.Bitcoin’s “halving” Means;
It will cut creation of the crypto-currency by 50 percent.
A cryptocurrency is
any form of money that exists online and operates without a central bank.
Bitcoin is one of several such currencies.
No one person or group
is in control of this halving process. It is a rule written into bitcoin’s
computer program.
The event is expected
in May, 2020. It would cut by 50 percent the number of new bitcoins given to
bitcoin miners. These miners create the world’s supply of crypto-currency by
solving complex mathematical questions.
Bitcoin market players
are predicting sharp price increases as well as sharp drops in the value of the
crypto-currency. Such moves have happened in earlier halvings, which take place
about every four years. The point of a halving is to keep down the number of
bitcoins and control inflation.
Bitcoin’s future value
is decided by technology and not, some say, by the rules of economics. The
rules of economics say that if supply is cut and demand stays the same, prices
rise. Since the cut in supply is expected, the price may slowly rise or fall
before the cut is made.
Bitcoin miners receive
a set number of bitcoin, currently 12.5. The next halving will take place in
May, when the number will drop to 6.25.
The two past halvings
took place in November 2012 and July 2016. In the one year periods that
followed, bitcoin’s value rose close to 80 times in 2012 and four times in
2016.
Please note that, I am
a fan of crypto-currency and the above mentioned article is for information
purpose only for the crypto fan, who might get benefit from it
.
