It is known that around May 20, 2020, the third halving of Bitcoin will take place. Every 10 minutes 50% fewer bitcoins will be produced, which may change its value.

It has already happened twice, each time increasing the price by at least 10 times. Despite the increased interest in bitcoins and the cryptocurrency as a whole, few people are talking about it.

So today we will look at what "halving" is and what it can lead to.

Halving is the process of splitting the number of generated awards for block mining by half. It is necessary for network functioning to maintain the total number of bitcoins not exceeding 21 million. Accordingly, this day is called "halving".

Of course, the block awards are the main motivator of bitcoin mining and the principal force of the network. Bitcoin blocks are, in fact, parts of the bitcoin block, where all transactions are recorded.

Each block is associated with a mathematical task, and the bitcoins miners continuously use equipment to record transactions and solve these tasks. However, with the growing number of award-winning maintainers, this task is becoming more and more difficult to solve.

Halving is designed to prevent inflation, as only a limited number of bitcoins can be created, making it more like Gold than a national currency (compared to central banks that can simply print more bills).

Halving bitcoin occurs every 210,000 blocks and reduces the reward by 50% each time in geometric progression and it is planned by the height of the block, not by date, so it is known that the 210,000th block falls on May of this year (+/- 20th).