Today marks a significant event in the world of cryptocurrency as Bitcoin experiences its fourth scheduled halving. This event, known as the halving, occurs approximately every four years and has far-reaching implications for the Bitcoin ecosystem. As Bitcoin Magazine prepares for a halving livestream, powered by Kraken, to commemorate this event, it’s crucial to understand what the halving is and why it’s so important.
The 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 roughly every four years. The halving is encoded into Bitcoin’s protocol to control its inflation rate and ensure that only 21 million bitcoins will ever be mined, making it a deflationary asset.
In the very beginning of Bitcoin’s history, the first block reward was 50 BTC. After subsequent halvings in 2012, 2016, and 2020, the block reward has now been cut in half to 3.125 BTC per block. The next halving is expected in 2028, cutting the reward down to 1.5625 BTC per block. Bitcoin will continue to cut its new supply creation in half until there is no more bitcoin left to be mined, which is currently slated for the year 2140.
The halving event is significant for several reasons. Firstly, it directly impacts the supply of new bitcoins entering circulation, leading to a gradual decrease in the available supply and driving Bitcoin’s value proposition as a store of value. Secondly, the halving has historically been associated with bullish price movements, with previous halvings leading to substantial increases in Bitcoin’s price.
Bitcoin has increased around 743% since the last halving in 2020, reaching an all-time high of $73,790 on March 14, 2024. Market participants are expecting another increase in the price of BTC, fueled by strong institutional demand for the asset.
To celebrate this momentous occasion, Bitcoin Magazine is hosting a halving livestream event tonight, powered by Kraken. The livestream will feature key players in the Bitcoin industry and celebrities, reflecting on the past and looking towards the future of Bitcoin. The winners of the Nitrobetting Bitcoin Halving 1 BTC prize challenge will also be announced during the event, showcasing the growing interest and engagement surrounding Bitcoin and its halving events.
