We're just a few days away from the third Bitcoin halving. 🚀 If you do think it is the right time to buy, visit our website where you can easily buy Bitcoin. Keep in
mind that you will need a wallet address to get started.
Now, let’s discuss the fundamental questions that come up when talking about the Bitcoin halving. What is it, how does it happen, why do we need this and what does it mean for miners and the cryptocurrency's long-term prospects? Here's everything you need to know.
What happens during the halving?
Whenever new bitcoins enter circulation as block rewards, produced by “miners” who use expensive electronic equipment to “mine” them. Every 210,000 blocks, or roughly every four years, the total number of bitcoin that miners can potentially
earn is halved. During the next halving, the block reward will decrease from 12,5 BTC to 6.25 BTC.
How does halving happen?
Unlike fiat currencies, Bitcoin and other cryptocurrencies are not governed by central
banks but by code. The reduction of the block reward by 50% is hardcoded into Bitcoin and is automatically executed after every 210,000 blocks.
Bitcoin was designed as a deflationary currency. The halving ensures scarcity of Bitcoin by decreasing supply over time and making it a disinflationary asset. As Bitcoin becomes scarcer it could be used as a hedge against inflation as the price, guided by price equilibrium is bound to increase. On the other hand, fiat
currencies (like the US dollar), inflate over time as its monetary supply increases which results in a decrease in purchasing power.
How does it influence the
price?
The halving is attracting a lot of attention because many people believe it will lead to a price increase. The truth is, no one knows what's going to happen. Bitcoin has seen two halvings so far, which we can look at for hints.
Leading up to the halving, Bitcoin.com Exchange decided to halve fees and give a 50% discount on trading fees on all BTC pairs - on more than 20 trading pairs.
🎉
You'll save 50% trading fees on all your BTC trades until Sunday, May 10th 23:59 UTC.
