The hashrate on the Bitcoin network has reached a new all-time high of 281.79 million TH/s. Consequently, the next halving date has been projected to be as soon as the fourth quarter of 2023.
The halving decreases the number of new Bitcoins generated per block. This implies that the supply of new Bitcoins is less.
In normal markets, lower supply coupled with stable demand usually leads to higher prices. Since the halving reduces the supply of new Bitcoins, and the demand usually remains static, the halving has usually anticipated the highest rises in Bitcoin.
Bitcoin hashrate has reached a new all-time high of 281.79 million TH/s. The next BTC halving is now projected to take place as early as Q4 2023.
The date for the next Bitcoin halving has been moved up as the hashrate has reached a new all-time high.
The Bitcoin hashrate reached a raw value of 281.79 million on September 11, which indicates that more people are joining and is a good sign for the health of the network. The halving date was expected to be sometime in May 2024, but at current levels, it is scheduled for the last quarter of 2023.
The distribution of rewards for miners is halved with each Bitcoin halving, and this event occurs after 210,000 blocks are mined. With more miners on board, more blocks are mined, bringing the halving date forward.
The upcoming halving will reduce Bitcoin block rewards to 3,125 BTC. The entire halving process will continue until the year 2140 when it is estimated that 21 million BTC will be mined. This makes the network deflationary, and proponents argue that this will increase the value of the asset over time.
Bitcoin Halving Date Approaches
The next halving will take place in about a year and a half, but if the current rate holds, it could be reduced a few months from that time. The current block height is 753,742 and the halving will take place at a block height of 840,000.
The previous halving took place in May 2020, with much celebration. Between that event and the halving that took place in 2016, Bitcoin’s trading volume increased 50-fold. There was some concern that the halving would result in less miner participation, but those fears were put to rest.
Numbers Look Good
Bitcoin has broken above the $21,000 mark, which is an optimistic sign for the asset. Reports showed mining revenue dipping below $1 billion for the fourth month in a row, but the overall sentiment seems solid.
Following the latest halving, the average Bitcoin transaction fee increased by 647%. While there is plenty of time between now and the next halving, and despite the bearish mood that has set in in the market in recent months, investors are generally optimistic about the asset’s future.
All 21 million Bitcoins (BTC) are expected to be mined by 2140. But more than 98% will be mined by 2030.
The halving is necessary. This is how Bitcoin controls its supply. Once the block subsidy expires, transaction fees will be paid to miners to secure the network.
By Audy Castaneda
