BITCOIN
HALVING - ECONOMY
News:
What is Bitcoin Halving
and what it means to the crypto community? | Explained
What's
in the news?
●
Crypto traders and Bitcoin miners are
eagerly awaiting their quadrennial event known as Bitcoin halving, which is
predicted to occur in April 2024.
Bitcoin
Halving:
●
Bitcoin halving means 50% reduction in the reward paid to Bitcoin miners who process
cryptocurrency transactions for inclusion in the public digital ledger, known
as the blockchain.
Quadrennial
Event:
●
This event is programmed into the Bitcoin
algorithm and it occurs approximately every four years.
Regulation
Mechanism:
●
Bitcoin halving serves as a mechanism to
regulate the issuance of new Bitcoin rewards to miners, who play a vital role
in securing the network.
Distinct
Market Phases:
●
Pre-Halving
- It precedes the event, fueled by speculation and anticipation of reduced
supply.
●
Post-Halving
- It is a period of reaccumulation ensues as the market consolidates before
embarking on a parabolic run-up to new all-time highs.
Go
back to basics:
Bitcoin:
●
It was introduced in 2009.
●
The origin of Bitcoin is unclear, as is
who founded it. A person, or a group of people, who went by the identity of Satoshi Nakamoto are said to have
conceptualized an accounting system in the aftermath of the 2008 financial
crisis.
●
A type of digital currency that enables
instant payments to anyone.
●
It is based on an open-source protocol and
is not issued by any central authority.