Bitcoin “halved”: what does this hyped event mean?

Bitcoin has just undergone a hype adjustment, which has slowed the creation of new currencies.

The so-called “halving” of the world’s largest cryptocurrency occurs approximately every four years.

This Crypto currency relies on so-called “miners”, and the software they run can quickly solve complex mathematical problems in exchange for bitcoin.

Monday’s halving event meant that the reward for unlocking a “block” was reduced from 12.5 new coins to 6.25.

In order to control inflation, Bitcoin inventor Satoshi Nakamoto wrote half of Bitcoin into Bitcoin’s code.

This is the third halving since the birth of Bitcoin in 2009. The first time was in November 2012, and the second time was in July 2016. The next halving will take place in May 2024.

The Bitcoin code also means that the reward for miners will continue to be halved every 210,000 blocks until they reach zero in about 20 years, limiting the total number of Bitcoins to 21 million.

This is because-unlike currencies such as the US dollar, pound sterling or euro-cryptocurrencies do not have a central bank to regulate their supply.

Supporters of cryptocurrencies say that this scarcity is part of the reason to support the value of cryptocurrencies and make cryptocurrencies a potential safe haven to withstand currencies that are prone to depreciation during economic crises.

Since the beginning of this year, bitcoin has risen by more than 20%, once reaching $ 10,000. As of press time on Tuesday, bitcoin quoted $ 8,700. Earlier reports said that hedge fund manager Paul Tudor Jones supports cryptocurrencies to prevent inflation.

However, some investors emphasized that halving may reduce the attractiveness of cryptocurrencies to miners.

“Now, miners have less incentive to mine Bitcoin. Mining companies may turn to more profitable cryptocurrencies.”

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