called blockchain, which records all transactions on a computer network. It operates on a peer-to-peer network where transactions are verified by network nodes and recorded on a decentralized public ledger. The security and integrity of the blockchain is maintained by Bitcoin miners, participants who use powerful computers to solve complex mathematical problems to verify transactions and create new blocks.

The process is equally important to the Bitcoin ecosystem because it not only processes transactions but also creates new Bitcoins. Miners are rewarded with Bitcoin for each block they successfully add to the blockchain. This reward is two-fold: New Bitcoins, called “block rewards,” are created with each block, accelerating the transaction fees paid by users.

Understanding the effects of changes in Bitcoin and Halving

Bitcoin Halving is a major event that occurs approximately every four years or after every 210,000 blocks are mined. This is the process written in Bitcoin code by Satoshi Nakamoto that controls inflation by halving the reward, hence the term “halving.” We have achieved millions of dollars in managed, predictable results.

For miners, the immediate impact was a reduction in revenue, as the number of Bitcoins they received for mining a block was halved. This could increase the competition of miners as the reward is less and make innovations in mining technology profitable. corresponding increase. Historically, partial conditions have preceded a significant price increase, as a decrease in the number of new Bitcoins entering the market can cause prices to increase if demand remains the same or increases.

Bitcoin Halving

The last halving occurred in April 2024, when the block reward dropped from 6.25 Bitcoins to 3,125 Bitcoins. There are approximately 19.65 million Bitcoins in circulation as of March 2024, and only approximately 1.35 million Bitcoins will be released through investment mining. This uncertainty is one of the main factors contributing to the perception of Bitcoin as "Digital Gold". By then the maximum amount of Bitcoin will reach 21 million. This limited amount contrasts with traditional fiat money, which the government can print at will and is subject to inflation. It is a unique business model for miners, investors and the entire cryptocurrency market. It represents a major interaction between technology and business, and its impact is closely followed by the financial community. Given the dynamic nature of the cryptocurrency space, the consequences of the Bitcoin halving will continue to be a subject of interest and debate as it progresses.

The halving is a testament to Bitcoin's new approach to creating deflationary benefits and has become a major event in the cryptocurrency calendar. As the world focuses on digital currency, understanding the mechanisms and impacts of such events becomes even more important.