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April 16, 2024, 05:20:00 AM |
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I believe you've gotten the main idea of the bitcoin halving wrong. I'll see how I can simplify it for you to the best of my ability. The halving doesn't mean that the price of itself will be slashed in halves, no what really happens on the bitcoin halving is that, according to how the bitcoin protocol has been designed, the system is supposed to adjust the bitcoin mining difficulty as well as the miners' block reward once miners have successfully achieved a total number of 210,000 blocks, and this process is often expected to occur automatically every four years.
The last Bitcoin halving happened in May 2020, as of then, the mining or block reward for miners was 12.5 BTC and it was slashed into 2 halves, reducing the mining reward from 12.5 BTC to 6.25 BTC per block. So it's not the price of bitcoin itself that's slashed in halves but the reward for miners' per block. So this coming Halving, the reward for miners will will be cut from 6.25 BTC to 3.125 BTÇ which is half of the previous mining reward per block.
I believe you should understand the mechanism now.
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