Bitcoin halving: 8 things you need to know.

Well, as halving arrived, consequently the demand for crypto will rise (or not), with that, they will probably bring more people to Bitcointalk.

So I decided to create this topic explaining about Bitcoin Halving and what will happen to it going forward.

:)

I think it's cool, because it's easy to read and for people who don't understand much of the subject, they can already get acquainted.

Bitcoin halving: 8 things you need to know

Bitcoin halving consists of halving new units of the virtual currency that are created from the mining process. This Monday, the 11th, the process takes place for the third time in its history. Below, let me explain what you need to know about the mechanism that helps control cryptocurrency.

What is bitcoin halving?

Halving is a mechanism present in the bitcoin algorithm that halves the pace of creating new virtual currencies and, thus, the value of the rewards to miners that keeps the blockchain network up and running.

Is it new?

No. This is bitcoin's third halving. The first occurred in 2012 and decreased the number of bitcoins created per day from 7,200 to 3,600. In 2016 there was another halving, which resulted in 1,800 bitcoins a day. As of Monday, only 900 new bitcoins will be created per day.

How was this decided?

Unlike fork, halving is not something that is decided by the blockchain community. It is an automatic process due to the bitcoin algorithm.

What will be the next halving?

The expectation is that the process continues to occur every four years, which would cause the value of cryptocurrencies to be halved until 21 million bitcoin units are created, which is expected to happen in the year 2140.

Will the price of bitcoin go up?

Because it is an extremely volatile asset, it is impossible to make any predictions about the price value of bitcoin and other cryptocurrencies.

Experts sought by EXAME say that there may be an initial appreciation, but that the sales made afterwards may cause the value of the virtual currency to fall by up to 30%.

Will another cryptocurrency be generated?

No. The mechanism consists only in cutting the production of new bitcoins. The process that creates a currency from an existing one is called a fork. This happened with the creation of bitcoin cash in August 2017.

What is mining?

Mining is the process in which users dedicate the computing power of their computers to keep the blockchain network active, which performs all transactions between bitcoin users. In return, they are remunerated with fractions of virtual currencies created per day.

Is it worth mining for bitcoin?

This depends a lot on where you are located and the size of your structure to carry out mining. In Brazil, the cost of electricity does not compensate for the process - and it will be even worse after today.

For example, in Paraguay, which concentrates some mining farms, the value of one megawatt-hour of electricity for industries is $ 51 compared to $ 125 charged in Brazil, according to data from March last year.