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Bitcoin halving is very common these days. We know that to talk about this topic and everything that involves the world of cryptocurrencies, we must go in parts. The first part should understand what cryptocurrencies and Bitcoin are, and how they work in today’s economic world.
So, let’s talk about it. Cryptocurrencies are a type of digital currency that is fully encrypted and protected on electronic servers. This works as an exchange currency that can be sold, bought or exchanged, following a series of protocols. Cryptocurrencies do not have the backing of any bank or government; they are independent in every way.
They have become very popular in the digital economic market; by 2019, there were more than 36 million created in the world. The best known so far are Bitcoin and ethereum, with a stable movement and economic strength. The bitcoin halving 2020 seeks to reduce to a more select group all the Bitcoin that are created.
This has to do with Bitcoin mining, and it is a complicated process that requires dedication. However, miners receive high rewards for offering their services in this area, obtaining 12.5 bitcoin per mined block. Previously, 50 bitcoin was offered, but this was reduced by modifications on the BTC platform.
Extracting a Bitcoin block and mining it, while complex, is a process that can take up to 10 minutes once it starts. This is why the processes of Bitcoin halving were created so that the ones created do not lose value.
These processes occur every four years and are taken very seriously and planned by the operators in charge. This year corresponds to the Bitcoin halving 2020 and is scheduled for May 7.
The rewards obtained by Bitcoin miners, as well as the total price of this cryptocurrency, are subject to supply and demand. Depending on these two elements and the movement of the market, they can have a long-term effect on the price of Bitcoin.
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