{"id":13158,"date":"2023-01-04T08:52:30","date_gmt":"2023-01-04T08:52:30","guid":{"rendered":"https:\/\/bitsacard.com\/blog\/?p=13158"},"modified":"2023-01-04T08:52:30","modified_gmt":"2023-01-04T08:52:30","slug":"what-is-bitcoin-halving-and-its-crypto-industry-impact","status":"publish","type":"post","link":"https:\/\/bitsacard.com\/blog\/en\/what-is-bitcoin-halving-and-its-crypto-industry-impact","title":{"rendered":"What is Bitcoin halving and its crypto industry impact?"},"content":{"rendered":"

We all know that only 21 million units of Bitcoin will exist. Also, it is estimated that the last mined unit will arrive in the year 2140. But, to date there are more than 19 million BTC, so how is it possible that only 21 million will ever exist? It\u2019s thanks to the Bitcoin halving.<\/span><\/p>\n

Bitcoin\u2019s design, in which Satoshi Nakamoto seems to have left no loose ends, is automatically regulated to achieve this final number of units created. Thus, approximately every 4 years, or about 210,000 mined blocks, this unique event occurs.<\/span><\/p>\n

However, halving not only impacts Bitcoin but seems to be the defining event of the entire crypto market. It\u2019s time to learn what bitcoin is halving and its impact on the crypto industry.<\/span><\/p>\n

 <\/p>\n

What is Bitcoin halving?<\/b><\/h2>\n

Bitcoin controls its issuance autonomously in a unique event known as halving. To understand and appreciate its importance, it\u2019s necessary to take a step back and understand how each new unit of the first-ever cryptocurrency is issued.<\/b><\/p>\n

Miners are in charge of providing their computational power to create new blocks in the Bitcoin blockchain. These blocks are filled with transactions made by users and validated by the nodes. In this way, miners solve a complex mathematical problem and create a new Bitcoin block.<\/span><\/p>\n

But what do they get in return for the use of their hardware and electrical energy? Of course, new bitcoin units. And they come from two different sources. Let\u2019s take a look at them.<\/b><\/p>\n

 <\/p>\n

Where do Bitcoin miners’ profits come from?<\/b><\/h3>\n

They basically come from two different sources. Firstly, the transaction fees paid by users.<\/b> This sum, which we pay when making a transaction on the Bitcoin blockchain, is an incentive for the work that the miners carry out. <\/span>Therefore, the total transaction fees included in a block are given to miners as a reward.<\/b><\/p>\n

Secondly, there is a reward, which is what every miner looks for when trying to mine a block, which comes from the issuance of new bitcoin units.<\/b> With each new block, a certain amount of BTC is issued, today 6.25 bitcoin, which the miner includes as a transaction to himself when creating the block.<\/b><\/p>\n

In this perspective, then, after a <\/b>new block is mined<\/a>, we find two results<\/b><\/p>\n