Bitcoin has completed its fourth halving event, reducing miners’ block rewards by half, from 6.25 to 3.125 BTC. Scheduled to occur every 210,000 blocks or approximately every four years, this halving slows down the rate of Bitcoin creation.
With miners receiving 50% fewer BTC, daily production drops to 450 BTC compared to the previous average of 900 BTC. The past three halvings in 2012, 2016, and 2020 have substantially decreased mining rewards over the last decade. The initial halving event in 2012 saw block rewards decrease from 50 to 25 BTC.
The recent halving took place at block height 840,000, with the next expected around block height 1,050,000, likely in the first quarter of 2028. Halvings will continue until approximately 2140, when the final Bitcoin is mined.
The impact of this halving event on the cryptocurrency industry has been widely anticipated. Bitcoin miners, in particular, have been adjusting their strategies in response to the reduced rewards. Some miners in the United States have upgraded their equipment to remain profitable, while others have relocated their operations.
Speculation abounds regarding how this halving will affect Bitcoin’s price. Historically, Bitcoin has experienced positive price performance in halving years, leading to bullish projections, with some suggesting prices could soar to $1 million. However, there are also bearish outlooks, with predictions of a potential decline to $42,000 due to increased production costs and mining difficulties.
While Bitcoin’s recent performance has been mixed, investors hope the halving event will act as a catalyst for renewed growth. Enthusiasts anticipate this optimism spreading to the broader crypto market, driving other major assets upward.
Featured image from: siamblockchain.com