Bitcoin (BTC) has successfully completed its fourth halving event, reducing mining rewards to 3.125 BTC per block from the previous 6.25 BTC. This event, which occurs approximately every four years, marks a significant milestone in the Bitcoin community, as it manages scarcity and regulates the inflationary supply of the cryptocurrency. The crypto community eagerly awaits the impact of the halving on Bitcoin’s price, with some predictions reaching as high as $250,000.
BTC currently stands at $65,926, with prices remaining relatively flat since the Halving event. The previous three halvings occurred in 2012, 2016, and 2020, resulting in significant reductions in mining rewards over time. The purpose of the halving is to slow down the creation of new Bitcoin and manage its scarcity. By reducing mining rewards, the rate at which new Bitcoin is generated is effectively slowed. This process will continue until around 2140 when all the Bitcoins are expected to be mined.
Major Bitcoin miners have prepared for the halving event, with Marathon Digital acquiring a 200-megawatt Bitcoin mining facility in Texas for $87.3 million. In addition, competitor Bitcoin mining firm Riot Platforms purchased 66,560 mining rigs in one of the largest expansions of hash rate in the company’s history.
Meanwhile, a surge in transaction fees on the Bitcoin network was attributed to the frenzy surrounding the Runes Protocol, a new method for creating tokens on the Bitcoin network. Users are spending a substantial amount in fees for the opportunity to inscribe rare satoshis on the halving block. A total of 37.7 BTC, valued at over $2.4 million, was spent on fees to secure limited space on the fourth-ever Bitcoin halving block.