- A Bitcoin halving occurs when the mining incentive for Bitcoin transactions is cut in half.
- Analysts are counting the days before the fourth halving event of BTC.
- Halving maintains steady and predictable supply new BTC entering the market.
Bitcoin halving is an event where the bitcoin blockchain reward gets cut in half. This happens roughly every 4 years. The last Bitcoin halving occurred on 11th May in the year 2020.
In a post on Twitter today, Lark Davis tweeted saying that there are 684 days left until the next Bitcoin halving which is expected to occur on April 4, 2024.
The first BTC halving took place in November 28th, 2012. The main purpose of Bitcoin halving is to keep a steady and predictable supply of new Bitcoins entering the market to avoid inflation.
Bitcoin price usually increases in the months leading up to halving as investors buy in anticipation of increased demand for Bitcoin after the event.
Miners receive a fee of 6.25 BTC for each Bitcoin block mined in the current era, which began after the third halving event on May 11, 2020. The daily average of 144 blocks, which indicates that roughly 900 BTC is generated and given out every day, was taken.
The fourth halving event will ‘halve’ this incentive and bring its value down to 3.125 BTC per block. Every day, roughly 450 BTC in rewards will be dispensed if the daily average of blocks remains the same.
On the other hand, some market analysts are of the opinion that the BTC halving could lead to a new bull run in the cryptocurrency market. The last two Bitcoin halving have each been followed by a bull run. Although the halving has been of great effects in the Bitcoin bull market, last month the digital asset failed Microstrategy with unrealized loss of over $1 billion.
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