Bitcoin Halving: What you need to know and how it affects your wallet?

Bitcoin, the world’s most famous cryptocurrency will soon be halved. Another Bitcoin halving is expected to take place on 20 April. This makes it the fourth time the leading crypto coin has been halved since the cryptocurrency’s first block was mined in 2009.

Bitcoin Halving happens roughly every four years. The most recent Bitcoin halving event took place on 11 May 2020. This time, Bitcoin has seen an appreciation of 14% in the month leading up to the halving so far.

But what is the halving about and what does it mean for bitcoin users/enthusiasts?

Similar: Ethereum Triple Halving explained: All you need to know

Bitcoin Halving explained

The creation of Bitcoin and other cryptocurrencies was aimed simply at having a currency that is secure, private and independent of third-party institutions like banks and governments.

Created by the anonymous Satoshi Nakamoto, the currency was set to a hard supply cap of 21 million coins. This Bitcoin is mined using high-powered computers and complex algorithms by ‘miners’ – programmers who mine the currency.

Now, every four years (after 210,000 blocks), the bitcoin halves as a way to reduce the reward given to these miners. Before now, miners get 12.5 coins per block mines, but now that reward has been reduced to 6.25 coins per block following the halving earlier today.