A cryptocurrency is a digital or virtual currency that is secured by cryptography,
which makes it
nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks
based on blockchain technology a distributed ledger enforced by a disparate network of computers.
A defining feature of cryptocurrencies is that they are generally not issued by any central authority,
rendering them theoretically immune to government interference or manipulation. - Jake Frankenfield
The first crypto currency was bitcoin created in 2008 by an anonymous character named Satoshi
Nakamoto. Satoshi Nakamoto created Bitcoin because they wanted to create a “trust-less” cash
system. Satoshi explicitly stated that the reason for creating this digital cash system is to remove
the third party intermediaries that are traditionally required to conduct digital monetary transfers.
Bitcoin’s anonymous inventor Satoshi Nakamoto decided that only 21 million BTC would ever exist.
They wanted new coins to be released gradually into the market but at the same time, it was crucial
for a generous supply of Bitcoin to start circulating sooner rather than later.
New BTC are given to Bitcoin miners as their Bitcoin block reward when they verify blocks of
transactions. To begin with, the reward stood at 50 BTC per block. This would have been worth
under a dollar back in 2009, but at today’s rates (May 5th), 50 bitcoin would be worth $695,000AUD
Such generous terms wouldn’t last forever. Under Bitcoin’s rules, rewards would only stay this high
for the first 210,000 blocks, and then they would be cut by 50%. By this point, half of the BTC that
would ever exist 10.5 million were out in circulation.
For this upcoming Bitcoin halving (also known as halvening), the total number of Bitcoin mined by
miners per block will be reduced from 12.5 BTC to 6.25 BTC. This happens about every 4 years
and the last bitcoin will be mined in the year 2140. - coinmarketcap
Lots of people with money invested in cryptocurrencies are very excited about the Bitcoin Halving because
a few months after the previous Bitcoin halvings, Bitcoin has risen to its ATH (all time high) which is great
because it means bitcoin is consistent and a good investment.