Imagine you have a big piggy bank, but instead of coins and notes, it’s filled with digital money called Bitcoin. Something big is about to happen to this digital piggy bank next week, around April 20th, called the Bitcoin Halving.
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- Next week, the number of new Bitcoin computers made will be cut in half, from 6.25 to only 3.125 for each puzzle they solve.
- The Bitcoin Halving will make Bitcoin rarer, which could excite more people.
- Learning about Bitcoin Halving is cool because it helps us see why Bitcoin is not like regular money and might be worth more over time.
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The Bitcoin Halving: A Crucial Event for Investors
Long ago, a mysterious person named Satoshi Nakamoto invented Bitcoin and decided that every four years, the amount of new digital money made by computers would be cut in half. This year, the computers will get only 3.125 new bitcoins instead of 6.25 for solving puzzles. This ensures that not too much Bitcoin is made too quickly, like ensuring you don’t eat all your candy simultaneously so it lasts longer.
Satoshi wanted Bitcoin to be special and not like regular money that governments can make more of whenever they want. By making less and less Bitcoin over time, it becomes more rare, like a limited edition toy, which can make it more valuable.
Mining is how new Bitcoin is made, where computers solve tricky puzzles. But after the halving, making new Bitcoin will be harder because the reward is smaller, and it might not be worth it for some people to keep their computers running. This could change who decides to mine Bitcoin and make it a little harder to get new ones.
Bitcoin is a digital treasure that is different from regular money because there’s only so much of it, and it doesn’t belong to any country or bank. If you think Bitcoin and other cool tech are cool, you don’t want to stop learning now! Join our newsletter to get the latest updates on digital money, amazing science facts, and much more.
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