Key Points
- The scheduled ‘halving’ event for Bitcoin mining rewards is set to occur around April 17, 2024, creating a sense of anticipation and uncertainty.
- The months leading up to this event have witnessed the approval of the first-ever spot Bitcoin exchange-traded funds in the US and a record Bitcoin price of $73,679.
The rewards for mining Bitcoin are soon to be halved in a pre-planned event known as “the halving.”
This measure against inflation is expected to take place around April 17, 2024.
Despite not being the first halving event, the current high prices and crowded mining field add an element of unpredictability to what could be a significant day in the history of digital currency.
Preceding the Halving
In the run-up to the halving, the US approved the first-ever spot Bitcoin exchange-traded funds.
Additionally, Bitcoin reached a new record price of $73,679 on March 13, 2024.
The price trajectory after the April halving event is uncertain, with no guarantees.
However, past halving events can provide some insights into potential outcomes.
Historical Halving Prices
The first Bitcoin block was mined with a reward of 50 BTC on January 3, 2009.
The reward was reduced to 25 BTC per block during the first halving event on November 28, 2012, when BTC was valued at $12.20.
Following the first halving, BTC’s price surged from $12.20 to around $1,000 by the end of 2023.
The second halving event occurred on July 9, 2016, reducing the mining reward to 12.5 BTC.
At that time, Bitcoin was valued at approximately $640, and by July 2017, it had risen to $2,550.
The most recent halving event on May 11, 2020, reduced Bitcoin mining rewards to 6.25 BTC per block.
Bitcoin was trading for about $8,750 at the time.
Within a year, Bitcoin reached an all-time high of around $62,000.
The 2024 Halving
The upcoming halving in mid-April has led to record levels of speculation and Bitcoin price.
Predictions range from around $75,000 just after the halving to $250,000 or more within a year of the event.
While history shows that BTC’s price has generally soared in the year following halving events, there have been periods of downturn and stagnation in the intervening months.
Concerns Over Network Security
Apart from price concerns, questions about network security in the post-halving world remain unanswered.
There are potential security risks due to the possibility of smaller miners being forced out of the market as rewards are halved.
This could lead to fluctuations in mining availability, reducing hash rates and overall security.
However, previous halving events have had minimal impact on overall network security, and many analysts predict a smooth transition for the network itself.
