🥳 #Bitcoin just completed its fourth halving, so let me explain what that means in concrete terms and what to expect for the future, since I haven't talked about it since.
🎊 The halving is the most important event that consists of halving the reward per block mined in the Bitcoin network, that is, halving the salary of miners while increasing the difficulty of mining.
🧩 The reward was 6.25 BTC per block just an hour ago and now it will be 3.125 BTC. You know, a block is generated every 10 minutes, so per day we distribute 900 BTC to the miners, which creates a selling pressure of 58 million every day.
From now on, this selling pressure drops to 29 million, significantly reducing inflation. However, the difficulty of mining increases, so miners will need to invest in more powerful machines to remain competitive. This will result in an increase in electricity and equipment costs, thereby increasing the production cost of #BTC.
📊 However, this halving will raise the average production cost of one BTC to about $38,000. Therefore, miners are not interested in the price reaching these levels again; Otherwise, they would draw at a loss and no trader would sell at a loss.
ℹ️ During the last halving, the price of BTC was at $8,000, and 4 years later we are at $65,000. 🚀🚀🚀
❓️The question is where this price will be in the next halving in 2028. I'll leave you with that thought for you to answer in the comments.
