On November 28, 2012, exactly 10 years ago, the first Bitcoin halving took place.
The Bitcoin halving is an event scheduled to occur every 210.000 blocks, approximately every 4 years, on the most important blockchain network in the crypto industry and which aims to Halving the block reward that Bitcoin miners receive for his work on the network.
This is one of the most important events in the design of Bitcoin. Every time a halving occurs, the level of issuance of new bitcoins is reduced. and because of this, the halving can have a positive effect on the future price of the cryptocurrency.
In fact, according to Pantera Capital analysts, previous Bitcoin halvings have had a significant and positive impact on the price of BTC. After the first Bitcoin halving occurred, the supply of BTC on the market decreased. However, the demand for the cryptocurrency remained stable, causing the price of BTC to skyrocket by over 9.200%. This increase led Bitcoin to reach a price of $1.132 per unit in the months following the first halving.
Based on the above data, the investment fund analysts believe that The next and fourth halving that will take place on the Bitcoin network, which is estimated for April 20, 2024, could boost the price of BTC by more than 300% in the market, after the event. If history repeats itself, the price of BTC may reach a target of $148.000 per unit, the analysts indicated.
Source: Pantera Capital
Cryptocurrency blogger Colin Wu commented on his Twitter account that, on average, the market has taken 1,3 years to see the impact of a halving and to peak after the arrival of this event.
From 6,25 BTC to 3,125 BTC
Today, for each block that miners create on the Bitcoin network, approximately every 10 minutes, they receive a reward of 6,25 BTC. However, with the arrival of the fourth halving of the network, this reward will be reduced by half, establishing a new block reward for network miners of 3,125 BTC.
Source: Bit2Me Academy
The total emission of Bitcoin is approximately 21 million coins, according to the immutable design of the protocol created by Satoshi Nakamoto. Also, It is estimated that 34 halvings will occur in total before reaching this maximum number of bitcoins that will ever exist.
Why is the Bitcoin halving important?
As mentioned above, the halving is one of the most important events in Bitcoin's design, as it is how the network controls its circulating supply.
It should be noted that Bitcoin was designed with a deflationary emission rate, which will decrease over the years until it reaches zero. Thus, although 99,9% of the bitcoins that will exist will be in circulation in the market in the next 20 years, the last BTC will be mined from the network in approximately the year 2140. After this, miners will not receive any block rewards from the network, but only the commission fees from the BTC transactions they process.
$10.000 USD for a Bitcoin
Another important milestone in the history of Bitcoin was on a day like today, November 28, 2017, when the price of Bitcoin reached $10.000 per unit for the first time.
Source: CoinMarketCap
Bitcoin is currently trading at around $16.200 per unit. The current price of the cryptocurrency represents an increase of 62% compared to its price 5 years ago. However, so far in 2022, the Bitcoin and cryptocurrency market has been marked by a series of negative events that have contributed to an overall drop of 60% since last January.
Continue reading: Harvard advises central banks to accumulate Bitcoin
IMPORTANT: The content of this article is for informational purposes only and, in no case, what is written here should be taken as investment advice or recommendations. Bit2Me News reminds you that before making any investment you should educate yourself and know where you invest your money, as well as the pros and cons of the system. We separate ourselves from the actions and consequences that ignorance may entail. If you decide to invest in this or another asset class, you are solely responsible for the consequences that your decisions and actions may have.
