Cryptocurrency
What actually happens during a bitcoin halving? Technically speaking, not much
As reported by The Block, “The cryptocurrency world is abuzz with speculation about the potential impact of next month’s bitcoin halving, when for the third time in the network’s history, the reward for mining a block will be divided by two. “Much of the discussion revolves around what will happen to the price. But we’ll […]
As reported by The Block, “The cryptocurrency world is abuzz with speculation about the potential impact of next month’s bitcoin halving, when for the third time in the network’s history, the reward for mining a block will be divided by two.
“Much of the discussion revolves around what will happen to the price. But we’ll have to wait until after the thing actually happens – around May 12 – to know that. In the meantime, let’s explore a different question: What exactly changes under the hood during the halving?
“Technically, the answer is nothing unexpected, or at least, nothing new. When the network hits its 630,000th block – the amount will drop from 12.5 BTC to 6.25 BTC per block.
“But while that may sound boring, it’s also crucial to the system. Bitcoin’s virtually unchangeable block reward schedule, which Satoshi Nakamoto baked into the protocol from the beginning, is one of its signature features….”