30s Summary
Twelve years ago, Bitcoin experienced its first “halving” event, cutting miner’s rewards from 50 to 25. Since then, three more halvings have occurred, reducing the reward to only 3.125 Bitcoin. This has limited the supply of new bitcoins and has led to Bitcoin trading near an all-time high. Currently, there are only 1.2 million Bitcoin left to be mined, due to the cap set at 21 million. Despite mining getting harder, it has not deterred miners, with some using AI to cut costs. Companies are exploring ways to stay competitive while El Salvador is considering eco-friendly mining methods.
Full Article
Exactly 12 years ago today, Bitcoin, the crypto world’s big kahuna, had its first “halving” event. This cut the amount of Bitcoin earned by those verifying Bitcoin transactions (aka the miners) from 50 to 25. We’ve had three more halvings since then, shrinking the reward for miners to a mere 3.125 Bitcoin.
This sure has limited the supply of new bitcoins entering the market. And let’s not forget Bitcoin’s trading close to an all-time high, mostly thanks to that fourth halving event last April.
Its 12th “halving” birthday isn’t the only big news. As of the end of November, there are 19.8 million Bitcoin out there, leaving just 1.2 million up for grabs. This 21 million cap is a core principle for Bitcoin, a way to ensure its scarcity.
Now dig this. While 1.2 million Bitcoin might not sound like much compared to what’s already been mined, snagging the rest isn’t going to be a walk in the park. It’s going to need more time and effort from miners since the rewards are dropping and mining is getting harder.
The challenges in Bitcoin mining, like higher difficulty and lower rewards, haven’t deterred the miners. Bitcoin’s hitting record highs, and miners are rallying. Currently, it’s trading about 154% higher than it was last year.
Now, despite miners earning more in US dollars thanks to Bitcoin’s rocking performance this year, they’re constantly finding ways to lower their costs and embrace new tech like artificial intelligence (AI). But it’s not all smooth sailing, and some, like TeraWulf, are considering merging. Others, like Marathon Digital, have sold a chunk of their mined Bitcoin after the fourth halving to stay competitive and keep on top of their game.
Meanwhile, El Salvador is looking into eco-friendly ways to mine Bitcoin using geothermal volcanic energy. Interesting, huh?