What You Need To Know Ahead of The Bitcoin Halving
Bitcoin's next halving event is expected to take place Friday or Saturday.
The event will halve the current bitcoin block subsidy from 6.25 to 3.125 bitcoin.
Previous halving events sparked bitcoin price moves to new all-time highs in the months that followed. This time around, the price of bitcoin already surged to record highs last month ahead of the halving event, the first time that has happened.
As bitcoin miner revenue declines over time, experts say the industry will need to move towards a model based on transaction fees rather than the issuance of new bitcoin.
The bitcoin halving—in which the amount of newly issued bitcoin created roughly every ten minutes is cut in half—is expected to take place on Friday or Saturday. In the past, this event has been followed by a significant rise in the price of bitcoin, but analysts are divided over whether that will occur this time around.
Bitcoin (BTC) already hit all-time highs above $73,000 last month, the first time record highs have been hit ahead of a halving event, though the price has retreated in recent weeks. On Thursday morning, bitcoin was trading around $63,500, after dropping below $60,000 on Wednesday.