Bitcoin exceeds “half” with doubts about its impact on the price and “mining”

Bitcoin, the most widely used cryptocurrency, has passed the “halving” phase, an event that occurs every four years and involves reducing the issuance of new coins, with doubts about the development of the price and the future of “mining”, a major activity. To operate the system.

In the first hours after “half” Bitcoin price remains stable at around $64,000Far from the historical maximum reached on March 14, when it touched $73,798.

Experts hope that the “halving”, the fourth in the history of Bitcoin, will strengthen its price, although they do not rule out a period of volatility in the short term. However, they warn that the effects will appear within a few months.

“Historically, Bitcoin has seen notable price increases in the six months following each halving.“, says Javier García de la Torre, Binance Director for Spain and Portugal, in a report analyzing this event.

According to Garcia de la Torre, “Although past performance is not indicative of future results, these trends provide insight into the potential impact” of the halvings.

However, it does specify it Bitcoin's development will also depend on 'general market sentiment' And other factors.

In this sense, the President of Binance highlights the decision of the Securities and Exchange Commission (SEC), the supervisory body in the United States, to allow the creation of exchange-traded funds (ETF) linked to the spot price of Bitcoin, a measure that “led to increased demand” and “led to an increase in… the demand”. Help expand the reach of this cryptocurrency.

The SEC's decision made it easier for institutional investors to enter the market, sending Bitcoin to all-time highs. “Halving” means halving the reward received by “miners” for validating transactions. Unlike what happens with currencies issued by central banks, Bitcoin is created in a decentralized manner through a process known as “mining.”

“Miners” receive an amount of Bitcoin for each block of transactions they validate. After this “halving”, the reward for “miners” increased from 6.25 BTC per block mined to 3.125 BTC. In this way, the creation of new coins is reduced from 900 Bitcoins per day to 450. Halving occurs every time 210,000 transaction blocks are mined. Which usually happens every four years.

In Bitcoin's history, there have already been four “halvings”, in 2012, 2016, 2020 and now in 2024. Bitcoins will continue to be issued until 21 million coins are in circulation. Currently, 19.6 million have already been issued. Another aspect to take into consideration is the impact of the “halving” on “mining” activity, which is key to validating transactions.

The “miners”, in principle, will be the most affected, because Your Bitcoin reward has been reduced. However, this reduction could be offset by a possible revaluation of the cryptocurrency.