What is bitcoin halving? The monetary policy of the 'crypto' that is activated every four years
It affects the issuance of bitcoin, whose supply is limited to 21 million coins
The next halving will be in April 2024 and is usually a bullish event for bitcoin
The putting into circulation of new currencies is an increasingly
The bitcoin halving is a key concept that concerns the functioning of the cryptocurrency itself (and that has an impact on the market). It is likely that this word has sounded more strongly lately, since it is an event that occurs every four years and the next halving will take place very soon. But what is it, why is it important and when exactly will it happen?
Before delving into this concept, it is necessary to know some of the basic fundamentals of bitcoin. Bitcoin is a cash and electronic money system between two peers and the cryptocurrency on which it is based. This means that blockchain technology, with which everything works, allows money to be exchanged between two people immediately (like when someone pays with bills or distributes coins) and electronically. That is, face-to-face and intermediaries in the transmission of cash are eliminated thanks to this technology.
Bitcoin is at the center of everything, as it is the cryptocurrency used in this system (the system itself is also called bitcoin). The supply of this 'crypto' is limited and there will only be 21 million bitcoins in total. That is, currency cannot be minted at will, as a central bank could do, since there is a limit. Since Satoshi Nakamoto created all of this in 2008, more than 19.6 million bitcoins have already been issued and are in circulation, as of this writing. The minting of cryptocurrency is a technological, automated and progressive process. It has its own times and rules.
As we have said, the blockchain is the technology that makes this system work and on which the creation also depends.
