World's Largest Cryptocurrency, Bitcoin Network Completes Its Fourth Halving; Details Inside
Yesterday marked the official start of one of the most anticipated events for the digital asset industry. Yes, the halving of the circulating supply of Bitcoin has occurred, marking the start of the Bitcoin Halving Event. Everyone’s attention is now focused on the potential effects of this event on the price of Bitcoin.
Its popularity in the market at large should also cause the event to greatly affect the overall industry. Bitcoin was fairly stable immediately afterward, falling 0.5 percent to US$63,747. A tweak to the cryptocurrency’s underlying technology called “halving” was much anticipated by fans of the virtual currency since it would slow down the creation of new bitcoins.
At the outset, the pseudonymous developer of Bitcoin, Satoshi Nakamoto, included a halve mechanism in the code to slow down the creation pace of new units. The halving was called one of the biggest events in crypto this year, which promotes exchange-traded bitcoin ETFs, by Chris Gannatti, global head of research at asset manager WisdomTree.
Bitcoin enthusiasts have eagerly waited for the halving
There are cryptocurrency enthusiasts who believe that the halving of bitcoin will highlight its value as a scarcer asset. A 21 million-token supply was set by Nakamoto for Bitcoin. Skeptics, however, believe it’s just a technical tweak hyped by traders to drive up the value of the virtual currency. The mechanism of the operation is to make it more costly for cryptocurrency miners to create new tokens by halving the rewards they receive for doing so.
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