The Bitcoin network has achieved another significant milestone on its journey towards reaching its maximum supply of 21 million bitcoins. At 11:06 a.m. Eastern Time (ET) on April 29, 2023, precisely at block height 787,500, the number of blocks left until the next Bitcoin halving has dwindled to less than 52,500 blocs. This development indicates that the network has traversed 75% through the 210,000-block halving cycle, which will ultimately culminate in a reduction of the block reward from 6.25 bitcoins per block to 3.125 bitcoins per block.
Bitcoin Halving: A Brief Overview
The Bitcoin blockchain divides its block reward by two every 210,000 blocks, which happens approximately every four years. Bitcoin has recorded three halvings so far, with the first one taking place on Nov. 28, 2012. Prior to the first halving, Bitcoin miners received 50 BTC for every block they discovered, and after the halving, it was slashed to 25 BTC. The second halving took place on July 9, 2016, decreasing the block subsidy to 12.5 BTC, and the third halving occurred on May 11, 2020, reducing the reward to the current 6.25 bitcoins per block.
The 75% progress mark was achieved at block height 787,500, and currently, there are just 52,465 blocks left to explore until the halving. Bitcoin’s halving is expected to occur on or around April 22, 2024, although some estimates vary by a few days. With 6.25 bitcoins per block today, Bitcoin’s inflation rate per annum is 1.71%, but after the next halving, it is expected to be 0.84%. Statistics reveal that about 900 bitcoins are generated daily, and at the current BTC exchange rate, miners accrue approximately $26,335,800 every day.
The Countdown Begins
At block height 787,500, Bitcoin’s network had accomplished 75% of the halving cycle. With only 52,500 blocks left to explore, the countdown to the next halving is well underway. Bitcoin’s halving is expected to occur on or around April 22, 2024, although some estimates vary by a few days.
Bitcoin’s inflation rate per annum is currently at 1.71% with 6.25 bitcoins per block. However, after the next halving, it is expected to drop to 0.84%. This reduction in the inflation rate could have a significant impact on Bitcoin’s value in the long term.
Statistics indicate that around 900 bitcoins are generated every day, and at the current BTC exchange rate, miners accrue approximately $26,335,800 every day. The reduction in the block reward will significantly impact the profitability of Bitcoin mining, making it harder for miners to earn rewards.
The Next Halvings
While Bitcoin’s halving is the most well-known, other proof-of-work blockchains also undergo reward reductions. The Dash network is expected to undergo a reward reduction in less than 53 days from now. The reward cut is not an official halving, but a decrease in the block reward from 3.11 DASH to 1.56 DASH per block.
Litecoin (LTC) will experience a reward halving in less than 95 days from now. The LTC network will witness its reward sliced by half from 12.5 LTC to 6.25 LTC on or around Aug. 3, 2023. Litecoin’s halving is similar to Bitcoin’s, as it also happens approximately every four years.
In conclusion, the Bitcoin blockchain halving is a significant event that occurs every four years, reducing the block reward by half. As of block height 787,500, the network has traversed 75% of the 210,000-block halving cycle, and there are only 52,465 blocks left to explore until the halving occurs. With the reduction in block rewards, the inflation rate will decrease, making Bitcoin a more scarce asset. Other cryptocurrencies, such as Dash and Litecoin, will also undergo reward reductions in the coming months, further emphasizing the importance of halving events in the crypto world. As Bitcoin continues to gain traction and mainstream adoption, these halving events will likely attract more attention and have a greater impact on the crypto market.
Q1: What is a Bitcoin blockchain halving?
A1: The Bitcoin blockchain halving is an event that occurs every four years, reducing the block reward by half. This event is designed to limit the supply of Bitcoin and make it a more scarce asset.
Q2: When is the next Bitcoin blockchain halving?
A2: The next Bitcoin blockchain halving is expected to occur on or around April 22, 2024, although some estimates vary by a few days.
Q3: How many Bitcoin halvings have occurred so far?
A3: Bitcoin has undergone three halvings so far, with the first one taking place on Nov. 28, 2012, the second on July 9, 2016, and the third on May 11, 2020.
Q4: What happens to the block reward after a Bitcoin blockchain halving?
A4: The block reward is reduced by half after each halving, making it a more scarce asset and limiting its supply.
Q5: How does a Bitcoin blockchain halving affect the price of Bitcoin?
A5: The price of Bitcoin is influenced by a variety of factors, and a halving event is just one of them. However, historically, halving events have been associated with significant price increases, as the reduction in block rewards makes Bitcoin a more valuable and scarce asset.
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