Bitcoin undergoes its fourth halving: Rewards for mining new blocks on the Bitcoin network are now reduced by half, following the creation of the 840,000th block.
Bitcoins price is generating excitement within the cryptocurrency community as they anticipate future developments, with some analysts estimating potential prices up to $250,000.
Currently, Bitcoin is priced at $63,960 according to information from CoinMarketCap, marking a 1.16% increase in value over the previous 24-hour period.
Starting today, each mined Bitcoin block will yield 3.125 BTC in rewards for miners, a decrease from the prior 6.25 BTC.
Every four years, or approximately after every 210,000 blocks are mined in the Bitcoin system, an automatic event called a halving occurs.
The last three halvings occurred in 2012, 2016 and 2020, leading to significant drops in mining rewards over time. The first Bitcoin halving occurred in 2012 when the reward for mining a block was reduced from 50 to 25 BTC.
The primary goal of Bitcoin’s halving is to control the scarcity and prevent excessive inflation of Bitcoin through a pre-programmed mechanism. This feature was integrated into the Bitcoin system by its anonymous creator, known as Satoshi Nakamoto, during the coding process.
Reducing Bitcoin mining rewards by half results in a decrease in the production speed of new Bitcoins.
The system will continue until roughly 2140 when all Bitcoin is mined.
Some significant Bitcoin miners are making preparations for an upcoming event. For instance, Marathon Digital has disclosed its intention to purchase a Bitcoin mining site in Texas with a capacity of 200 megawatts (MW) for approximately $87.3 million.
In December 2023, Riot Platforms, a major Bitcoin mining competitor, made a significant expansion by purchasing a massive order of 66,560 mining rigs from MicroBT.
M2 CEO Stefan Kimmel told CryptoMoon:
The Bitcoin halving is a pivotal event that historically signals a shift in the market, usually initiating a bullish trend over the following months. As we approached the fourth halving, the anticipation built, suggesting a continued—if slightly more subdued—upward trajectory.
In the crypto world, some expect price fluctuations in the near future. However, many still hold a positive outlook regarding Bitcoin’s long-term value.
According to Tim Draper, a billionaire investor speaking with CryptoMoon, he firmly believes that the upcoming Bitcoin halving will significantly contribute to increasing its price beyond $250,000 – a prediction he has repeatedly made, most notably in 2022.
“The simple reason that Bitcoin price goes up after the halving is that the supply goes down, and with continued upward pressure on demand, the price goes up naturally in a free market.”
At the same time, Herbert Sim, also known as “Bitcoin Man,” shared with CryptoMoon that several factors influence the prediction of Bitcoin’s price.
He pointed out that reducing the price by half isn’t the sole factor to consider in the market movement. The Bitcoin ETF’s recent approval in Hong Kong may significantly influence the price as well.
“The big banks of China will all have to start buying Bitcoin themselves too,” Sim stated.
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2024-04-20 03:22