The highly anticipated event known as the ‘halving’ of the cryptocurrency Bitcoin occurred overnight from Friday to Saturday. This halving, which takes place once every four years, aims to combat Bitcoin inflation by reducing the issuance of new coins, thus increasing scarcity.
During the halving, the fees for mining new bitcoins are slashed, resulting in a deceleration of the rate at which new bitcoins enter circulation. This scarcity typically drives up the cryptocurrency’s value, as seen in previous halvings.
Despite historical trends suggesting a sharp rise in the coin’s value following halvings, Bitcoin prices remained unchanged on Saturday morning, with one bitcoin holding steady at 59,600 euros. Nevertheless, the cryptocurrency has experienced significant growth, more than doubling in value over the past six months.
Currently, there are 19.6 million bitcoins in circulation, inching closer to the maximum limit of 21 million bitcoins that will ever exist. This finite supply sets Bitcoin apart from fiat currencies like the euro, which can be endlessly printed, highlighting the unique nature of digital currencies.
