Many cryptocurrency prices continue to climb: Bitcoin, the most widespread, has reached the 50,000 euro mark for the first time since December 2021. Bitcoin has been staying there for almost a day – the price is currently between 52,000 and 53,000 euros.
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The second largest cryptocurrency, Ethereum, is also rising in a similar way. It is currently around 3,000 euros – it last achieved that in April 2022. Many other coins and tokens are also in an upward trend.
Bitcoin rewards are halved again
The next big event in the crypto world is the so-called Bitcoin Halving. Every 210,000 blocks, the reward for miners is halved, which happens every four years. The Bitcoin protocol includes this mechanism to counteract inflation. Mathematically, the next halving should take place on April 20th or 21st, 2024. Miners will then receive a reward of 3.125 Bitcoin per block mined instead of the previous 6.25.
In theory, halvings set the stage for price increases because the supply of new Bitcoin becomes scarcer. In addition, experience shows that some miners stop, which can lead to increasing transaction fees. If Bitcoin’s price increases, other cryptocurrencies such as Ethereum usually follow suit.
Such a price rally before the halving is unique so far. The last time, in May 2020, the Bitcoin price only rose significantly months after the halving. This was followed by the crypto boom with Bitcoin prices exceeding 50,000 euros for the first time. At that time, Ethereum first rose above 3,000 euros and finally above 4,000 euros.
However, PC gamers don’t have to worry this time: Bitcoin has not been mined with processors or graphics cards for many years, but with specialized ASICs. Ethereum has completely left mining behind and switched from Proof of Work to Proof of Stake. A crypto-related graphics card shortage is therefore no longer expected.
(mma)
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