The reward for mining cryptos is reduced by half during the crypto halving. In order to combat inflation by retaining scarcity, the halving strategy was incorporated into the crypto mining algorithm. It happens at an interval of four years.
Know the ins and outs of Crypto Halving
By halving the supply of bitcoin, the quantity capable of being mined with every block is reduced, increasing its scarcity and, thus, its value.
The motivation to mine bitcoin would logically decrease when each halving was finished.
Each halving slows the rate of inflation, which increases the cost of bitcoin.
The first halving occurred on November 28, 2012, when BTC was worth approximately $12; a year later, it was worth almost $1,000. On July 9, 2016, the second halving took place, and Bitcoin’s price fell to $670 before rising to $2,550 by July 2017. In December of that year, the cost of Bitcoin rose to its highest of roughly $19,700. At the time of the latest halving, in May 2020, the bitcoin value was $8,787, but it skyrocketed in the years that followed.
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