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Bitcoin

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April

The king of cryptocurrencies, Bitcoin is moving towards a crucial event in its journey of glory. Bitcoin halving which occurs approximately every four years is just around the corner. BTC came good on the investors’ hopes of achieving a new all time high (ATH) ahead of the halving event. We’ll explore how the Bitcoin halving reward is distributed, how it works, and the effects it has on <a href="https://news.todayq.com/these-bitcoin-mining-shares-surge-over-150-outperform-btc/" rel="noopener noreferrer nofollow">Bitcoin miners</a> and the price of the token. Bitcoin havling pattern 
This process refers to the reduction in the reward given to Bitcoin miners for validating transactions and adding them to the blockchain. It aims to control the inflation rate of tokens by gradually decreasing the supply of new coins.&nbsp;
Bitcoin halving has occurred multiple times since its inception. Below are the Bitcoin halving dates and reward reductions
1st Bitcoin halving occurred around November 28, 2012. The reward for miners came down from 50 BTC to 25 BTC.
2nd Bitcoin halving happened on July 9, 2016. The reward dropped from 25 BTC to 12.5 BTC.
3rd Bitcoin halving took place on May 11, 2020. The reward came down from 12.5 BTC to 6.25 BTC.
4th Bitcoin halving is expected to occur on April 22, 2024. The reward will drop from 6.25 BTC to 3.125 BTC.
As we can see, the reward for each mined block is halved at each halving event. This eventually leads to a reduction in the overall inflation rate of Bitcoin. Halving and block rewards 
The complicated process is directly tied to the block rewards miners receive. Its protocol dictates that the block reward is cut in half every 210,000 blocks. It is important to see that each block added to the Bitcoin blockchain consists of verified transactions.&nbsp;
Miners compete to solve these complex mathematical problems and the first miner to solve the problem adds a new block to the blockchain. They are rewarded with the block reward and this process is known as mining. It might sound a bit complex but it plays a crucial role in securing the network and validating transactions. Impact on Bitcoin miners 
Bitcoin halving directly impacts miners as with each such event the reward for a block is reduced. It affects the profitability of mining operations.
In order to achieve this feat, miners invest in specialized hardware. It includes powerful computers and energy resources to compete in the process. The reduction in block rewards can make mining less profitable. In some cases, it has turned out to be unprofitable for some miners, especially those with higher operating costs.
There is a case from December 2022 where BTC miner Core Scientific filed for Chapter 11 bankruptcy protection.
These firms incur heavy costs in terms of electricity, hardware, and operational expenses. The decline in rewards can make mining less lucrative.
According to the reports, Bitcoin Miner’s Revenue Per Day stands at a current level of $78.50 million. It is up from $18.93 million one year ago. This is a change of 314.7% from one year ago.
Despite the big surge, some less efficient miners may be forced to shut down their operations. However, there is another option to switch to more profitable cryptos than BTC. Experts suggest that this move can potentially lead to a decline in the overall hash rate of the network. Can it pump price? 
BTC price is roaring in high spirits, meanwhile, a drop in the supply of new Bitcoins entering the market. Some experts argue that the lower supply coupled with an increase in demand could lead to a pump in the price. They believe that halving events creates a scarcity driven demand for Bitcoin. However, the biggest crypto recently breached the $70,000 price level to make a new ATH.
It is important to note that the data discovered till now does not guarantee future price moves. Bitcoin is considered as a highly volatile asset class. Its price is influenced by a wide range of factors and halving events are just one of them.
In the latest developments, Fidelity Digital Assets has issued a warning that miners are facing a 50% reduction in rewards. It advised that a strategic plan to prevent bankruptcy is needed. Legal challenges 
On the other hand, the US. Energy Information Administration (EIA) got caught up in legal disputes. It is related to its recent move to collect data on electricity consumption linked to crypto mining. The EIA stated that the rapid growth of mining activity in the country. However, the authority announced a mandatory survey to check electricity consumption.
In the response. the Texas Blockchain Council and Riot Platforms filed legal proceedings against the authority. They claim an unprecedented and illegal data collection demand on the Bitcoin mining industry. Texas judge had granted a temporary restraining order on February 23. The order highlighted the suspicious nature of data collection.
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