Bitcoin halving is a term used in relation to mining bitcoin. Simply explained, it is an event that happens after every 210,000 btc is mined. After the 210,000 btc is mined, the mining rewards are halved by increasing the difficulty. Meaning you now only get 50% of the amount of bitcoin you did before with the same mining equipment.
This in turn lowers the rate of which new bitcoins are produced, lowering available supply. Lower supply for a wanted asset, pushes the price higher.
Every major bullrun has had a Bitcoin halving event right before it takes off and reaches new ATH. Last halving event was May 11, 2020.
This information can come very handy for long term investors/HODL'ers and I haven't seen much discussion around it, so I thought I share.
Here is a link that tracks the estimated next halving event.
No comments:
Post a Comment