Bitcoin is the most stable and well-known cryptocurrency in the digital market. It is believed to be the only one. But, in addition to bitcoin, there is a large group of more than 36 million of them in existence, and they continue to grow every minute.
Extracting a block of bitcoin, according to studies, takes about 10 minutes, six blocks every hour, 12 blocks every two, and so on. This means that, while you enter the web or read this article, many blocks may be mining in the world.
Precisely for this reason, the bitcoin halving process was created to control the bitcoin created, so it would not reduce the value of those already in the market, applying the common principle, less is more. It means that by reducing bitcoins, they can work more optimally without affecting their value.
The bitcoin halving is directly linked to mining, and is made up of two basic rules. Both were established by the creator of bitcoin SatoshiNakamoto; there is even bitcoin with his name. The first rule is that the definitive value of bitcoin is limited to 21 million BTC. The second is that for each solved block, the miner’s reward decreases by 50%.
Previously, the reward was higher, there was no such percentage reduction, but due to the increase in bitcoin, this had to be changed. The profitability of this was what caused the decrease in the reward to miners, from 50 bitcoin to 12.5.
With the bitcoin halving halves, operators propose a specific organization in the whole process. Even the execution periods are exposed previously; in this case, the year 2020 will be approximately May 7.
The bitcoin halving 2020 has a specific purpose, to make bitcoin in circulation not decrease in value. This is also subject to supply and demand in the market.
The plan is contemplated until the year 2140 when the last bitcoin block is extracted or at least more than approximately 21 million.