Today marks a major event as bitcoin undergoes its fourth scheduled halving. This event, also known as a halving, occurs approximately every four years and has far-reaching implications for the bitcoin ecosystem. As bitcoin Magazine prepares for a halve live streamingenergized by KrakenTo commemorate this event, it is essential to understand what the halving is and why it is so important.
What is bitcoin Halving?
bitcoin halving refers to the process by which the reward for mining new blocks on the bitcoin blockchain is reduced by half. This reduction occurs approximately every 210,000 blocks, or approximately every four years.
Not all bitcoins were released to the market at the same time, but bitcoin miners slowly mine new coins every day as a reward for mining new blocks on the blockchain. The halving is coded into bitcoin's protocol to control its inflation rate and ensure that only 21 million bitcoins are mined, making it a deflationary asset.
At the beginning of bitcoin's history, the first block reward was 50 btc. After the first halving in 2012, the block reward was halved to 25 btc per block, and then halved again in 2016 to 12.5 btc per block, and again in 2020 at 6.25 btc per block. Now, the block reward will be halved to 3.125 btc per block, with the next halving expected in 2028, reducing the reward to 1.5625 btc per block.
bitcoin will continue to reduce the creation of new supply by half until there are no more bitcoins left to mine, which is currently scheduled for the year 2140 in May.
Importance of Halving
The halving event is important for several reasons. First, it directly affects the supply of new bitcoins entering circulation. With the reduction of the block reward, the pace of creation of new bitcoins slows, leading to a gradual decrease in the available supply. This scarcity is a fundamental factor driving bitcoin's value proposition as a store of value.
Second, halving has historically been associated with bullish price movements. Previous halvings, such as those in 2012 and 2016, were followed by substantial increases in the price of bitcoin. This pattern is partly attributed to reduced supply coupled with sustained demand, creating a potential imbalance that favors price appreciation.
bitcoin has risen around 743% since the last halving in 2020, rising from ~$8,755 to an all-time high of $73,790 on March 14, 2024. While past performance is no guarantee of future results, participants in the Market expect to see another rise in btc price as strong institutional demand for the asset comes from recently approved bitcoin exchange-traded products in the United States, Germany and Hong Kong, as well as the London Stock Exchange which is preparing to offer physical bitcoin exchange-traded notes. .
bitcoin Magazine and Kraken Halving Live Stream
To celebrate this momentous occasion, bitcoin Magazine is hosting a halving livestream event tonight, powered by Kraken. This livestream, which will feature key players in the bitcoin industry such as Strike CEO Jack Mallers as well as celebrities such as Dave Portnoy, will delve into the top 21 moments from the latest bitcoin era, highlighting important milestones and developments within of the bitcoin ecosystem.
Live streaming is not just about reflecting on the past; It's also about looking to the future of bitcoin. The winners of the Nitrobetting bitcoin Halving 1 btc prize challenge will also be announced during the event, showing the growing interest and engagement around bitcoin and its halving events.
The live stream can be found. here.
