The Halving What is it and how does it work?

in Project HOPE6 months ago

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Bitcoin is one of the most popular assets in recent years, its capacity or deflationary state, makes it much more attractive for investment by both individuals and institutional organizations, was created in 2009 under an anonymous character named "Satoshi Nakamoto" in order to create a form of pure digital money, easy to trade and with a decentralized feature thanks to the Blockchain technology.

For this reason, summarizing a little bit about the history of Bitcoin, here in the @erarium project, we'll detail this event, which we're all anxiously awaiting at present called "The Halving".

When we talk about Bitcoin, what concept can we associate with it?

Without a doubt, this is The Halving.


What is Halving and how does it work?

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It's when the mining of a kryptonet reduces by half its reward for extracting a block, speaking especially of Bitcoin, this occurs when the network has produced 210,000 blocks, which translates into time exactly 4 years, was created for the miners to obtain a return through the test work algorithm or PoW. It's also worth noting that there are only 21 million Bitcoins to be issued, so in theory this will always have an upward trend over time, as each Bitcoin becomes more and more valuable and difficult to achieve over time.

In 2012 the number of new Bitcoins issued fell from 50 Bitcoins to 25 BTC, in 2016 it fell from 25 to 12.5. Now in the Halving of 2020, where there are only about 6 days left, it will fall from 12.5 to 6.25. That is, for all those miners, those who like Faucets or who simply have some money stored in crypt coins, it is time to dust off those small amounts of (BTC or XBT, ETH, XRP, LTC.... etc.)

Bitcoin's Halving is programmed by blocks, not by date, meaning that every certain number of validated and/or verified blocks will be carried out, occurring specifically when exactly 210,000 blocks are validated or mined, so the Halving programmed for this May 11, will occur in block 630,000 and approximately in 4 more years in 2024 would be in block number 840,000.

What happens to the miners in the Halving?

Everyone always speculates that every time a reduction of the reward is carried out, many miners would end up turning off their equipment and the reality is that, each one of them is prepared for this event long before, of course, it occurs, in that sense no miner is closed down and in the worst case they are already planning for a replacement and/or upgrade.

Reasons to invest or take advantage of this event

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There are many reasons, however, the most prominent one is the reduction in the issue of Bitcoins of the mother coin and leader of the crypt coin market, which is more likely to increase its value, since the possibility of mining it and gathering large amounts decreases due to this important event that takes place every 4 years. In the graph we can see how the price behavior is after this event occurs.

Bitcoin tends to increase its value enormously after its reduction date is completed, this is what reflects the past when the previous reductions were made and what the Bitcoin system itself lets us see, since as time goes by it is much more valuable. So, if you thought about the future or just collected tokens to accumulate more and more, of course depending on the amount in your wallet, you could be interacting with a future crypto currency mogul. What are you waiting for? Run and check your wallet to see how many tokens or crypto currencies you have stored.

Highlights

It's important to remember that a few years ago in its launch period, Bitcoin was not taken into account and many perhaps had opportunities to invest in it, but they didn't and others like "Laszlo Hanyecz" who would cancel for a couple of pizzas "10 thousand Bitcoins, being this the first transaction with the cryptomoney", if they did it, or simply used their common computer to mine it at that time, thus allowing many people to know the BTC because of this first transaction, it should be noted that eleven years ago, Bitcoin did not have the value it has today.

What would you do if you were in this guy's shoes today and you realized the potential millions you spent on a pizza? Was it worth it?

Closing comments

What can you do if you still don't know how to trade or invest, or simply have doubts about a platform?

In @erarium we invite you to join our project, where you can clarify all your doubts, receive private or public trainings and much more. What are you waiting to join? We are waiting for you!


Finally and not less important, it is necessary to emphasize that we do not know that it can happen in the future, nevertheless. We only have clear a thing: The cryptomonas will mold the world-wide market of a radical way to which we know at the moment and in fact already they are doing it, so you do not part of us if you want to know more on this world.


Consider joining our community on Discord

This way you will be able to access much more information of the financial type. And, you will be able to train with us in trading, money management and investments.

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