SINGAPORE - The halving of popular cryptocurrency Bitcoin is widely expected in April and the quadrennial event has lifted the crypto market in recent weeks.
After the network mines 210,000 blocks, which takes about four years, the bitcoin reward given to miners for processing transactions is cut in half.The halving will continue every four years until about 2140, when the maximum supply of 21 million bitcoins is reached.The halving is prescribed in the Bitcoin protocol to maintain scarcity and counter inflation. It is meant to control the digital currency’s supply and support its value.
Amberdata added that as the impact of Bitcoin halving on miners’ rewards is substantial, it becomes crucial to monitor the volume of transaction fees paid to miners.The price of Bitcoin has risen since the start of 2024 on the back of the January approvals in the United States of spot Bitcoin exchange-traded-funds .Adding to investors’ optimism is the halving.