Bitcoin has now successfully underwent its fourth half event, with miners’ block rewards being halved again (from 6.25 to 3.125 BTC). Bitcoin halving (also known as “halving”) is scheduled to occur every 210,000 blocks, or approximately every four years.
With miners expected to receive 50% less BTC, the rate of Bitcoin creation will also be slowed. Miners will now produce 450 BTC per day, compared to a daily production average of 900 BTC before the halving.
The previous three halvings took place in 2012, 2016, and 2020, significantly reducing mining rewards over the past decade. In 2012, the first halving event saw the reward for mining a block drop from 50 to 25 BTC.
While the latest Bitcoin halving occurred at a block height of 840,000, the next one is expected at a block height of 1,050,000 (most likely in Q1 2028). The halving will continue until around 2140, when the last Bitcoin will be mined.
How Will Bitcoin Halving Impact the Crypto Space?
This halving of Bitcoin was one of the most anticipated events of 2024 in the cryptocurrency industry. Specifically, major players in the BTC mining industry have been preparing for this event, given its apparent impact on their primary revenue streams.
As reported on Bitcoinist A few weeks ago, several Bitcoin miners in the United States tried to adapt to the new life following the Bitcoin halving. The report mentions how these companies are moving their old mining equipment out of the United States and upgrading it to more efficient equipment to ensure profitability.
In addition, there was broad and interesting speculations on the impact of the latest halving on the price of Bitcoin. From a historical perspective, the leading cryptocurrency tends to show positive price performance during the middle half of the year.
As a result, the crypto community has seen several bold and bold bullish projections for the price of Bitcoin this year. Notably, Samson Mow, CEO of Jan3 and Bitcoiner, believes that BTC could reach as much as $1 million after the halving event.
At the same time, a bearish outlook was also observed for the market leader after the halving. Specifically, major investment bank JPMorgan predicted that Bitcoin could drop to $42,000 after being cut in half due to increased production costs and mining difficulties.
Although Bitcoin has struggled To replicate its positive first-quarter performance over the past few weeks, investors are hoping that the halving event will be enough of a catalyst for the cryptocurrency to deliver on its early promise. Meanwhile, enthusiasts will expect the new optimism to spread to the broader crypto market, propelling other major assets higher.
Bitcoin Price at a Glance
At the time of writing, the Bitcoin price stands at around $63,526, reflecting a 2.6% increase over the past 24 hours.
Bitcoin price at $63,655 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
