The Halving has officially happened: What happens now? Eyes on Bitcoin
The expected halving in Bitcoin has officially happened. Block rewards to miners were halved at the 840,000th block at 03:09 Turkish time. Accordingly, miners will earn 3.125 BTC instead of 6.25 BTC from block rewards until the next halving in 2028. Thus, the amount of Bitcoin produced per day has also been capped at 450 BTC, down from 900 BTC. Everyone in the cryptocurrency market has been waiting for this day. After the previous halving in 2020, investors were waiting for 2024. The 4-year wait ended as of today and the halving was completed without any disruption.
How will the halving affect Bitcoin?
-Halving is a mechanism that allows Bitcoin to have predictable inflation. Halving happens every four years, gradually slowing down the rate at which new Bitcoins are released. This rule, established by Bitcoin's creator Satoshi Nakamoto, ensures that Bitcoin is a deflationary asset.
In the short term, the amount of Bitcoin produced per day will drop from 900 BTC to 450 BTC, reducing the selling pressure from miners. In the medium and long term, half as many Bitcoins will be released than before. This is expected to have a positive impact on the price.
Looking at the past, the rises seen after the halving stand out. Bitcoin increased by 9 thousand percent in the 12 months after the first halving in 2012. In 2016, this was 375 percent, while in 2020 it was 600 percent. Bitcoin's post-halving rises led to a link between halving and price increases.
Investors are eagerly waiting to see how Bitcoin's price will follow after the last halving we left behind.
