What is Bitcoin Halving?
Half goes into the origin story of Bitcoin, which was born out of the ashes of the 2008 financial crash. The creator of the cryptocurrency — who went by Satoshi Nakamoto, but whose real identity remains unknown — invented bitcoin the following year, and dreamed of creating an international currency that operated outside the control of governments or central banks. Do it. Importantly, Satoshi wrote that there would only be 21 million bitcoins, to reduce inflation and potentially make each bitcoin more valuable over time.
While the Federal Reserve, in contrast, can adjust the supply of dollars when it deems necessary, bitcoins will be issued at a predetermined and always slow rate. Satoshi determined that approximately every four years, the reward for creating new bitcoins would be halved, in events known as "halvings". As new bitcoins become harder to create, each one will become rarer and more valuable, the theory went. Eventually, new Bitcoin will stop being created entirely (this likely won't be for at least another century).
Half goes into the origin story of Bitcoin, which was born out of the ashes of the 2008 financial crash. The creator of the cryptocurrency — who went by Satoshi Nakamoto, but whose real identity remains unknown — invented bitcoin the following year, and dreamed of creating an international currency that operated outside the control of governments or central banks. Do it. Importantly, Satoshi wrote that there would only be 21 million bitcoins, to reduce inflation and potentially make each bitcoin more valuable over time.
While the Federal Reserve, in contrast, can adjust the supply of dollars when it deems necessary, bitcoins will be issued at a predetermined and always slow rate. Satoshi determined that approximately every four years, the reward for creating new bitcoins would be halved, in events known as "halvings". As new bitcoins become harder to create, each one will become rarer and more valuable, the theory went. Eventually, new Bitcoin will stop being created entirely (this likely won't be for at least another century).