Finance & Stock Market
The Following Bitcoin Halving Is Set for April 2024: Why Is It Important?
By - 08 Feb 2024 10:28 AM
The most costly cryptocurrency asset to dominate the market since its launch in 2009 is Bitcoin, the first cryptocurrency ever created. When Bitcoin was first created, its anonymous creator—known only by the pseudonym Satoshi Nakamoto—capped the number of tokens in circulation at 21 million. This basically indicates that once there are 21 million Bitcoin in circulation, no more will be created. A regular process known as "Bitcoin halving" takes place to prevent that from occurring.
The Bitcoin blockchain undergoes a halving process every 210,000 blocks are mined. Following a halving, miners' block rewards are cut in half, which lessens their incentive to mine Bitcoin blocks and stifles the flow of new coins into the network. It takes three to four years for the process of halving to occur because that is how long it takes to mine 210,000 blocks on the Bitcoin blockchain. The first Bitcoin halving process took place in 2012, following its creation in 2009. The payout for mining Bitcoin decreased to 25 BTC at that time from 50 BTC.
The reward for mining bitcoin decreased from 25 bitcoin to its current price of 6.25 bitcoin during the second and third halving processes, which took place in 2016 and 2020. BitPanda records the history of Bitcoin halving.With Bitcoin currently trading at $42,812 (approximately Rs. 35.5 lakh), the reward value for Bitcoin miners is 6.25 BTC, or $269,465 (approximately Rs. 2 crore). As stated in the code that Satoshi Nakamoto compiled, the Bitcoin halving event is only planned to occur 64 times in total.
