Bitcoin experienced its fourth reduction of rewards for miners in its blockchain system. The number of Bitcoins received as a reward for mining a new block has been decreased by half (from 6.25 to 3.125 BTC). This event, known as the “Bitcoin halving” or “the halvening,” is engineered to occur approximately every four years, after 210,000 blocks have been mined.
After the Bitcoin halving, miners will earn 50% less BTC, resulting in a decreased production rate. Instead of creating 900 BTC each day on average, they will now mine approximately 450 BTC daily.
Over the past ten years, there have been three major reductions in mining rewards, which took place in 2012, 2016, and 2020. In 2012, the reward for mining a single block was cut in half from 50 to 25 Bitcoins during the first halving event.
The most recent Bitcoin halving took place at block number 840,000. The next estimated halving is predicted to occur around block number 1,050,000 (approximately in Q1 of 2028). This process of halving the reward for mining new Bitcoins will continue until approximately 2140, at which point all 21 million Bitcoins will have been mined.
How Will Bitcoin Halving Impact The Crypto Space?
In the crypto world of 2024, the Bitcoin halving was a highly anticipated occurrence. Miners, who are essential players in the Bitcoin market, had been gearing up for it. The reason? This event significantly impacts their primary source of income.
According to a Bitcoinist article from a few weeks ago, some American Bitcoin miners have been making adjustments in response to the Bitcoin halving. They’re getting rid of their outdated mining equipment and replacing it with more efficient models to keep earning a profit.
In addition, many intriguing discussions have emerged regarding the effect of the recent Bitcoin halving on its price. Historically, Bitcoin has typically seen price growth during the year following a halving event.
This year, the cryptocurrency world has been abuzz with daring and confident predictions about Bitcoin’s price increase. For instance, Jan3 and Bitcoiner CEO Samson Mow envision Bitcoin reaching an astounding $1 million after the halving event occurs.
Simultaneously, some analysts have expressed pessimistic views about the market leader after the halving event. For instance, JPMorgan, a prominent investment bank, anticipates that Bitcoin’s price could drop to $42,000 due to higher production expenses and mining challenges following the halving.
Bitcoin’s strong start in Q1 has not been sustained lately, but investors remain hopeful that the upcoming halving event will revitalize the cryptocurrency and keep its early promise. Simultaneously, supporters anticipate this renewed enthusiasm will extend beyond Bitcoin, boosting other significant crypto assets.
Bitcoin Price At A Glance
Currently, Bitcoin is priced at approximately $63,526, representing a 2.6% rise over the previous 24-hour period.
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2024-04-20 10:11