“The Indonesian police have cracked down on 10 illegal Bitcoin mining rigs in the country, Seizing above 1000+ Bitcoin machines and claiming an Electricity theft nearing $1million “.....

Source : Cointelegraph.

This was the news reported via secure channels about the crackdown of 10 Bitcoin mining rigs in the country following Electricity theft. But first, let's find out what this means to us..

WHAT IS BITCOIN MINING

Bitcoin mining is the process of verifying and validating transactions of blocks on the Bitcoin Blockchain. What do I mean by this??

Remember that when you buy something from a grocery store, a sales ledger is kept to verify the transactions that took place, the ledger is the blockchain and the process of verifying that these transactions on the ledger actually took place is what we call MINING..

Bitcoin mining is done with a mix of high tech hardware and software and since its in a ledger that uses Cryptography (Blockchain secure encryption), all the miner has to do is to find the specified cryptographic signature identical to that transaction and they get paid.

These miners receive an incentive for contributing to the blockchain by helping validate transactions on the blockchain….

You might ask, why mine Bitcoin, it's because it is the process by which new cryptocurrency is put into circulation. Without transactions being verified, the total market supply of Bitcoin wouldn't change and therefore there would be no price changes and no trading volume and no use for bitcoin..

HOW DOES THIS RELATE TO THE BITCOIN HALVING

Well, the Bitcoin halving relates to a halving of the incentives for verifying transactions on the Bitcoin blockchain. This is essentially changing the miners reward to half its value and it is done every four years.

This halving has been going on since the first Bitcoin was mined in 2009 and as at then, the miners incentive was priced at 50BTC, which was halved to 25BTC 4 years later and so the trend continued till its current value of 6.25BTC since the halving in may 2020 and this should be halved again sometime this year, in 2024.

HOW DOES THIS AFFECT THE MARKET

There are a considerable number of Bitcoin miners in the world and with each verification, a considerable amount of Bitcoin is released into the market for circulation and with the impending halving, there should be a decrease to this market addition which would in turn lead to high demand with lower supply leading to a steep hike in Bitcoin’s price in what the crypto community terms as the “BULLRUN”.

Following the market dynamics of finance and economics, a lot of money would be made and a lot of money would also be lost.

In view of this, there is an expected increase in Blockchain interactions and cryptocurrency trading within the Crypto community facing this year.
All crypto currencies are expected to see an increase in trading volume and possible supply.

When we meet again, we would discuss some of the most popular crypto regulations available at the moment, until then…. Do have a nice day..

CIAO