Bitcoin (BTC) halvings are one of the most important events that have taken place since the launch of the leading cryptocurrency in 2009. Since then, there have been a total of three halves, with the block reward halved each time. The next Bitcoin halving will occur in 2024. As the fourth halving approaches, we will take a look at how this affects the supply of BTC and thus the value of the cryptocurrency.
The fourth halving is approaching
Bitcoin halving is scheduled to occur every 210,000 blocks and the next halving prediction is set on May 4, 2024 based on the current rate at which BTC is mined. Currently, just over 19 million BTC has been mined. This shows that there are only 2 million BTC left to be mined. With each halving, the daily output and supply decreases. It is expected to drop further with the next halving, where each block reward will be only 3,125 BTC. This helps ensure that the supply of Bitcoin decreases over time, making it one of the key features of the network’s monetary policy.
Miner figures working on group of bitcoins.cryptocurrency mining concept. Bitcoin halving has several effects on cryptocurrency. One of the ways these effects are more pronounced is with mining difficulty. Granting less BTC to miners for each block leads to tougher competition, causing the mining difficulty to increase rapidly. This is evident in the trend following the last Bitcoin halving in 2020. Similarly, Bitcoin’s hash rate is increasing as miners need more computing power to mine blocks. How will
affect Bitcoin price?
One of the notable things about the current state of the network is the low fees. While Bitcoin is in the midst of another halving, transaction fees have remained close to all-time lows. This is said to be the result of more efficient use of the block as there is no evidence of a decline in the economic use of the network.
However, there is one thing that always remains consistent in all Bitcoin halvings. It’s also the effect on price. There are expectations that the price will suffer at this point. However, a halving that reduced the supply of circulating BTC has always been the trigger for the next bull rally, and 2024 is expected to be no different.
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