Even though governments around the world thought that the lifespan of cryptocurrencies would be short since they already have a good financial system, they were wrong.
There are a lot of events that led up to the rise and fame of Bitcoin and they are all explained by the bitcoin circuit app so we recommend you to check it out. We wanted to focus on some of the less-known things about this cryptocurrency and explain them as best as we can. Let’s start with the one term that no one knows what it means – halving.
What is Bitcoin Halving?
Bitcoin halving is an event that occurs every four years. The next event of this kind was scheduled in May this year. During this time, the pace of bitcoin creation is cut in half. The first Bitcoin event was held in 2012. The miners go from earning 12.5 Bitcoins per block, to 6.25.
For the people that are unfamiliar with the term Bitcoin block – this is a file storing 1mb worth of transaction records made with the cryptocurrency. With each mined block, miners are rewarded with newly created Bitcoins. The amount of the reward varies a lot, and halvings are programmed to occur after 210,000 blocks are mined. This process takes four years to complete.
This event is both praised and criticized by Bitcoin experts. While some believe that the halving has a net positive for the price of Bitcoins, others believe that it can bring harm to the Bitcoin ecosystem. One thing is for sure though, there are pros and cons to both sides.
Let’s check out some of the other less-known facts about this cryptocurrency.
One of the biggest advantages that Bitcoin has is that it’s not controlled by anyone. As a currency, it's highly decentralized. This is a very important feature for the people that are using it because they can escape some hidden administrative fees implemented by the authorities. The decentralization played a key part in its quest for fame.
Many people were open to the idea of trading with Bitcoin because it was extremely safe and cost-effective. The biggest boom happened in late-2017 when Bitcoin's value peaked at almost $20,000.
It’s Anonymous and Optimized for Online Use
You may have not known this, but all people who trade with Bitcoin are anonymous. Their real identity is hidden and all transactions are hard to track. That's one of the reasons why governments oppose it so hard. One other big advantage is that Bitcoin is fully optimized for online use. All transactions made with it are instant, unlike credit and debit cards who go through several steps of verification.
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