Andrea Alms Video:  Money In Motion 89 - What Is It?... Bitcoin Halving

TRANSCRIPT

Hello, my name is Andrea Alms and I'm technology Investor, financial Manager. And this is your money in motion. What is it - the most digital event on blockchain? Bitcoin is happy when the reward of mining is cut in half. Since 2020, the network participants validating transactions have been awarded 6.25 bitcoins for each block successfully mine the next having is expected to occur in early to mid 2024 when the block reward will fall to 3.125.

Basics of Bitcoin. Bitcoin's Underlying Technology. Blockchain consists of a network of computers called notes that run Bitcoin software and contains a partial or complete history of transactions occurring on its network. Each full computer or node. A node contains the entire history of transactions on Bitcoin is responsible for approving or rejecting a transaction on Bitcoins that do that. The computer never conducts a check to ensure the transaction is valid.

This includes ensuring that the transaction has correct validation parameters and does not exceed the required right. Each transaction is an individual that is the same only occurs after the transaction contains a block or group. After approval, the transaction is amended to the existing blockchain and broadcast to other computers for note basics of Bitcoin. Bitcoin mining is the process by which people use computers or mining hardware to participate in Bitcoin Blockchain network as a transaction processor or validate.

Bitcoin uses a system called proof of work POW to validate transaction information. It's called proof of work because it solving the encrypted hash takes time and energy. This acts as proof that the work was done. The term mining is not used literally, but a reference to use precious of how precious metals are hurt when a block is filled with transactions is closed and sent to a mining queue.

Once it is queued up for verification. The bitcoin miners who keep be the first to find a number with a value less than that of a hash. The hash is a hexadecimal number that contains all of the encrypting information of the previous block. Mining confirms the legitimacy of the transaction in a bar and opens a new night. A new one, a computer that verifies the transaction.

Further, in a series of confirmation, this process contains a chain of blocks of information forming the blockchain. What is Bitcoin having after the network mines? 210,000 blocks, roughly one every four years. The block reward given to Bitcoin miners for processing transactions was cut. This event is called Havoc because it cuts the rate at which new bitcoins are released into circulation and how this reward system will continue until about 2100 for when the proposed limit of 21 million coins is reached.

At that point, miners will be rewarded with fee for processing transactions, which network users will pay. These fees ensure miners are so incentivized to participate in the network. The having event is significant because it marks another drop in the rate of new bitcoins produced as it approaches its finite spot. There have been three having, as of October 20, 23, November 28, 2012 to 25 Bitcoin July nine, 2016 to 12.5 Bitcoins May 11th 2020 to 6.5 Bitcoin.

The bottom line Bitcoin having cut the rate at which new bitcoins are released into circulation into the reward system, is expected to continue until the year 2140, when the proposed limit of 21 million bitcoins is theoretically reached in 2009. The reward for each bitcoin in chain with the Bitcoin for the first having it was five and 4.5 and it will become an it then became 6.25 bitcoins for block as of May 11th 2020.

Bitcoin have it having has major implication for example for miners that having events will result in a consolidation in their rent as individual miners and smaller outfits drop out of the mining ecosystem or taken over by larger players. Thank you. This is your money. Your money in motion.