The Bitcoin halving is a programmed process in the Bitcoin
BTCUSD
protocol that reduces the amount of BTC that can be mined per block by 50% every 210,000 blocks, which occurs roughly every four years. In a matter of days, the reward for mining a block will reduce from 6.25 BTC to 3.125 BTC.
Roughly 900 BTC hits the market every day, but that figure will be cut to 450 BTC after the next halving.
The halving shock makes Bitcoin even scarcer and acts as a deflationary measure, bolstering the asset as a store of value.
Bitcoin investors will be happy with the expected price rise post-halving, but miners will need to adapt or die as they compete for fewer BTC rewards. Ultimately, miners are the most affected by the halving.
BTC miners have to constantly optimize their operations as they play a long-term game that depends on the market price of the Bitcoin they receive for mining blocks, depending on their mining efficiency. With block rewards not getting any bigger, miners must prepare to survive in a volatile market.
BTCUSD
protocol that reduces the amount of BTC that can be mined per block by 50% every 210,000 blocks, which occurs roughly every four years. In a matter of days, the reward for mining a block will reduce from 6.25 BTC to 3.125 BTC.
Roughly 900 BTC hits the market every day, but that figure will be cut to 450 BTC after the next halving.
The halving shock makes Bitcoin even scarcer and acts as a deflationary measure, bolstering the asset as a store of value.
Bitcoin investors will be happy with the expected price rise post-halving, but miners will need to adapt or die as they compete for fewer BTC rewards. Ultimately, miners are the most affected by the halving.
BTC miners have to constantly optimize their operations as they play a long-term game that depends on the market price of the Bitcoin they receive for mining blocks, depending on their mining efficiency. With block rewards not getting any bigger, miners must prepare to survive in a volatile market.