Friday, July 10, 2020

Know what is Bitcoin Holding and what is its Effect?

Know what is Bitcoin Holding and what is its Effect, bitcoin holding

In digital currency bitcoin, there is a phenomenon called 'Holving'. After this event the prize of unlocking a block of bitcoin is decided. In general, the prize money decreases to half after each holving. Let's know bitcoin holding and its effect .

What is Bitcoin

Bitcoin is a virtual currency. It is also called digital currency. Bitcoin is a currency that you can neither see nor touch. It is stored in electronic form only.

What is Bitcoin Holding

The award of its products is decided by bitcoin holding every four years. Actually, bitcoin is not printed like rupee or dollar. Rather it is manufactured through computer. This work is called mining and those who do this work are called miners. These minors create bitcoins by solving complex math puzzles, which in turn reward them.

The prize money is halved on each holding

The occurrence of bitcoin holding varies every four years. The prize money is halved after each event. The prize money at the time of the first event in 2012 was 50 bitcoins which has now come down to 6.25 bitcoins in 2020.

Hollowing occurs every four years

The occurrence of bitcoin holding occurs after every four years. The first occurrence of holving occurred in November 2012 after the creation of Bitcoin in 2009. The second incident followed in July 2016 and the third in May 2020. The fourth incident of holving is expected in May 2024.

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How long will the hauling process be

There are a total of 64 incidents of hollywood in the Bitcoin world, of which only four have been completed so far. Only 21 million i.e. 21 million bitcoins can come in the market all over the world. According to one figure, only 17 million bitcoins are in the market so far. It may take up to 2140 years for 21 million bitcoins to come to market.

Hollowing occurs after every 2.1 lakh blocks unlocked.

Hawling occurs normally after every 2.1 lakh blocks are unlocked. This event will continue until the prize for unlocking the block is zero.

Decreases production after holving

The bulk of the new supply of bitcoins in the market comes only from minors (producers of bitcoins). Bitcoin mining is affected by the reduction of prize money after holving. This leads to a lack of supply of new bitcoins in the market. Prices go up as new bitcoins are not introduced. The number of bitcoin producers will decrease as the prize money decreases. They will be attracted to other highly profitable cryptocurrencies. This will increase the price of bitcoin.

Impact on investors

Bitcoin holding does not have any effect on the existing investors of bitcoin. The reason for this is that holving does not affect the price of bitcoin, rather the phenomenon is related to the production of bitcoin.

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