Bitcoin (BTC) marked another mining milestone on Thursday, crossing the midpoint on the way to its next halving event.
With block number 735,000 mined at approximately 10:29 UTC, Bitcoin crossed the midway point for its upcoming halving. The block was mined by Poolin, earning 0.16215354 BTC ($6,402.45) in fees.
Halvings occur every 210,000 blocks, with May 5 marking the point towards the second tranche of 105,000 blocks. For some Bitcoiners, like Samson Mow, a supporter of the adoption of Bitcoin by Nation-States, the halving is a reminder to accumulate more satoshis:
WE ARE HALFWAY TO THE NEXT HALVING AND YOU HAVE NOT STACKED ENOUGH #BITCOIN YET.
— Samson Mow (@Excellion) May 5, 2022
The halving cycle is a unique mechanism that controls the issuance rate of Bitcoin. As the cryptopedia Cointelegraph explains, “As a result of the halving cycle, the available Bitcoin supply decreases, increasing the value of coins that have not yet been mined.”
The halving is key to determining the supply of Bitcoin – which has recently passed the 19 million milestone – and the rate of issuance, which is currently 6.25 new BTC every 10 minutes or so. In a nutshell, about $250,000 worth of BTC is minted with each new block.
The next halving is planned for some point in April 2024, and the previous one occurred on May 11, 2020 when Bitcoin entered its fourth “epoch”. The system will continue like this until about 2140, when the last Bitcoin is mined.
The issuance rate and the “supply shock” that accompanies each halving have a significant impact on the price:
As shown in the chart above, the Bitcoin price has increased 100-fold from the 2012 halving to the 2020 halving price. With current price levels around the $40,000 mark, the price has done another 4x.
With typical Bitcoin “honey badger” aplomb, the peer-to-peer decentralized electronic money system also hit a new record: mining hash rate hit an all-time high.
The hash rate reached 249.1 exahashes per second (EH/s) overnight on May 4, surpassing the previous all-time high by 1 exahash. Essentially, with the hash rate constantly setting new highs, the security of Bitcoin – as these computers or “miners” work to secure the network – has never been stronger.
Half way to the next halving and another ATH for the hash rate; it’s another small celebration for Bitcoin amid the woes of a mini bear market.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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