Bitcoin has completed its fourth Halving event after reaching block 840,000, reducing the mining reward to 3.125 BTC per block from the previous 6.25 BTC.
The design of Bitcoin dictates a limited supply of 21 million BTC, with the reward halving every 210,000 blocks. This fourth Halving event marks the fourth occurrence, with previous ones in 2012, 2016, and 2020.
The impact of Halving may result in short-term fluctuations in the price of Bitcoin, as miners’ rewards decrease. However, historical data shows that Bitcoin’s price has increased significantly post-Halving, with prices reaching $12.50, $638.51, and $8,475 per BTC during the first three occurrences, respectively. Currently, Bitcoin is trading at $63,567 post the fourth Halving event.
Source: CNBC
TLDR:
Bitcoin completed its fourth Halving event, reducing the mining reward to 3.125 BTC per block. The limited supply of 21 million BTC and the Halving mechanism every 210,000 blocks contribute to the significant price fluctuations of Bitcoin, which has historically shown an increase after each Halving event.
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