Bitcoin
What happens to the crypto market after Bitcoin halving?
Bitcoin is distributed through mining. The 21 million existing bitcoins are scheduled to be mined by the year 2140. That is, the last bitcoin is expected to be mined in the year 2140. At the current rate of issuance, unmined bitcoin will be exhausted before this speculated time . Almost 90% of the total bitcoin supply has been mined. Around 900 bitcoins are mined per day currently.
To sustain issuance and increase scarcity, the number of bitcoins issued per block is regularly reduced. This process of reducing bitcoin issuance per block is known as Bitcoin Halving.
After a predetermined block height (a number that is used to indicate a particular block), the amount of bitcoin issued per block is reduced to half the previous number. For bitcoin, the new halving occurs after an interval of 210 thousand blocks or 4 years.
The most recent halving (2020) halved bitcoin issuance from 12.5 bitcoin per block to 6.25 bitcoin per block. This means that instead of 12.5 bitcoins, miners will now be rewarded with 6.25 bitcoins per block mined. The Bitcoin halving is a significant event in the world of cryptocurrencies, specifically the Bitcoin network. It refers to the process where the reward for Bitcoin mining transactions is cut in half approximately every four years. Watch this report to learn more.