Bitcoin halving
- Bitcoin halving refers to the 50% reduction in the reward paid to Bitcoin miners who successfully process other people’s cryptocurrency transactions so that they can be added to the public digital ledger known as the blockchain.
- In order to “grow” Bitcoin’s blockchain and keep the ecosystem running, Bitcoin miners rely on advanced computer equipment to solve a complex mathematical puzzle through a process known as ‘Proof of work.’
- This intense activity is the reason Bitcoin transactions result in huge carbon footprints and require vast amounts of electricity. No real mining is carried out.
- The Bitcoin miners with cutting-edge computer equipment, working on an industrial scale, are most likely to solve the puzzle first and claim their reward, which is currently set at 6.25 Bitcoin (BTC).
- While the reward amount is set, the true value of this prize fluctuates based on BTC prices in the market, and when the owner chooses to sell.
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