The debate around which Bitcoin Halving will take place in 2024 is heating up. The panelists were delighted to be halfway there, leaving many bystanders wondering what it was and why it was so important.
According to an article titled ”State of the Network” published by Newsletterest on April 19th, Bitcoin is heading towards its fourth halving or 50% block reward reduction designed to happen every 210,000. blocks, about every four years.
The next Bitcoin halving is expected to occur on May 4, 2024, when Bitcoin hits 840,000 blocks, indicating that we are only 743 days away from the event.
Halving events are significant because they reduce the rewards for miners involved in Bitcoin mining, which involves verifying new transactions and getting them into circulation.
What will happen on 4/5/2024?
In the current era, following the third halving on May 11, 2020, miners are currently receiving 6.25 BTC for every Bitcoin block mined. Taking the daily average of 144 blocks shows that around 900 BTC are currently issued and rewarded every day.
The fourth halving event will ‘halve‘ the reward to 3.125 BTC per block. If the daily average of blocks is constant, about 450 BTC will be released as a reward every day.
Impact of Wednesday’s halving event
After the 19 millionth Bitcoin block, ‘73002,’ was mined on April 1st, it became apparent that there was only 2 million BTC left to reach Bitcoin’s 21 million limit. A decrease in supply usually leads to increased demand, which means that prices can rise.
In the past, the halving event occurred that caused the price of Bitcoin to soar. If the same happens with the next halving, Bitcoin investors will be pleased.