There are only a few hours left until the next Bitcoin halving is activated on the blockchain network.
At block height #840.000 of the Bitcoin network, the reward miners receive for creating a block on the chain will be reduced to 3,125 BTC.
So far, miners, who are responsible for verifying transactions and generating new blocks on the blockchain network, receive 6,25 BTC, about $390.000 at the current cryptocurrency price, as a reward for generating new blocks.
However, every certain number of blocks mined, 210.000 blocks specifically, this reward is halved.
At the 2024 halving, the Bitcoin block reward will be reduced from 6,25 BTC to 3,125 BTCSpecifically, the estimated date for block #840.000 to be mined and, therefore, for the new halving to occur, is April 20.
An automated event
The halving is an automated event that is scheduled to occur on the Bitcoin blockchain every time 210.000 blocks are mined. The last halving of the network took place on May 11, 2020, at block height #630.000.
According to the rate of creation of new blocks in the chain, Halving occurs approximately every 4 years. Each time this event takes place, a new reward period is created for the network's miners, which continues until the next 210.000 blocks are mined.
Without the halving, all the bitcoins that will ever exist in the world, 21 million units, would have been created in the first 8 years of the blockchain network's life. However, thanks to this automated event, the total of BTC that will ever exist on the chain will be put into circulation in the year 2140, so in total, 34 halving events will occur.
A new opportunity for Bitcoin appreciation
In addition to reducing the block reward and slowing down the creation of new bitcoins, the halving is also considered an important catalyst for the appreciation of the cryptocurrency in the market.
According to experts, with the arrival of a new halving event, Bitcoin holders will also encounter a new bullish trend, as this event could significantly influence the rise in the price of BTC, by limiting the rate of issuance of the cryptocurrency and making it scarcer on the market.
After the halving, the amount of new bitcoins generated in the network blocks is reduced, limiting supply and creating a potential opportunity for its revaluationMoreover, considering the presence of spot ETFs, which have caused a stir in the markets since their approval last January, the halving could lead to higher Bitcoin prices.
However, while there is a potential for Bitcoin to grow after the halving, other analysts believe that the current macroeconomic environment could moderate the impact of this event on the cryptocurrency's price. On the other hand, the halving could immediately affect miners' profitability, which could lead to the exit of the less efficient ones and, therefore, decrease the network's hash rate.
Bitcoin search interest increases ahead of halving
The halving is one of the most important events in the crypto ecosystem and one of the most interesting for both Bitcoin holders and investors, as well as people in general. According to data from Google Trends, search interest for terms such as “Bitcoin”, “Halving” y “Halving Bitcoin” has increased significantly in recent weeks as this historic event approaches.
Source: Google Trends
Likewise, data from Google's trends query tool reveals that people's interest in the impact that the halving could have on the price of BTC is also increasing, with searches such as “What is the Bitcoin halving?”, “When is the Bitcoin halving 2024?” y “should i buy bitcoin before halving” (should I buy bitcoin before the halving?), experiencing substantial growth in the last few hours.
At the close of this edition, the block #839.840 of Bitcoin was mined, leaving only 160 blocks left to mine before the fourth halving.
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