Crypto News – As Michael Saylor has often pointed out, the halving is now closer than ever. And the closer it gets, the harder it is to predict Bitcoin’s price.
With Bitcoin Halving Less Than 10 Days Away, What’s Ahead for Miners and Traders?
When the blockchain was first introduced in 2009, miners could have gotten a massive 50 BTC block reward. In November 2012, it fell to 25 BTC, and then in July 2016, it fell by 50% more to 12.5 BTC. After the third halving in May 2020, rewards have decreased to single digits (6.25 BTC per 10 minutes), and each block now generates just 3.125 BTC.
For miners, there is both good and bad news. A daily supply of just 450 Bitcoin is accessible due to the halving that takes place in April 2024; this is a significant decrease from the 7,200 BTC that was available 15 years prior. Positively speaking, nevertheless, this cryptocurrency’s value has skyrocketed. 3.125 Bitcoin is currently valued at hundreds of thousands of dollars in conventional currency.
Bitcoin Mining is Laborious and Costly
It costs money to mine Bitcoin. Hardware must be updated frequently because winning block rewards requires a lot of electricity and processing power. As you can see below, increases in the price of BTC have been able to counteract the effects of each halving thus far.
Because there is less cryptocurrency available, miners must minimize expenses to maintain their financial viability. The transaction fees that users of the blockchain pay will grow in importance as a source of revenue over time. This does not necessarily imply that consumers must pay eye-watering prices for daily transactions.
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