At 8:09 p.m. ET on Friday, April 19, 2024, the Bitcoin network marked its fourth block reward halving at block height 840,000. Block 840,000 was mined by Viabtc, securing the notable ‘epic satoshi’ for the fortunate mining pool and a 3.125 BTC reward.
Halving Milestone: Block 840,000 Mined, Ushering in a New Chapter as Bitcoin Miners Face Shrinking Rewards
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The Halving Is Now Complete
Bitcoin’s latest halving event occurred at block 840,000 which was mined by Viabtc on Friday evening. Additionally, the mining pool SBI Crypto unearthed the final 6.25 BTC block reward at block height 839,999. Starting with block 840,000, the reward has been reduced to 3.125 BTC per block. The mined block also achieved a whopping 37.626 BTC in transaction fees.
This reduced block reward is expected to continue until block height 1,050,000, anticipated in 2028, when Bitcoin will undergo its fifth subsidy halving event. Presently over the next eight years or the space between two halvings, miners will get more than a single BTC per block. In 2028, it will reduce from 3.125 BTC to 1.5625 BTC per block.
Four years after that, at block height 1,260,000 at the start of the 2032 halving event, miners will get 0.78125 BTC per block. Prior to the latest halving, Bitcoin’s inflation rate per annum was 1.75%, and following the halving and over the next four years, it will be 1.10%. The Bitcoin halving event is an important occasion celebrated by bitcoiners worldwide at various times.
For some, it marks their initial encounter with this event, while others, seasoned in the crypto realm, have witnessed several halvings. Concurrently with the latest halving, the asset management firm Coinshares released a report indicating that miners are likely to face a reduction in revenue.
James Butterfill, the head of research at Coinshares, stated, “The average production cost per bitcoin among listed mining companies is now approximately US$53,000.” Butterfill also noted that to mitigate some of this revenue loss, several miners, including Bitdigital, Hut 8, and Hive, have begun to generate revenue by offering artificial intelligence (AI) data services.
According to the Coinshares report, other bitcoin mining operations like Terawulf and Core Scientific are moving towards “AI growth plans.” Bitdeer and Iris Energy are also launching AI services. Butterfill further elaborated that miners are proactively managing their financial obligations, with some deploying surplus funds to substantially reduce their debt.
Alongside the mining of block 840,000, bitcoin enthusiasts are also enthusiastic about Casey Rodarmor’s Runes protocol. Similar to BRC20 tokens, individuals can now create fungible tokens via the Runes protocol, a scheme that employs Bitcoin’s Unspent Transaction Output ( UTXO) model.
Furthermore, the fortunate miner who discovered block 840,000 has become the possessor of the so-called ‘epic satoshi‘—the very first satoshi mined in the initial block following a halving event. ‘Epic satoshis’ are considered the most scarce of all satoshis, and estimates place the current one at a value of $1 million.
Meanwhile, the blockchain community’s enthusiasm for innovative protocols like Runes suggests an up-and-coming strong commitment to leveraging Bitcoin’s foundational technology for new applications, ensuring the ecosystem’s continued economic growth. While the reward halving evolution underscores the mining industry’s ability to innovate while adhering to the economic realities imposed by the protocol’s design.
What do you think about the Bitcoin reward halving event? Share your thoughts and opinions about this subject in the comments section below.
