Bitcoin halving approaches: Versity explains why it's important

You're bound to have heard of bitcoin, one of today's first and most valuable crypo-assets. If you'd like a refresher, the Versity team told you all about it right here.

What is Bitcoin halving?

Halving is a Bitcoin-specific event. It takes place every 4 years and is eagerly awaited by the entire web3 community. And for good reason: it largely determines the future of the cryptocurrency!

This protocol designates the division by 2 of the reward awarded to Bitcoin miners who register new blocks on the blockchain.

What is the purpose of Bitcoin halving?

Halving serves a dual purpose: it limits the quantity of new Bitcoins in circulation on the network, while at the same time ensuring the longevity of the blockchain.

It should be noted that halving takes place automatically, as it is written into the Bitcoin source code.

A few facts and figures about Bitcoin halving

• A new block is created every 10 minutes.

• Every 4 years, a new halving takes place.

• 21 million bitcoins is the maximum number of bitcoins in circulation set by founder Satoshi Nakamoto.

History of Bitcoin halvings

So far, Bitcoin has experienced 3 halvings:

• The 1st halving on November 28, 2012, after 210,000 blocks had been mined and miners' earnings had fallen to 25 BTC per block.

• The 2nd halving on July 9, 2016, after 420,000 blocks had been mined. Miners earned 12.5 BTC between them.

• The 3rd halving on May 11, 2020, after mining block 630,000. The reward is 6.25 BTC.

At this rate, the last halving should take place in 2140, and the next halving in 2024.

Versity will keep you posted as always!