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So what is the Bitcoin halving event and why is it so important to know about?
We define this event in detail, cover why it exists and how investing in Bitcoin works.
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New Bitcoin is created by a process known as “mining.” As transactions occur, they are handled by the miners who package them into blocks. This helps to keep the network running, and as compensation for using their computing power, they are awarded Bitcoin.
At the time of its launch, the reward was 50 Bitcoin per block processed. However, the award is cut in half every 210,000 blocks mined which is roughly every 4 years. Users also do not have to worry about the Bitcoin price getting diluted by too many coins being released on the market. Not only does it take time and effort to mine Bitcoin, the software has a limit of 21,000,000 coins. That means that the maximum number of Bitcoin that can exist is capped at 21,000,000.
There will only ever be 32 Bitcoin halvings. Once the 32nd halving is completed, there will be no more new Bitcoin created, as its maximum supply of 21 million will have been reached; this was designed to prevent inflation.
Based merely on predictions, the next Bitcoin halving is expected to happen in December, 2023, when this happens the mining reward will be cut in half, hence the name halving.
To invest in Bitcoin, you need to set-up a digital wallet to buy the digital coin online and store it. Furthermore it’s not possible to short sell Bitcoins through crypto or bitcoin exchanges.
However, when you trade Bitcoin at Baxia Markets, you’re actually trading a Bitcoin CFD, a derivative product of the underlying asset that you can make a profit from by speculating on the change in the underlying asset price. At Baxia Markets, Bitcoin is quoted against the major currencies as US Dollar, Euro and other cryptocurrencies as well. This means that when you trade the BTCUSD pair, for example, you’re buying Bitcoin and you’re selling USD.
We hope that the information provided in this article was interesting to you and mostly that you can use this information to improve your trading skills. We strive to present this information in a way that is easy for you to digest. If you enjoyed this article make sure to visit our resources page to find more information that can help you become a better trader and test those strategies on a trading account.
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