Happy 2020 Bitcoin Halving everyone!
Yesterday, the third Bitcoin Halving took place. This is an event that occurs every 210,000 blocks, which is roughly every four years. What happens is that the block reward given to Bitcoin miners for uncovering a block (i.e. a file that records the most recent Bitcoin transactions) is cut in half. A block is mined approximately every ten minutes.
When the Bitcoin network kicked off in January 2009, the reward for mining a block was 50 Bitcoin. The first Halving in 2012 saw the reward cut to 25 Bitcoin per block. In 2016, the second Halving reduced that to 12.5, and yesterday's Halving, number 3, dropped it to 6.25 Bitcoin.
Unlike government backed money, where the supply is increased every time more is printed, Bitcoin is scarce and its supply capped at 21 million. At the time of writing, there are only 2,623,575 Bitcoin yet to be mined.
Just four more years until the next Halving ... and what a four years it is set to be! If the last four years in Bitcoin are anything to go by, we're set for a fascinating ride. Are you on board?
Bitcoin to the Moon is dedicated to following the original cryptocurrency on a journey to its ultimate destination.
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