Bitcoin’s Fourth Halving: What Investors Need to Know
Bitcoin has halved again, marking a significant event in the cryptocurrency world. The fourth halving took place on 20 April, with no immediate impact on the price of Bitcoin. However, historical trends show that new price highs are typically reached between seven to 12 months after a halving event.
The halving, which occurs every four years, reduces the rewards from Bitcoin mining by half, ultimately halving Bitcoin inflation as well. This event has attracted attention due to its anticipated medium and long-term effects on the value of Bitcoin.
While some analysts are urging caution for investors, noting that the halving has already been priced in, others believe that the longer-term effects are yet to be seen. Bitcoin miners may see reduced income in the short term, but historically, the growth in the value of Bitcoin has outweighed the reduced rewards.
Despite concerns about the energy consumption of Bitcoin mining, the industry continues to grow. The Cambridge Bitcoin Electricity Consumption Index estimates that Bitcoin currently consumes between 0.2% and 0.9% of global energy. Transaction fees are also becoming a larger part of the block reward, with some fees exceeding mining income.
Overall, the halving of Bitcoin has once again sparked interest in the cryptocurrency world, with many eagerly watching to see how the market will react in the coming months.
