What happens in a Bitcoin Halving, you need to know a couple of the Bitcoin basics first. The most important is that Bitcoin is a decentralized digital currency that’s powered by blockchain (and it’s quite possibly blockchain’s most well-known example). It works like any other currency, as it can be used to purchase products and services. However, it also has its own peculiarities.
Bitcoins are created as a reward to miners
Who are no other than people using country wise email marketing list computational power to complete bitcoin transactions (known as blocks). The reward consists of newly created bitcoins and the possibility to apply transaction fees. Does that mean that bitcoins are generated easily by completing transactions? Not quite. Since there’s no central authority backing up Bitcoin, there’s no one that can act as a central bank.
There isn’t a central Bitcoin figure
Or institution that can emit new currencies with so much technology coming our way or absorb them from the market to cause the price to go up or down. Thus, Bitcoin goes up and down according to the demand. Just like with any other currency. Bitcoin would quickly lose all value if they were easy to get. So, Bitcoin’s creator (or creators, we still aren’t sure) decided to award. Miners with Bitcoins for sets of successful transactions.
To prevent big players from investing
A lot of computational power and japan number list generate more bitcoins in less time, Bitcoin’s founder decided that the number of bitcoins awarded per set of transactions would be reduced at specific points in time – every halving! Before getting into a deeper explanation of the halving itself, it’s worth noting that Bitcoin’s creator didn’t just limit the number of currencies awarded for transaction sets – they also limited the number of currencies circulating by design.