- Bitcoin has completed its fourth halving event upon reaching its 840,000th block, reducing miner rewards from 6.25 BTC to 3.125 BTC per block.
- The Bitcoin halving is a programmed process that occurs every 210,000 blocks (roughly every four years) to manage Bitcoin’s supply and regulate inflation.
- Major Bitcoin miners like Marathon Digital and Riot Platforms have been preparing for the halving event, with some experts predicting it could push Bitcoin’s price to $250,000 or higher due to reduced supply.
The fourth Bitcoin halving event has now occurred, reducing miner rewards from 625 BTC to 312.5 BTC per block. This landmark occasion effectively slows the inflation rate of new Bitcoin entering circulation.
What is the Bitcoin Halving?
The Bitcoin halving is a programmed process that happens every 210,000 blocks mined, equating to roughly every four years. This mechanism halves the mining rewards, managing scarcity and regulating Bitcoin’s inflationary supply. It was built into Bitcoin’s code by its pseudonymous founder Satoshi Nakamoto.
A Look Back at Previous Halvings
The first Bitcoin halving occurred in 2012, when the reward for mining a block dropped from 50 to 25 BTC. The second halving was in 2016, reducing it further to 12.5 BTC. The third halving happened in 2020, bringing the reward to 6.25 BTC prior to the latest halving.
Impact on Miners and Bitcoin Price
Major Bitcoin mining companies like Marathon Digital and Riot Blockchain have been actively expanding operations ahead of the reduced block rewards. While the halving may shake up the mining sector in the short-term, historically the events have preceded bullish market moves. Investors remain optimistic about Bitcoin’s long-term trajectory.
What’s Next for Bitcoin?
Some industry experts predict the halving will help propel Bitcoin’s price to $250,000 or higher. The reduced supply paired with continued demand points to an upward trend. However, the price will also depend on other factors like regulation and institutional adoption. The community eagerly awaits to see how the market responds over the coming weeks and months.
