The Next Bitcoin Halving Is Scheduled for April 2024, Here’s Why It’s Important

Bitcoin, the first cryptocurrency ever invented, is the most expensive crypto asset that has been ruling the sector since its inception in 2009. At the time of its creation, its anonymous creator, known by the pseudonym Satoshi Nakamoto, limited the total supply of Bitcoin. At 21 million tokens. This essentially means that if the number of Bitcoins in supply reaches 21 million no more Bitcoin tokens will be generated. To prevent this from happening, the process of ‘Bitcoin halving’ happens at regular intervals.

The Bitcoin halving process occurs after every 210,000 blocks are mined on the Bitcoin blockchain. After a halving, the block reward received by miners is halved – this reduces their incentive to mine Bitcoin blocks and slows down the pace of adding new coins to the network. The halving process occurs roughly every three to four years – that’s how long it takes to mine the 210,000 blocks on the Bitcoin blockchain. Following the creation of Bitcoin in 2009, the first halving process took place in 2012. At that time, the reward for mining Bitcoin went from 50 BTC to 25 BTC.

In the second and third halving processes that took place in 2016 and 2020, the incentive for BTC mining increased from 25 BTC to its current price of 6.25 BTC. bitpanda Tracks the history of Bitcoin halvings.

Bitcoin is currently trading at a price point of $42,812 (approximately Rs 35.5 lakh), 6.25 BTC amounts to $269,465 (approximately Rs 2 crore) – which is the reward value for Bitcoin miners. In total, the Bitcoin halving event is only going to happen 64 times – as specified in the coding compiled by Satoshi Nakamoto.

Significance of Bitcoin Halving in 2024

With about two months away, market analysts predict that the price of Bitcoin will rise, followed by many other cryptocurrencies. The year following the halving is when BTC recorded the most growth in value.

In April this year, the total number of Bitcoin blocks mined will reach 840,000. With this, the BTC reward value for miners may drop to 3.125 BTC or $133,956 (approximately Rs 1.1 crore).

Bitgate said in a recent study that investors’ predictions about the price of Bitcoin around the fourth halving appear to vary across different markets. About 53 percent of investors globally expect the price to fluctuate between $30,000 (roughly Rs. 24.8 lakh) and $60,000 (roughly Rs. 49.7 lakh), while 30 percent believe it will cross the $60,000 mark. Will cross.

Affiliate links may be automatically generated – see our ethics statement for details.

(TagstoTranslate)Bitcoin Halving 2024 Explainer Cryptocurrency(T)Bitcoin(T)Bitcoin Halving

Leave a comment