Taking a look at Bitcoin mining and halving

We take a closer look at the technology that powers Bitcoin 

Bitcoin is one of the most talked-about subjects in the global financial industry. This cryptocurrency managed to reach heights that no other product or service has done. Some statistics showed that Bitcoin has the potential to become a global universal method in the distant future. After all, it is widely accepted by millions of people from around the world.

Not only that, but it has tons of advantages over the regular payment methods. Greater security, no fees, chance to make a profit and instant online transactions are a few of those advantages. More so, Bitcoin is far superior when compared to other cryptocurrencies.

In this article, we wanted to take a closer look at the technology that powers Bitcoin, or to be more precise, two of arguably the most important processes that enable cryptocurrency to thrive – mining and halving. We are going to explain why are they so important and exactly is their purpose.

Bitcoin mining

Bitcoin mining is part of the blockchain, the main technology that powers this cryptocurrency. Thanks to mining, the network is constantly updated and all transactionsmade with Bitcoin are recorded. This is the main source of Bitcoin’s self-sustainability and decentralization. Anyone can take part in it, and there are rewards for everyone.

The more transactions you manage to record; the more Bitcoins you earn as rewards. This process requires you to solve complex puzzles. Each recorded transaction becomes a block and is part of the blockchain. Mining is the main way through which people earn Bitcoins. While it may be hard, it is free, which means that every dollar that they make is pure profit.

Speaking of making a profit, it is worth noting that the platforms where Bitcoins are sold and circulated back in the network are trading sites. Reputable trading sites such as Bitcoin Code can even provide the traders with an additional service. Thanks to their AI systems, they are able to analyze the market and make accurate predictions on what the future price of Bitcoin will be. This is a powerful tool that is shared with the traders when they enter British Bitcoin Profit trading platform.

Bitcoin halving

Bitcoin halving has the same importance as mining. These events take place every 4 years and their purpose is to control the flow of Bitcoins. Halving events actually make mining even more difficult. You can think of these processes as Yin and Yang – they create the perfect balance in the network.

So far, there have been a total of 3 halving events in history. The first halving was in 2012, the second was in 2016, and the third was in May 2020. An interesting fact about them is that they often lead to price surges.

After the halving event in mid-2012 took place, Bitcoin rose to a peak value of $713 in January of 2014. The second halving was in mid-2016 and after it ended, Bitcoin peaked at more than $19,000 in December of 2017.

And as far as the last halving event, we all know the results. After it ended, Bitcoin broke the 2017 record in value in December 2020. But, while many thought that Bitcoin will plunge, Bitcoin remained stable and continued to rise.

After Tesla made the famous $1.5 billion investment in February 2021, Bitcoin reached a historical value of over $50,000. More so, experts believe that Bitcoin is yet to reach its peak. History showed that its value rose to the maximum exactly a year and a half after halving events ended.

With that being said, it is expected that Bitcoin will peak around the summer or autumn of 2021.