Bitcoin Halving has been completed. What occurred during this event and what can we expect in the future?
The recent halving event has resulted in a reduction of the issuance rate of new bitcoin to 3.125 approximately every ten minutes. These halvings occur every four years or after every 210,000 validated blocks, and have been a fundamental aspect of the Bitcoin network since its inception in 2009.
As a consequence of the halving, the reward given to miners for validating each new block of transactions has been halved. This reward, known as the block subsidy, now stands at 3.125 bitcoin. Additionally, miners also collect transaction fees associated with the included transactions.
It is worth mentioning that the 840,000th block, which marked the halving, was mined by ViaBTC. However, the true impact of this halving on the network and the market is yet to be determined.
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By AMY FONTINELLE Updated April 20, 2022
Reviewed by KHADIJA KHARTIT
Fact checked by SUZANNE KVILHAUG
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Savings accounts provide a secure place to store your money as they are backed by the Federal Deposit Insurance Corporation (FDIC) for bank accounts or the National Credit Union Administration (NCUA) for credit union accounts. The FDIC and NCUA guarantee deposits up to $250,000 per depositor, per institution, and per account ownership category.
As a result, individuals do not need to worry about losing their deposits in the event of their bank or credit union becoming insolvent. If you have received additional funds through an inheritance, a work bonus, or the sale of your house, you may be considering other safe options to keep your cash, in addition to a savings account.
Safe Options for Saving Your Money
Certificates of deposit (CDs) and U.S. government securities are both relatively secure investment options. While these choices can provide some return on your investment, if your primary concern is the safety of your money, you may prioritize liquidity and low fees over high returns.
KEY TAKEAWAYS
Savings accounts are a secure place to store your money as they are backed by the FDIC for bank accounts or the NCUA for credit union accounts.
Deposit insurance for savings accounts covers up to $250,000 per depositor, per institution, and per account ownership category.
Certificates of deposit (CDs) issued by banks and credit unions also come with deposit insurance.
U.S. government securities, such as Treasury notes, bills, and bonds, have historically been considered extremely safe due to the U.S. government’s track record of never defaulting on its debt.
Certificate of Deposit (CD)
Certificates of deposit (CDs) issued by banks and credit unions also come with deposit insurance. The main distinction between a savings account and a CD is that a CD requires you to lock in your investment for a specific period of time.
It is crucial for investors to carefully consider their investing timelines before purchasing U.S. government securities, as selling a security before it matures can result in financial loss.
