Bitcoin halving supply shock set to shake up mining sector
The halving could impact the number of daily available BTC by reducing the miner rewards by 50%.
The Bitcoin halving is a programmed process in the Bitcoin (BTC) protocol that reduces the amount of BTC that can be mined per block by 50% every 210,000 blocks, which occurs roughly every four years. In a matter of days, the reward for mining a block will reduce from 6.25 BTC to 3.125 BTC.
The halving shock makes Bitcoin even scarcer and acts as a deflationary measure, bolstering the asset as a store of value.
Bitcoin investors will be happy with the expected price rise post-halving, but miners will need to adapt or die as they compete for fewer BTC rewards. Ultimately, miners are the most affected by the halving.
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Author: Daniel Ramirez-Escudero
