Bitcoin halving is the halving of reward for mining bitcoin after each set of 210,000 blocks is mined

Ever since its inception in 2008, the bitcoin price has broken many records and invaded the finance space with a massive blow on traditional investors. After its popularity, many enthusiasts jumped into investing in cryptocurrency, and eventually, some even became bitcoin miners. But if the price and the value of bitcoin remain the same, it won’t attract more investors. Therefore, similar to gold, bitcoin should become unique and be at scarcity to keep its value afloat. That is where the concept of ‘bitcoin halving’ was introduced.

To understand the basics of bitcoin halving, you should first know what a bitcoin is and how it is created and valued. Bitcoin is a famous cryptocurrency that is very popular among crypto investors. It is created by a process called bitcoin mining. Designated bitcoin miners use their computers and computational knowledge to crack mathematical and algorithmic equations to get their hands on bitcoins. Once they mine a bitcoin, they get a certain level of share from its price. The smallest unit of bitcoin is called Satoshi. It is divisible to eight decimal places (100 millionths of a bitcoin). Bitcoin price can even be divided into more decimal places if required and if the participating miners support the shift. Bitcoin halving plays a big role in bitcoin mining and the value fixation process.

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Information shared by : PALGUNI G T