Bitcoin halving is happening: today supply drops to 3.125 BTC.

Today marks a significant event as Bitcoin experiences its fourth scheduled halving. Also known as halving, this event occurs approximately every four years and has far-reaching effects on the Bitcoin ecosystem. As Bitcoin Magazine prepares for a halving live stream presented by Kraken to commemorate this event, it is important to understand what halving is and why it is so important.

What is Bitcoin Halving?

Bitcoin halving refers to the process in which the reward for mining a new block on the Bitcoin blockchain is halved. This decline occurs approximately every 210,000 blocks, or approximately every four years.

Not all Bitcoins hit the market at the same time, but rather Bitcoin miners are slowly mining new coins every day as a reward for mining new blocks on the blockchain. Halving is encoded into the Bitcoin protocol to control the inflation rate and ensure that only 21 million Bitcoins are mined, making it a deflationary asset.

Early in Bitcoin history, the first block reward was 50 BTC. After the first halving in 2012, block rewards were halved to 25 BTC per block, then halved again to 12.5 BTC per block in 2016, and again to 6.25 BTC per block in 2020. The block reward is now being halved to 3.125 BTC per block, with the next halving expected in 2028, which will reduce the reward to 1.5625 BTC per block.

Bitcoin will continue to halve its new supply until there are no more Bitcoins left to mine (currently scheduled for May 2140).

Importance of Half Life

This halving event is important for several reasons. First, it directly affects the supply of new bitcoins in circulation. As block rewards decrease, the rate at which new Bitcoin is created slows down and the available supply gradually decreases. This scarcity is fundamental to Bitcoin’s value proposition as a store of value.

Second, halvings have historically been associated with bullish price movements. Bitcoin price has risen significantly since previous halvings such as 2012 and 2016. This pattern is due in part to declining supply coupled with continued demand, potentially leading to an imbalance that favors higher prices.

Bitcoin has increased approximately 743% since the last halving in 2020, rising from ~$8,755 to an all-time high of $73,790 on March 14, 2024. Although past performance is no guarantee of future results, market participants are expecting another increase for Bitcoin. BTC as strong institutional demand for the asset comes in, with spot Bitcoin exchange-traded products recently approved in the US, Germany, and Hong Kong, and the London Stock Exchange preparing to offer physical Bitcoin listings. Prices have risen. .

Bitcoin Magazine and Kraken Halving Live Stream

To commemorate this momentous event, Bitcoin Magazine is hosting a Halving Live Stream Event presented by Kraken tonight. Featuring key players in the Bitcoin industry, including Strike CEO Jack Mallers and celebrities such as Dave Portnoy, this livestream will take an in-depth look at the top 21 moments from the last Bitcoin era and provide insights into the Bitcoin ecosystem. We will highlight important milestones and developments.

Live streaming isn’t just about looking back. This is also a look at the future of Bitcoin. The winner of the Nitrobetting Bitcoin Halving 1 BTC Prize Challenge will also be announced during the event, demonstrating the growing interest and participation in Bitcoin and the halving event.

The live stream can be found here.