What will happen at the next Bitcoin halving?
Every Bitcoin user and miner is well-versed in the concept of Bitcoin halving and what it entails. The halving refers to one of the most anticipated occurrences in Bitcoin history.
This occurrence has no effect on the amount of Bitcoin in circulation, thus it does not rise exponentially. Let’s find out why there’s such a big deal about Bitcoin halving, how it works, and what will happen during the next halving in the not-too-distant future of 2024.
What is ‘the halving’?
Simply explained, a Bitcoin halving is the process of halving mining payouts once each set of 210,000 blocks is mined. A Bitcoin halving limits the supply of new coins by lowering the incentives for mining Bitcoin as more blocks are mined, therefore prices may climb if demand stays strong.
In other words, Bitcoin employs a fictitious type of inflation that is cut in half every four years until all Bitcoin is distributed and in circulation.
What is the process of halving a Bitcoin?
To further comprehend halving, consider how the currency is obtained. Bitcoin mining is the method by which miners discover BTC by excavating into Bitcoin’s digital cave using specialized mining equipment acting as a virtual pickaxe.
