Feb 22, 2024

"CoinDesk Daily" host Jennifer Sanasie breaks down everything you need to know about the upcoming Bitcoin halving event, including the frequency of the cycle, what it could mean for bitcoin's (BTC) price and how it's going to impact the mining industry.

Video transcript

You've probably heard of the Bitcoin having. But what does it mean? And why should you care? Welcome to this special Bitcoin Having edition of Coin Desk Daily. I'm your host, Jen Sani. The Bitcoin having cycle refers to the recurring event that reduces the Blockchain rewards paid in Bitcoin and given to miners for validating transactions and creating new blocks on the Blockchain. Basically, the having decreases the rate at which new Bitcoins are introduced into circulation and hence maintains the scarcity of it as a whole. This happens about every four years when the number of total blocks on the Bitcoin Blockchain reaches a certain threshold that is currently set at 210,000 blocks. So what does this mean for the price of Bitcoin? Well, when the supply of a good slows down while the demand remains constant or increases the price of that good consequently rises. Similarly, the general consensus is that the Bitcoin having events are positive for the price of Bitcoin and often generates optimism among investors. However, it's important to note that the magnitude of these increases may diminish with each subsequent having one industry that is directly affected. Is Bitcoin mining as the immediate halving of rewards for new blocks can drastically impact Bitcoin miners revenue and profitability to prepare for the event. Miners might look at diversifying their business, securing newer and more efficient machines or larger companies might start acquiring smaller companies to figure out how to keep both alive leading to industry consolidation. That's it for coin desk daily, get more updates on coindesk.com and we'll see you next time.

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