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Bitcoin Halving: What is it, when will it happen and how does it work?

Crypto community is already looking forward to Bitcoin Halving

Before we talk about Bitcoin Halving, we need to understand the story. Do you know who Satoshi Nakamoto is? It is a Japanese pseudonym, and was created with the aim of hiding the true identity of one or more people. He wrote the initial Bitcoin protocol in 2008.

Concept

The idea was that Bitcoin was an independent and decentralized currency. That it was neither controlled nor issued by a central authority.

Then you ask: – But how does it all work? How so decentralized? Who issues and controls that currency? It is very simple, the process of issuing the currency is called mining, and it is done by blockchain, Bitcoin’s own network, all in a 100% automated way.

Blockchain

Imagine all Bitcoin data and transactions in one spreadsheet, since the currency was created. This spreadsheet receives information, and each information is a block, hence the name blockchain (chain of blocks).

Mining

Mining is adding the blocks of information in the spreadsheet we mentioned. It is the most secure system ever created in the financial market as a whole, with real computing power and it works.

In practice!

For mining to happen, specific equipment is needed to solve calculations, read algorithms and place blocks on the blockchain network, all in a matter of seconds. These equipments are called miners, and receive a bitcoin reward for the work done.

Bitcoin Halving

Now, let’s talk about Bitcoin Halving.

Satoshi Nakamoto created Bitcoin, and also placed a limit on the coin’s issuance, only 21 million units of Bitcoin would be mined. And for every 210 thousand blocks issued, the amount of Bitcoins would drop by half. The miners’ reward would be even less with each event of that.

It is this reduction that we call Halving!

In the history of Bitcoin, there were only 2 Halvings, the first in 2012 and the second in 2016. The next is scheduled for May 2020.

What will happen to Bitcoin?

The trend is to appreciate the currency. Based on data from previous Halvings, we can expect further appreciation in 2020.

Today Bitcoin is worth $ 7,687.65 dollars or R $ 43,329.95.

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