With the date for bitcoin halving fast approaching, in fact, with less than 7 days to go, it feels really important to spend some time on the topic and get to understand what it entails, who gets to benefit from it, how it affects the price and where best to store your bitcoins to benefit from it.
If you are wondering why this is making the news, then that's a good place to be because it is one of the big events in Bitcoin’s history.
It generally means that the number of mineable coins that would be available in the market every 10minutes would reduce by half. Currently, about 12.5btc are produced per block reward and after the halving event, it will become 6.25btc.
Why is this interesting?
This is one of the questions I believe you might be having at this point, and the answer is simple- it's an opportunity to make more money from holding bitcoin. A more complex explanation would be that the amount of supply entering the system will suddenly shrink, but the demand will, in theory, stay the same, possibly driving up the cryptocurrency’s price.
The event has inspired passionate debate about bitcoin price predictions and how the market is poised to respond.
While we are all jumpy and excited about the possible cash-out opportunity, one other thing to note is that hypothetically, the inconsistent decline in Bitcoin’s minting rate could have a deeper significance than any current price action in the market.