When Satoshi Nakamoto – whoever he or she is – set up bitcoin in 2009, he did so with the aim that the digital currency would be better in practically every way than the fiat currencies that came before it. Not only would the currency protect holders against theft by private citizens, but it was also hoped that it would eliminate the current monetary policy that slowly inflates the government money, decreasing its value in real terms.

The way Nakamoto envisioned doing this was simple: over time the difficulty of mining new coins would go up, slowly converging on a level so high that no further coins could be minted. Nakamoto hard-coded the bitcoin system to limit the total number of bitcoin that could exist through a series of halving events, with the two most recent in 2012 and 2016. These halving events reduced block rewards every time a miner added a block to the bitcoin blockchain.

Read more: https://coinlu.com/bitcoin-halving-2020-3-things-you-need-to-know/