Bitcoin Nears Halving Event, Less Than 100  Blocks Remaining

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The Bitcoin halving is expected to occur around 8 p.m. ET on April 20 (approximately midnight UTC), as each Bitcoin block takes around 10 minutes to be mined. When the Bitcoin network generates its 840,000th block, the reward for mining a new block will decrease from 6.25 Bitcoins to 3.125 Bitcoins.

The Mechanics and History of Bitcoin Halvings

Bitcoin’s automatic reduction of rewards for miners occurs roughly every four years, or after the mining of 210,000 blocks. This process, known as a halving, decreases the reward by half as part of Bitcoin’s plan to control its supply and create scarcity.

The process of Bitcoin’s halving events will continue until approximately 2140 when all Bitcoins are mined. At that point, miners will only generate income through transaction fees. We’re now approaching the fourth occurrence of this event, with under 100 blocks left before it takes place.

100 blocks remain until #Bitcoin halving

— Aden Herz (@AdenHerz) April 19, 2024

After Bitcoin was launched, there have been three previous instances of a process called halving. This happened in the years 2012, 2016, and more recently in 2020. During these events, the reward for mining a new block of Bitcoins was gradually reduced from 50 BTC to its current level of 6.25 BTC. The upcoming halving will decrease this reward again, this time to 3.125 BTC per block.

The Bitcoin system limits the number of coins in circulation to a maximum of 21 million, ensuring its value remains stable against inflation in the long run.

The economic policy under consideration has the power to affect the mining community significantly by changing profitability levels. Consequently, this may influence Bitcoin’s market price and shape investor behavior. As we draw nearer to the upcoming halving event, the cryptocurrency world keeps a keen eye on any possible shifts in mining patterns and resulting market reactions.

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2024-04-19 19:00