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00:00:05 Bitcoin halving
The price of Bitcoin (BTC-USD) has no shortage of catalysts – from the debate around regulation, to whether it’s a security or a commodity – and whether or not it really is digital gold.
00:00:13 Halving date
But one event is undeniable in its impact on the world’s premier digital asset – the halving. Once every four years the reward for mining the biggest crypto currency is cut in half. This happens in order to reduce the amount of coins in circulation.
00:00:33: How is it calculated?
It happens very specifically every time 210,000 blocks are mined. We can calculate the date fairly precisely with the knowledge that the average block time for bitcoin mining is around 10 minutes. That calculation gets us very close to 4 years.
00:00:40: Why is it needed?
Because there is only so much bitcoin available – 21 million to be exact – and like any other cryptocurrency it needs to remain scarce to hold its value.
00:00:55 How often does this happen?
The halving takes place every four years. The first in 2012 decreased the award for creating a new block from 50 BTC to 25 BTC.
The second halving in 2016 lowered the reward further – from 25 BTC to 12.5 BTC.
The last time out was in 2020, and you guessed it, we halved again – the block award dropping to 6.25 BTC.
There nothing wrong with your math – this time around the block reward miners receive will be halved to 3.125 BTC.
00:01:27: What happens to the price?
The moves could be significant; in the past we’ve seen Bitcoin rise after a halving event, though there’s no certainty this will always be the outcome.
00:01:38 Outcome for the miners
The rewards they’re generating will of course diminish, and that’s not great for an industry with a very high cost burden. Keep an eye on how the big publicly listed miners, the likes of Marathon and Riot, manage this event. As ever, talk of consolidation will no doubt do the rounds.
No matter how you look at it, the event will have serious consequences for all crypto stakeholders, and we’ll be across all the developments here at Yahoo Finance.
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Pulse Chain and HEX!
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Thx!
Friendly reminder the Van Nuys Satoshi’ is on the Epstein list
The question is, is Bitcoin going to be like digital gold that extends into infinity? Or are the $21 million Bitcoin cryptocurrencies that will be mined by the year 2140 will become an asset bubble that may burst? I guess we will not know until another 116 years from now supposedly.
there will only ever be 21 million bitcoin. no person can change it. its in the “code”
@@nevets4190 True but also true you and people who was born today will not leave in 2140.
Excellent question. I’ve wondered this too. The bubble would burst before 2140 as people, who’ve already more value in bit than fiat, would sell massively bringing the price way down to a point only the true holders would be burned by stubbornness. But, by that time Bitcoin may be the currency of Earth. If that’s the case then value of bit will reflect the amount of work given to a product or labor, some sort of work. Just a couple thoughts…
good point. who knows if the people generations ahead of us will even embrace bit. Maybe they’ll be no people at all 😞@@bigtree3367
You can simply google the last time it halved and look at the chart to see the price action. Will it repeat this time – nobody knows. What is 99%… buy the rumor sell the news!
So transactions will take longer. The valuation is dependent on what one idiot would pay for a digital asset.
Transaction times will remain the same…about 10 minutes. Bank / Credit card transactions only SEEM like they are instant because they basically extend a line of credit that is settled later…MANY days later. In that time bank transactions often go through several parties, each taking a cut, and each transaction can be reversed or declined at the whim of those institutions. That’s all fine and dandy if you don’t buy anything over $600, otherwise you have to ask nicely to use your own money. Since we are moving away from a cash society EVERY transaction we do now, short of tipping, is almost exclusively through some corporation that tracks, monitors and collects all of your spending data. The fee for all of that is usually 3% PER transaction and that adds to increasing prices because EVERYTHING goes up in multiples of 3% depending on how many transactions happen between production and purchase. Tack on the 7% annual average rate of inflation driving down our purchasing power every year…I’m not a fan.
no, transactions will not take longer.
dis like
Go down to 3,000 look look look
learn crypto from here 😊