In the financial markets, all eyes are on the “halving” in Bitcoin, which occurs approximately every 4 years.
According to the information compiled by the AA correspondent, a critical update in Bitcoin mining is expected to occur at midnight on April 20. After this reward halving in the Bitcoin network, the rewards earned by miners per block will be halved.
Here are 10 questions and their answers regarding the prize halving, which may have an impact on pricing in the cryptocurrency market:
Question 1: What is Bitcoin reward halving?
Bitcoin is a decentralized digital currency built on the blockchain, where users can make transactions without intermediaries. In this network, which can be accessed by anyone with internet access, each block contains data from the previous block. In order to make changes to these blocks added one after another, all blocks must be changed.
On average, a block is produced every 10 minutes on the Bitcoin network. After each block produced, miners are given a reward. Reward halving is known as the halving of the rewards given per block in the Bitcoin network every 210 thousand blocks.
Question 2: How is Bitcoin mining done?
Bitcoin works with a protocol called Proof of Work (PoW). In this protocol, which is translated into Turkish as “proof of work”, people called Bitcoin miners add new blocks to the network by solving complex mathematical problems. At the end of the process, miners are given rewards for each block added.
Question 3: How often does the halving occur?
This process, also called “Halving”, first occurred in 2012. Until then, Bitcoin miners were given 50 Bitcoins as a reward per block. After this date, the award, which was 25, decreased to 12.5 in 2016. Rewards per block, which was updated to 6.25 in 2020, has continued with the number until now. However, the rewards after the halving, which is planned to take place at midnight on April 20, are expected to be 3,125.
Question 4: Why does it happen every 4 years?
In the Bitcoin network, where the reward halving occurs every 210 thousand blocks, each block is verified in an average of 10 minutes. Since the production process of all 210 thousand blocks takes approximately 4 years, halvings occur at these intervals.
Question 5: When will the reward halving take place?
The next reward halving in Bitcoin is expected to occur at midnight on April 20, at the 840 thousandth block. Since block production processes vary around 10 minutes, the exact time cannot be calculated until very recently. It is stated that the halving moment will also change depending on the lengthening or shortening of block production processes.
Question 6: When is the next halving?
It is estimated that the next halving will occur in 2028 at the 1 million 50 thousandth block.
Question 7: How much Bitcoin is left to be mined and when will it run out?
19 million 684 thousand units of Bitcoin, which can reach a maximum supply of 21 million, have been mined so far. There are 1 million 316 thousand Bitcoins left to be mined. The last Bitcoin mining is expected to occur in 2140.
Question 8: Are there also halvings in other cryptocurrency projects?
Halvings also occur in some cryptocurrency projects that work with the “proof of work” system, such as Bitcoin. Cryptocurrency projects such as Litecoin, Bitcoin Cash, Zcash are among the projects in question.
Question 9: How will it affect miners?
After the halving, the reward miners earn per block will be halved. This means that miners’ income will decrease significantly.
Question 10: Will there be effects on the cryptocurrency market?
The Bitcoin reward halving does not have a direct impact on the networks of other cryptocurrency projects known as altcoins. However, the volatility in the Bitcoin price after the “halving” also indirectly affects the pricing of other projects.
Source: AA / Prepared by Irem Yildiz