What is Bitcoin halving? How can it stir crypto markets?

cnbctv18.com:

Halving is one of the most important events for the Bitcoin Blockchain. It happens once every four years and has implications for almost every stakeholder within the Bitcoin Ecosystem. To date, there have been 3 Bitcoin Halving events (in 2012, 2016 & 2020), and each of them has caused quite a stir.

But what is Bitcoin halving, and how does it work? To find out, we must first understand how the Bitcoin blockchain functions!Bitcoin was the first blockchain to come into existence. It uses the Proof-of-Work consensus mechanism to process transactions. Under the PoW consensus mechanism, users can dedicate their computing power to the blockchain to qualify as bitcoin miners.

Their computation power is used to execute complex mathematical computations that decrypt and validate transaction data. The output of this process is a random 64-digit string of characters called a 'hash.'Every time a certain number of transactions is processed, the data is bundled together and added as a ‘block’ on the blockchain. Each block on the blockchain contains approximately 1 MB of transaction data.

Once a block is added, it can neither be reversed nor tampered with. Upon adding each block, miners receive a certain number of bitcoins (BTC) as their mining reward.Also Read:Budget 2022 is death of cryptocurrency in India: Rakesh JhunjhunwalaEvery time a miner adds a block, they are rewarded with new Bitcoins. This is how the number of Bitcoins in circulation increases.