Bitcoin Halving: Why Bitcoin Halving Matters

Bitcoin Halving: Why Bitcoin Halving Matters
  • 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

Tags:
disclaimer read more

Crypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.

Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.

programmer & freelance writer