What is Halving? How it works ?
The literal translation of the English word " Halving Means halve.
Indeed, halving refers to the event which consists in halving the reward, or remuneration, of mining a cryptocurrency.
And the Helium will not be spared these halving phases, the company Helium has announced that their halvings will occur every 2 years from the official launch date of the project.
The next deadline will be August 1, 2021. The next one will be operated 2 years later (days for days)
What will this change for us minors?
Currently Helium distributes 5,000,000 M HNT Tokens each month distributed among all the global hotspots (27,766 hotspots today). When the halving is over, we will only be able to receive 2'500'000 M still distributed among all the hotspots in place. The maximum supply of the HNT being 223,000,000 M.
This means in short that if currently 1 of your hotspots brings you 200HT / month, after the August 1, 2021 your hotspot will only earn you 100NT / month.
You tell yourself suddenly that you arrived a little late in the project, and that your profitability will not be sufficient? Wrong answer.
Note that this project is still very recent and that the phenomenon of mass adoption is clearly not yet present for Helium.
To reassure you a little, I'll let you see the example below -> Effect of Halving on Bitcoin :
It is clearly noted that after each phase of Halving, the price of BitCoin has only increased, why? Phenomenon of supply and demand.
Some Stats
Shortest price the HNT has known: $0.11
Current price: $12.68
6710.9% gain over the past year
Let's assume that your mined HNTs will be halved, but if by the time the price of the HNT is x4 you will then make 100% of additional earnings over what you had anticipated.
Initially, the HNTs distributed monthly at the start of the project and in large quantities also allow Helium to develop faster (greed) and to extend their network as quickly as possible.
Edit 04/26/2021: Also take into account that the distribution of HNTs is distributed among all hotspots on the network and online. The more hotspots there are, the more the gains will be distributed.
Contents
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Tutorial on the Helium network, the full point!
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