Bitcoin Halving Reduces Mining Rewards for Third Time in Brief History

Bitcoin Halving Reduces Mining Rewards for Third Time in Brief History

Bitbaazi

The most anticipated event for cryptocurrency in 2020 has come to pass. Bitcoin’s third Halving took place at 03:23 EST with the mining of block 630,000, effectively reducing the block rewards from 12.5 to 6.25 BTC per new block for the third time in its history.

The first block mined for 6.25-bitcoin was mined and relayed by Antpool, the fourth largest mining pool by computer power.

In previous Halvings, Bitcoin's block rewards went down to 25 from 50 bitcoin per block in November 2012 and further decreased to 12.5 units in July 2016.

Block rewards refer to the amount of Bitcoin received by miners after they successfully validate a new block. The halving occurs once every 210,000 blocks which takes approximately four years.

Bitcoin’s supply is limited to 21 million coins and Halving events are expected to occur until approximately the year 2140. By this time the block reward should reach one satoshi - the smallest possible unit of a Bitcoin.

Hash Rate and Fees

Bitcoin’s supply is limited to 21 million coins and Halving events are expected to occur until approximately the year 2140 when all the Bitcoin will be mined. By this time the block reward should reach one satoshi - the smallest possible unit of a Bitcoin.

The hash rate of Bitcoin remains near its all time high of 123.287m TH/s and currently sits at aroun 120.635m TH/s .

As such, Bitcoin’s mining difficulty – a measure of how hard it is to compete for mining rewards – is expected to increase by 4.9% in about seven days to an all-time high above 16.55 trillion, based on PoolIn's data estimate.

Bitcoin's mining difficulty is programmed to adjust every 2,016 blocks – about every two weeks – based on the amount of computing power participating in mining activity during the period.