BTC Halving Guide and Its Importance.
The fourth halving of BTC is about 30 days away. BTC halving in previous years will usher in an explosive market. After the halving, the cost of BTC mining will probably reach around US$40,000.
What is the BTC halving?
The BTC halving occurs every four years, or after 210,000 blocks have been mined,
During this event, the rewards for mining new blocks will be halved. In other words, the mining reward will be reduced from 6.25 BTC to 3.125 BTC.
At present, about 19.68 million BTC have been mined. After the halving in April, about 452 new BTC can be mined every day.
It is predicted that the last BTC will be mined around 2141, and there is a high probability that this historical moment will not be witnessed.
The importance of halving
1. Plays a very important role in the economic model of BTC, ensuring its deflationary nature.
2. Reduces the speed at which new BTC is created and released into circulation.
3. Slowing supply increases scarcity. Generally speaking, the scarcer something is, the more valuable it is. Therefore, in essence,
If demand increases and supply decreases, the price of BTC will get higher and higher.
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