Investing.com -- The reward for mining Bitcoin could be cut in half as soon as April, analysts at VanEck have said, adding that the event may significantly impact the price of the world's most popular cryptocurrency.
Bitcoin halving
Known as «halving,» the process could see the amount of Bitcoin received by participants in the blockchain network underpinning the token slashed to 3.125 from 6.25.
Halving limits the number of Bitcoin in circulation, possibly lowering fresh supply on the open market.
Roughly speaking, halving occurs about once every four years, or after the network has verified transactions on a total of 210,000 blocks. The first halving took place in November 2012, when the return from mining stood at 50 Bitcoin. Two more halvings happened in 2016 and 2020.
Eventually the reward is due to hit a mark of 0.00000001 Bitcoin, the lowest denomination of the token. Called a «satoshi,» this amount could theoretically be the reward until the proposed limit of 21 million Bitcoin in circulation is potentially reached in about 2140.
When could the next Bitcoin halving occur?
The next Bitcoin halving will likely take place around April 24 this year, Menno Martens, Crypto Specialist at VanEck told Investing.com.
Martens called the event «pivotal,» noting that prior halvings have resulted in rallies in the price of Bitcoin and the overall capitalization of the crypto market.
The first halving in 2012 saw the price of Bitcoin shoot up from around $12 to around $130 six months later, according to data from crypto exchange Binance. Following the second in 2016, it soared from $660 to around $900 in half a year. The third in May 2020: $8,600 to $15,700 by November that year.
«This historical pattern suggests the halving
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