Bitcoin (BTC), the world’s leading cryptocurrency, has undergone its fourth-ever halving event, with miners collecting a staggering $54 million in transaction fees in just the first 60 blocks following the halving. This amount has already surpassed the previous single-day record of $24 million in transaction fees, signaling a new era for Bitcoin miners.
Jameson Lopp, a prominent American software engineer and columnist, recently highlighted the milestone in a tweet. He pointed out that in the first 60 blocks since the 4th Bitcoin halving, miners had collected 860.2 BTC in transaction fees alone. He noted that this amount, equivalent to over $54 million, had already surpassed the previous single-day all-time high transaction fees of $24 million.
The halving event occurred on April 20, 2024, at 05:09:27 UTC, following the mining of Bitcoin’s 840,000th block. This programmed process, embedded in the Bitcoin protocol, reduces mining rewards by half every 210,000 blocks, which translates to roughly every four years. As of today, BTC miners will receive 3.125 BTC per mined block, down from the previous 6.25 BTC.
Impact on Bitcoin’s Price and Market Sentiment
The Bitcoin halving event has sparked renewed interest and speculation within the crypto community, with some analysts predicting that the BTC price could surge to as high as $250,000 in the coming months. However, at the time of publication, Bitcoin’s price stands at $63,623, representing a 1.75% decline over the past 24 hours, according to CoinMarketCap data.
The concept of Bitcoin halving was introduced by Satoshi Nakamoto, Bitcoin’s pseudonymous founder, as a means to manage scarcity and regulate the inflationary supply of Bitcoin. The first halving occurred in 2012, reducing the mining reward from 50 to 25 BTC per block. Subsequent halvings took place in 2016 and 2020, leading to significant reductions in mining rewards over time.
By halving mining rewards, the Bitcoin protocol effectively slows down the rate at which new Bitcoin is created, contributing to the cryptocurrency’s deflationary nature. This process is expected to continue until approximately 2140 when the total supply of 21 million Bitcoins is expected to be fully mined.
The fourth Bitcoin halving event marks a significant milestone in the cryptocurrency’s history, with miners reaping substantial transaction fees despite the reduced mining rewards. As the crypto community continues to monitor Bitcoin’s price movements and market dynamics, the halving event serves as a reminder of Bitcoin’s unique monetary policy and its long-term implications for the digital asset ecosystem.
