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What is halving?

Bitcoin Halving happened two times in the past - in 2012 and in 2016. But what is that exactly? 

Halving is the moment when the speed of generating new Bitcoins is halved. This happens approximately every four years. In 2012 block were halved from 50 BTC to 25 BTC per block, then in 2016, from 25 BTC to 12,5 BTC. And now we are preparing leap to 6,25 BTC per block. 

The exact point is that the block reward is halved, so after every Bitcoin halving, miners start receiving 50% less BTC for digging up a block. 

What is the block reward now? 

This is the number of bitcoins that a miner achieves for each new block added to the blockchain network. More specifically, this is the amount of crypto that the miners receive for the successful approval/release of a new block by solving very complex mathematical issues with their cryptocurrency digging equipment. It is, therefore, the reward for their work. Each new block will generate 6.25 BTC and that will be this year's prize. 

History of halving 

When bitcoin was launched in 2009, miners received 50 BTCs per block. In this way, a total of 10,500,000 BTCs were generated before the first halving. After the halving, which took place in November 2012, the miners received 25 BTC for each block.

It is also worth taking into account the fact that at that time the highest bitcoin price was 31 USD in June 2011, but then the "bubble" burst and before the end of the year the price returned to 2 USD. 

The second bitcoin halving was carried out on 6 July 2016 after the creation of block 420,000. From that moment on, miners started to receive 12.5 BTCs for each new block, which is the rate valid until today. 

We can only speculate and guess how this year's halving will affect BTC. The previous ones made the price rise. 

BUY BITCOIN NOW

Promotion on CoinDeal on the occasion of halving 

With halving approaching, we've reduced all limits on the OTC trading market for a limited time (from May the 4th till 31st May). That means you can buy Bitcoin with one click at a certain price!    

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There are only a few days left. Stay tuned!