In the Bitcoin 2016 blocks network, user transactions are grouped in blocks and recorded to a digital public ledger called a blockchain. The amount of bitcoins rewarded for each block decreases with time: it is halved every 4 years.
This event, the moment when the mining reward is divided by 2, is commonly called “Bitcoin halving”. Other denominations are used: “reward drop”, “reward halving”, or simply “the halving” or “the Halvening” which is a popular meme among bitcoiners. When Bitcoin was created in 2009, the initial reward was 50 bitcoins. In november 2012, it dropped to 25btc after the first halving. The second halving will take place in July 2016, decreasing the reward to 12.
WHAT IS THE IMPACT ON BITCOIN PRICE? As any freely traded asset, Bitcoin price depends solely on demand and supply. The evolution of bitcoins supply is hard coded and is known to everyone, so it all depends on the evolution of demand. Bitcoin being a very young currency with much room to grow in use and value, I would personally bet on a price increase. Note that other examples of halvings are available for comparison. The first Bitcoin halving occurred on the 28th of November 2012.
More recently, the Litecoin, a Bitcoin clone, passed its first halving on August 25th, 2015. What is certain for this second Bitcoin halving is that similar wild, speculative, short-term rallies and crashes will occur. The interesting observation will be, on a larger time-scale, to see if the up-trend that Bitcoin price has been experiencing since its inception in 2009 will continue its path. This web page is connected to several web APIs to provide real-time data about the Bitcoin network. The new block announcement is obtained through a websocket established with blockchain. The spot price is provided by Bitstamp web API.
Welcome to Crypto Insider, Business Insider’s roundup of all the bitcoin and cryptocurrency news you need to know today. Bitcoin keeps coming back in the headlines. With any Bitcoin price change making news and keeping investors guessing. In countries that accept it, you can buy groceries and clothes just as you would with the local currency.
Bitcoin is divorced from governments and central banks. It’s organized through a network known as a blockchain, which is basically an online ledger that keeps a secure record of each transaction and bitcoin price all in one place. Every time anyone buys or sells bitcoin, the swap gets logged. Several hundred of these back-and-forths make up a block. No one controls these blocks, because blockchains are decentralized across every computer that has a bitcoin wallet, which you only get if you buy bitcoins. True to its origins as an open, decentralized currency, bitcoin is meant to be a quicker, cheaper, and more reliable form of payment than money tied to individual countries. A 2015 survey showed bitcoin users tend to be overwhelmingly white and male, but of varying incomes.
The people with the most bitcoins are more likely to be using it for illegal purposes, the survey suggested. Each bitcoin has a complicated ID, known as a hexadecimal code, that is many times more difficult to steal than someone’s credit-card information. And since there is a finite number to be accounted for, there is less of a chance bitcoin or fractions of a bitcoin will go missing. But while fraudulent credit-card purchases are reversible, bitcoin transactions are not.