The “halving” is here, bitcoin creations will slow down

2024-04-20 03:08:54


A highly anticipated recurring event in the sector, the “halving”, or the halving of the reward received by “miners” who contribute to the creation of bitcoins, occurred on Friday.

“The 4th +halving+ of bitcoin is complete!”, posted the world’s leading cryptocurrency exchange platform, Binance, on its official X account (formerly Twitter). “The countdown has been reset. See you in 2028.”

Since the launch of the digital token in 2009, the bitcoin reward is halved once a certain amount of this digital currency is created.

The generation of bitcoin works in “blocks”, which each contain information on transactions carried out in this currency.

These blocks are “mined”, that is to say created by private actors via very complex calculations. Every 210,000 blocks “mined” or created, the “halving” occurs.

At the rate of one block mined every approximately 10 minutes, halving occurs approximately every four years.

Fixed since the previous “halving” in May 2020 at 6.25 bitcoins per block created, the reward granted to a “miner” fell on Friday to 3.125 bitcoins.

The objective of the “halving” is to control the rate of issuance of bitcoins, the total quantity of which has been defined at 21 million units by its mysterious creator (or creators) responding to the pseudonym Satoshi Nakamoto.

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This maximum level should be reached by 2040.

“By slowing down the rate at which new bitcoins are created, halving helps maintain scarcity and potentially increase the value of this cryptocurrency, assuming demand remains stable or increases,” explains Matthew Weller, analyst at Forex.com , in a note published ahead of the event.

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