March 29, 2024

Halving took place on the Bitcoin network, BTC emission reduced by 2 times

Halving took place on the Bitcoin network, BTC emission reduced by 2 times

The most anticipated event in the cryptocurrency community has finally happened, the Bitcoin (BTC) network has produced block number 630,000.The third halving took place on the Bitcoin network thisMonday. As a result, the inflation rate, emission and remuneration of the miners of the first cryptocurrency decreased by another 50% and reached 900 BTC per day instead of 1,800 BTC, as was the last four years.

The technical side of the event isthat every 210,000 blocks, the reward for blocks added to the cryptocurrency network is halved. The initial block reward was 50 BTC, was reduced to 25 BTC in 2012, to 12.5 BTC in 2016 and to 6.25 BTC today.

Changing the emission order is carried outautomatically without human intervention due to the rule prescribed at the protocol level. Block 630,000 was mined on May 11, 2020 at 22:23 Moscow time by AntPool pool. As you can see in the image below, the reward for adding it without taking into account commissions was 6.25 BTC, while even for the previous block it was 12.5 BTC.

Halving took place on the Bitcoin network, BTC emission reduced by 2 times

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In total, the Bitcoin network provides 32 halving, the process of paying remuneration for the block will be stopped with the achievement of the offer of 21 million BTC. The last bitcoin is planned to be mined in 2140.

Curiously, bitcoin halving was not mentioned inoriginal white paper. A few months after the publication of the main document, the creator of the cryptocurrency Satoshi Nakamoto sent out another message in which he described the monetary policy of Bitcoin.

“The total volume of the issue will be 21 million coins. They will be distributed among the network nodes when the blocks are released, and their amount will be reduced by half every four years. ”- he said, explaining that the emission in the firstfour years will amount to 10.5 million BTC, then 5.25 million BTC, and so on, until the only form of remuneration for miners is transaction processing fees.

Thus, the system will work until approximately 2140.

This change cannot but affect the participantsBitcoin ecosystems whose activities are related to mining. It is expected that the least efficient miners will no longer be able to participate in mining if the decrease in rewards is not compensated by an increase in the rate. In addition, there may be a slowdown in block release, but it is unlikely to be long-lasting.

Regarding the price of cryptocurrency, halving andthe accompanying decline in the supply of new coins formed the basis for all sorts of forecasts, both relatively modest and extremely bold. Skeptics believe that after the reduction in rewards, miners will be forced to liquidate their existing reserves and will pull the market down. In previous times, such declines were not long lasting and were followed by the achievement of new price highs. However, it must be taken into account that this is the first halving since the surge in retail investor interest at the end of 2017, which left an indelible mark on the further development of the industry.

Bitcoin at the time of publication is trading around $ 8600. On the day of halving, cryptocurrency showed increased volatility, rising to $ 9,200 and dropping to $ 8,200. At the time of publication, the BTC rate stabilized at $ 8700:

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