As a seasoned researcher who has witnessed the evolution of the digital currency landscape over the past decade, I find myself both awestruck and intrigued by the 12th anniversary of Bitcoin’s first halving event. The resilience and adaptability of the Bitcoin mining ecosystem in the face of dwindling rewards and escalating difficulty levels are nothing short of remarkable.
12 years ago today marked the initial halving event for Bitcoin, the most significant digital currency in terms of market value, which resulted in a reduction of block rewards from 50 units of Bitcoin to 25 units.
After three additional reductions in rewards, the Bitcoin block rewards – what crypto miners receive for confirming Bitcoin (BTC) transactions and maintaining network security – have decreased to 3.125 BTC. This significant reduction has curtailed the amount of newly minted Bitcoin added to the market.
The 12th anniversary of Bitcoin’s halving occurs as Bitcoin trades near its record peak of approximately $99,600, reached on November 22, with some of this momentum stemming from the most recent Bitcoin halving that took place in April.
To mark the annual event commemorating the initial Bitcoin halving, CryptoMoon took a look back at significant Bitcoin timelines and shifts within the mining community.
1.2 million BTC left to mine
Currently, as of November 27th, approximately 19.8 million Bitcoins are in circulation, and there are around 1.2 million more yet to be mined before the total supply reaches its capped limit of 21 million coins.
One essential aspect of the Bitcoin network lies in its limited supply of 21 million coins, a design feature intended to create a sense of rarity or scarcity for the digital asset.
Although the 1.2 million BTC amount is small relative to the amount of already mined Bitcoin, the mining process of the rest of BTC will require more time and effort from miners due to dropping incentives and increasing mining difficulty.
For the very first time on November 5th, the Bitcoin mining difficulty rate surpassed 100 trillion and was recorded at approximately 102.3 trillion, as per data from MinerStat. The next anticipated adjustment in this difficulty is estimated to occur on December 2nd.
Bitcoin miners are far from capitulating, as BTC sets new price records
Regardless of the increased complexity in Bitcoin mining and reduced payouts per block, Bitcoin miners remain steadfast, driven by the continuous surge in the value of the cryptocurrency market.
As I pen this analysis, Bitcoin is currently exchanging hands at approximately $95,364 – a remarkable 154% surge over the past year, as indicated by data from CoinGecko. Notably, since the last Bitcoin halving event on April 20, 2024, its value has seen a substantial increase of around 45%.
As an analyst, I’ve observed that despite the surge in US dollar-denominated block rewards due to Bitcoin’s rise in 2024, miners have been proactively cutting costs and integrating artificial intelligence, as suggested by a report published by European crypto investment firm CoinShares.
This year, the Bitcoin mining sector has encountered substantial difficulties, as both revenue streams and hash rates have decreased, according to a report published by CoinShares in October.
Last July, the Bitcoin mining company TeraWulf was contemplating a merger because the profit margins were low when the price of Bitcoin hovered approximately around $56,500.
This year, some prominent cryptocurrency mining companies, such as Marathon Digital, have offloaded substantial quantities of mined Bitcoins following the fourth halving, with the aim of enhancing efficiency and maintaining competitiveness. Additionally, Marathon has adopted a proactive approach to Bitcoin acquisition, revealing a $250 million offering for convertible senior notes in August.
Contrarily, El Salvador is intensifying its search for Bitcoin mining alternatives that utilize geothermal energy from its volcanoes.
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2024-11-28 17:20