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Bitcoin's second halvening has occured, as scheduled.

posted Jul 11, 2016, 2:31 AM by Barny CK   [ updated Jul 11, 2016, 7:31 PM ]

Digital currency Bitcoin has undergone a second halvening since its inception. Moving right along, for each block mined, Bitcoin miners will now reap 12.5 Bitcoin units. This is down from 25.0 Bitcoin units previously mined. The first halvening occured in 2012 when Bitcoin units per block was halved from 50.0 to 25.0 units.

By design, this was meant to happen. As opposed to a centralised economy whose monetary base is controlled by a central bank, Bitcoin is a decentralised monetary system. There is no central authority that will regulate the monetary base, hence a system was put in place to regulate and control the currency supply.
In a centralised economy, a central bank controls the supply of money by printing banknotes whereas in a decentralised system like Bitcoin, miners supply the money or units by mining.

A mining activity essentially is the processing of all Bitcoin transactions worldwide which are grouped into blocks. By mining, Bitcoin units are created which will then be rewarded to the miners as incentives for the job done. Previously, by mining 1 block of transactions, miners get 25 Bitcoin units. Now, it is 12.5 Bitcoin units. This halving is the rule which was initially laid out when Bitcoin first started and is crucial to keeping a finite amount of Bitcoin units that will ever be in circulation.

Thus far, approximately 420,000 blocks have been mined since the beginning, generating over 15 million Bitcoin units. Bitcoin will eventually have a final total of 21 million units, which it is expected to reach by the year 2140. Since its introduction, the currency value have also risen astronomically. At press time, 1 Bitcoin unit equals USD 649.45.

Bitcoin was created by Satoshi Nakamoto in 2009 as a cryptocurrency and implemented as open source code. The currency now has a market capitalization of approximately USD 10 billion.