As this fourth halving draws close, we take a look at how this affects the supply of BTC and in turn, the value of the cryptocurrency.
The bitcoin halving is scheduled to happen every 210,000 blocks and the estimate for the next halving is put at May 4th, 2024, going by the current rate at which BTC is being mined.
It is expected to fall even lower with the next halving, where each block reward would only be 3.125 BTC, and with the average of 144 blocks that are mined per day, the daily BTC awarded to miners on a daily basis will fall from 900 to 450.
With less BTC being rewarded to miners for each block, it makes for stiffer competition, causing mining difficulty to skyrocket.
This is said to be the result of more efficient use of block space as there is no evidence that there is a decline in the economic usage of the network.
Nevertheless, a halving that reduces the supply of BTC going into circulation has always been a trigger for the next bull rally and 2024 is expected to be no different.
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