Halving in the Bitcoin network took place – the reward for the block fell by half

On April 20, Bitcoin experienced its fourth block reward halving, marking a significant milestone for the pioneering cryptocurrency. This event took place at block 840,000.

The upcoming miner who successfully mines the next block, 840,001, will now receive a reduced reward of 3.125 bitcoins, compared to the previous 6.25 bitcoins over the past four years. As a result of this halving, the daily supply of new bitcoins is expected to be around 450 BTC, cutting it in half from the previous 900 BTC. Additionally, the annual supply is projected to decrease to approximately 0.85% of the total supply of 21 million coins. Currently, about 93.7% of all bitcoins have been mined.

Satoshi Nakamoto, the enigmatic creator of Bitcoin, designed the halving to create scarcity and, subsequently, increase the value of the cryptocurrency. Historical data supports this theory, as Bitcoin’s price surged by 54 times during the second halving cycle, 13 times during the third, and 8 times during the fourth.

However, not everyone shares an optimistic outlook on Bitcoin’s future. Skeptics from JPMorgan, a prominent American investment banking holding and one of the largest financial institutions globally, recently announced their belief that Bitcoin’s price will actually decline following the halving, contrary to expectations.