Today, April 20, the fourth halving took place in the Bitcoin network at block 840,000. It halved the reward for each mined block from 6.25 BTC to 3.125 BTC. About this informs Cointelegraph.
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This is a programmed process in the Bitcoin protocol that occurs every 210,000 mined blocks, roughly every four years.
Three halvings took place in 2012, 2016, and 2020, leading to a significant drop in mining rewards. The first Bitcoin halving took place in 2012, when the block mining reward was reduced from 50 BTC to 25 BTC.
The main purpose of the Bitcoin halving is to manage the deficit and regulate the inflationary supply of the first cryptocurrency. The mechanism was built into the code by the founder of Bitcoin under the pseudonym Satoshi Nakamoto.
By cutting the mining reward in half, this process actually slows down the rate at which new bitcoins are created. The system will run until around 2140, when the last bitcoin is mined.
Also Read: Bitcoin Halving Coming Soon: How It Will Affect Miners and BTC Price
How Bitcoin reacted to the halving
Bitcoin reacted calmly to this event without significant changes. At the time of writing, the price of the asset is around $64,220. Over the day, Bitcoin has increased by 3%, but for the week, the drop is 4.77%. This is evidenced by CoinMarketCap data.
It is worth noting that in 24 hours the largest growth among cryptocurrencies with the largest capitalization was demonstrated by:
We will remind
“Minfin” wrote that JPMorgan analysts predicted a fall in the bitcoin price after the halving.
