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| Bitcoin Halving Approaches: Block Reward Subsidy to be Cut in Half in Less Than 400 Days |
Bitcoin, the world’s largest cryptocurrency, is less than 400 days away from its next reward halving. The Bitcoin network is currently fewer than 56,000 blocks away from the event, which will reduce the block reward by 50%. Currently, the block subsidy is 6.25 bitcoins, but after the next halving, it will be cut to 3.125 bitcoins per block. The event is scheduled to take place anywhere between April 21-28, 2024, depending on block time speeds.
Bitcoin halves its block reward every 210,000 blocks mined, roughly every four years. The last halving occurred in May 2020, and the upcoming one will be the fourth halving event. The first halving occurred in November 2012, and the second one in July 2016. After the April 2024 halving, the fifth halving is expected to occur in 2028. The halving reduces the inflation rate per annum of Bitcoin, which is currently 1.71%, to 0.84%.
The current block reward of 6.25 bitcoins is valued at over $177,000 per block using today’s BTC exchange rates. If the price of BTC remains the same after the halving, the block reward would be valued at $88,500 per block. However, network participants expect the price of BTC to increase by the time of the next halving. Regardless of the price, miners’ revenues will be cut in half, and they will have to adjust accordingly.
In addition to Bitcoin, Litecoin is also expected to see a block reward halving this year. The event is estimated to occur on August 3, 2023, reducing Litecoin rewards from 12.5 LTC to 6.25 LTC. Dash network is also expected to see a reward reduction in 84 days, shrinking the reward from 2.763 DASH to 2.566 DASH. The upcoming halvings in the cryptocurrency market indicate that the industry is maturing, with mining becoming increasingly competitive and resource-intensive.
Overall, the upcoming halvings in the cryptocurrency market are significant events that are expected to impact the entire industry. With Bitcoin’s halving inching closer, miners and network participants are bracing themselves for the event and adjusting their strategies accordingly. Despite the uncertainty surrounding the price of BTC at the time of the halving, the event is expected to increase the asset’s scarcity and potentially drive up its value.
