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E326-The Halving: What is it and How does it work
Season 1 Episode 326
This is an AI generated Episode that will discuss a video, podcast or read an article. The provided sources, all transcribed from YouTube videos, offer an overview of the Bitcoin halving, a programmed event that occurs approximately every four years, or every 210,000 blocks mined. The halving is described as the process of cutting the block subsidy—the reward given to Bitcoin miners for successfully validating a block—in half, which in turn reduces the rate at which new Bitcoin enters the circulating supply. Experts clarify that the halving is not a stock split and does not affect the quantity of Bitcoin a holder owns, but rather is a crucial mechanism designed to limit supply, thereby making Bitcoin scarce like gold and contributing to its long-term value. The sources explain the history of the block subsidy reductions and discuss the economic implications, such as the potential for upward price pressure due to reduced supply and the importance of transaction fees eventually replacing the block subsidy as the primary incentive for miners to secure the network. Finally, the sources contrast Bitcoin's predictable, programmatic monetary policy with the discretionary nature of central bank monetary policy. .Want to read the article your self? Check the original source:
- https://youtu.be/qoOfikLKbDY
- https://youtu.be/Ye9ckbN_lqc
- https://youtu.be/rT3szqSykVU
Published on 2 weeks, 5 days ago