Bitcoin Halving in 2024 (Complete)

What happened at the 2024 halving?
The 2024 halving occurred on April 19 at block 840,000. The reward to miners dropped from 6.25 BTC to 3.125 BTC for each block mined. This event halved the rate at which new bitcoins are issued, with only 3.125 BTC being generated every tenth minute.

This was the fourth halving in Bitcoin history. The first halving occurred in 2012, then in 2016, and the third was in 2020. Each time, the event attracted attention because the amount of new bitcoins entering the market decreased.

Halving and mining

With each halving, it becomes more difficult for miners to maintain profitability as the block reward is halved. In 2024, when the reward dropped from 6.25 to 3.125 BTC, it made things difficult for all but the largest and most efficient mining farms.

This affects the industry in a number of ways.

First, the reduced rewards drive out less efficient miners who use older hardware or have high operating costs, which can reduce the network hashrate in the short term.

Second, mining centralization becomes apparent as only large players with access to cheap energy and modern hardware can remain profitable. This leads to the concentration of mining power in the hands of a few large companies, increasing the risk of network centralization.

Third, increased competition makes mining even more difficult, requiring the use of increasingly powerful hardware to make a profit.

Despite the decrease in profitability, halvings can also spur innovation in the mining industry. Mining companies are forced to optimize their operations, switch to more energy-efficient equipment, and find new ways to reduce costs in order to remain competitive and profitable.