Bitcoin’s hash rate reached a new all-time high on Thursday as BTC is now exactly halfway through the next Bitcoin halving. The 105,000th block since the previous halving was recently mined.
New mining milestone
Of block number 735,000 Mined yesterday, Bitcoin was halfway through the next halving. The block was mined by poolinwhich received 0.16215354 BTC ($6,402.45) in fees.
Bitcoin halvings take place every 210,000 blocks and thus May 5, 2022 marks the transition point to the second phase of the last 105,000 blocks. The halving cycle is a unique mechanism that determines the issuance rate of Bitcoin tokens:
“As a result of the halving cycle, the supply of available Bitcoin decreases, increasing the value of Bitcoins yet to be mined.”
The Bitcoin halving is critical in determining the supply of Bitcoin. The supply recently surpassed 19 million BTC tokens. The issuance rate currently stands at 6.25 new Bitcoins per approximately 10 minutes. Essentially, with each new block, about $250,000 of new Bitcoin is added.
The next halving will take place in April 2024. This system will continue until about 2140 when the last Bitcoin is mined.
Because the number of new BTC tokens that are being mined becomes less and less, it will eventually cause a ‘supply shock’. Fewer BTC tokens will hit the market, meaning the price is likely to rise.
