Bitcoin Halving: Distribution Schedule, Trading & More
The next bitcoin halving, which may occur in May 2020, could have a dramatic impact on the cryptocurrency market and price. You can learn here about what is Bitcoin halving, who chooses the Bitcoin distribution schedule, and how to trade Bitcoin?
What is Bitcoin halving?
Halving is a simple concept. In Halving, the miners are rewarded with bitcoin blocks according to the two rules created by Satoshi Nakamoto, the Bitcoin founder. The first rule is the supply of Bitcoin is limited and finite to 21million per miners.
The second rule states, “The Law of Supply and Demand.” It means the demand increases, the supply decreases. In this case, when the miner reaches 2,10,000 blocks, those attached to the blockchain. The rewards will be decreased by 50%. It is known as Halving, Block Halving.
During Halving, the “miners” involve it’s time and resources to solve a mathematical equation, games, or puzzles, which are created by the programming built in the BTC systems. The supercomputer consumes lots of electricity and equipment of the miners so that a block can be published.
Who chooses the Bitcoin distribution schedule?
Bitcoin creator, who was a team or an individual, was roughly disappeared after a year of realizing the software. So, there are no clues of why they had a specific formula for adding new bitcoins into circulation.
Shortly there was a release of a Bitcoin whitepaper. And Nakamoto summarized the numerous approaches their chosen monetary policy could pay out, pondering the conditions under which it could result in deflation or inflation.
There is a myth saying that Bitcoin was created for political benefit, which is yet to be proved. The belief that bitcoin can reduce the power of banks and governments over monetary policy. It can also help to bail out some of the struggling institutions.
How to trade Bitcoin?
Of course, you might be wondering also how to trade a bitcoin Halving in 2020. The main benefit of trading a Bitcoin is that you can’t take ownership of the coins and this allows you to:
Trade without a wallet or account: You do not need a portfolio or an account while exchanging. You need a trading account that can be set up in a maximum of ten minutes. But keep in mind trading without any wallet or account; you don’t own an underlying asset.
Long/ Short term investment: You can only wait and see whether there would be a rise or fall in the value.
Take advantage of leverage: You can open a place by adding a large amount of deposit known as margin. That would expose you to access to a broader market. Whereas in leverage, you get an exposure to the broader market but will a small amount of the capital. You can gain or lose in the market.
That’s all on halving in 2020 and things you should or curious to know about it