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The leading crypto asset Bitcoin operates on the PoW algorithm. The integrity of its network, as the miners ensure the operability. With each block that miners mine, they receive a reward – a certain number of BTC. Online halving works – a mechanism that halves the reward by miners for a detected block. Halving occurs every 210,000 blocks or every 4 years. The last halving should take place in 2140, when the last Bitcoin will be mined. Several halvings have already occurred.
The first halving took place on November 28, 2012. Then the reward to miners was reduced to 25 BTC for the mined block. After the halving, the asset rate rose a couple of months later, and amounted to $ 1163. After reaching such a parameter, a price correction took place in the market. Bitcoin traded at $ 150-152 over the next two years.
The second halving took place on July 9, 2016. Then the price of Bitcoin was approximately $ 670. The number of BTC that miners could receive for the mined block decreased again – from 25 to 12.5 Bitcoins.
After this halving, the value of the cryptocurrency increased. At the end of 2017, one Bitcoin was worth almost $ 20,000. After that, a correction took place and the Bitcoin price dropped to $ 3,120. Then many analysts dubbed that period the cryptocurrency winter.
The third halving took place in 2020, namely on May 11. The reward that miners could count on for the mined block has decreased again. The reward was already 6.75 BTC. In May 2020, the price of Bitcoin fluctuated between $ 8,600- $ 8,700.
Despite the pessimistic forecasts, in the fall of 2020, the value of the cryptocurrency rose sharply, and at the beginning of 2021 it exceeded the $ 50,000 mark. In the same year, the price of Bitcoin was able to peak at $ 69,000, but then declined. Now the cost of BTC is just over $ 48,700.
When will the next halving take place?
The next halving is to take place in 2024 at block 840,000, or rather on April 10 at 20:53:53 UTC. After that, the remuneration should be reduced again. For one mined block, miners can already receive only 3.12 Bitcoin.
What to expect from the next halving in 2024?
Since after each halving, the price of Bitcoin gradually increased, then we should expect a repeat of the scenario. But how much will the asset’s value rise? It is impossible to give a clear answer to this question. It is not known what the price of the cryptocurrency will be in 2024. Maybe it will be over $ 100,000, or more, or less. There are already a lot of forecasts on this topic, but they are nothing more than the point of view of individual analysts and services.
Therefore, after the next halving takes place in 2024, anyone can value Bitcoin. Most likely it should grow. In the long term, the scenario that Bitcoin will only rise in price is the most feasible. The number of mined coins will continue to decline, which means the price of BTC should rise.
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