Bitcoin (BTC) has successfully completed its fourth halving event, reducing mining rewards from 6.25 BTC to 3.125 BTC per block. This programmed process occurs every 210,000 blocks or approximately every four years. The previous halvings occurred in 2012, 2016, and 2020, resulting in significant decreases in mining rewards. The purpose of halving is to manage scarcity and regulate the inflationary supply of Bitcoin. By reducing mining rewards, the creation of new Bitcoin is slowed down. This process will continue until around 2140 when all Bitcoin is mined.
The crypto community eagerly anticipates the effects of the halving on Bitcoin’s price, with some predictions reaching as high as $250,000. Currently, Bitcoin’s price stands at $63,960, showing a 1.16% increase in the past 24 hours, according to CoinMarketCap data.
Major Bitcoin miners, such as Marathon Digital and Riot Platforms, have been preparing for the halving event. Marathon Digital plans to acquire a 200MW Bitcoin mining facility in Texas, while Riot Platforms recently purchased 66,560 mining rigs. These expansions reflect the industry’s confidence in Bitcoin’s long-term potential.
Billionaire investor Tim Draper believes that the halving will contribute to pushing Bitcoin’s price to $250,000 or more. He has consistently expressed this forecast, particularly in 2022. Additionally, the recent approval of the Bitcoin ETF in Hong Kong is expected to have a significant impact on the price. Herbert Sim, also known as “Bitcoin Man,” highlights the potential involvement of Chinese banks in buying Bitcoin, further influencing its price.
In conclusion, the Bitcoin halving has occurred, reducing mining rewards and regulating the supply of Bitcoin. The crypto community awaits the effects on Bitcoin’s price, with optimistic long-term predictions. Factors such as the approval of the Bitcoin ETF in Hong Kong and the potential involvement of Chinese banks are expected to impact Bitcoin’s price.