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Bitcoin’s 2016 Halving: What is It and Why Should You Care? Although it may sound like a pagan ritual which includes the sacrificing of virgins and opening gateways to parallel worlds, the block halving event is real and it’s important. The supply of Bitcoin is finite Whenever a miner solves a Bitcoin block he gets Bitcoins as a reward, that’s how Bitcoins come into this world. So if today each miner receives 25 Bitcoins for solving a block, after the halving event he will receive only 12.
Of course the fact that 21 million Bitcoins have been generated doesn’t mean that there are actually 21 million Bitcoins that can be spent. Why should you even have a halving event? The main reason why this is done is to keep inflation under control. Bitcoin, on the other hand, is intended to simulate a commodity, like gold.
There is only a limited amount of gold in the world, and with every gram of gold that is mined, the gold that still remains becomes harder and harder to extract. As a result of this limited supply, gold has maintained its value as an international medium of exchange and store of value for over six thousand years, and the hope is that Bitcoin will do the same. So when will the next halving occur? Having said that, some community members have noticed that in fact, since the creation of Bitcoin, a new block has been created every 9 minutes and 20 seconds on average and not every 10 minutes as presumed. Taking that into account, the next halving will be on July 9, 2016. How will the Bitcoin halving effect the bitcoin economy?