Tech
After the Bitcoin halving weekend, the cryptocurrency market sees small gains
Bitcoin’s long-awaited halving event, where the block reward is reduced by 50% to slow the distribution of new coins, took place over the weekend. But that didn’t trigger huge price increases as many cryptocurrency investors and miners expected.
The Bitcoin Halving event takes place approximately every four years and slows the entry of new coins into the crypto economy, helping the asset become increasingly scarce over time.
There is a strict maximum limit of 21 million Bitcoins, of which over 19 million have been “mined” by people solving complex puzzles with high-end computing hardware in order to facilitate other people’s blockchain transactions. They now receive 3,125 Bitcoin as a reward for doing so first, up from 6.25 BTC a month ago.
Bitcoin is up 5.89% over the past seven days and remains below the previous $70,000 mark, while Ether (ETH) is up 4.76% over the past week and remains below $3,500. While Bitcoin is the largest cryptocurrency by market capitalization, Ether is the second largest.
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On March 14 this year, Bitcoin hit a new all-time high of $73,750.07, exceeding the $70,000 threshold for the first time in its existence. Investors, analysts and miners hoped that the Bitcoin Halving would further increase prices and fuel investor optimism, which encourages purchases.
The price immediately corrected itself after reaching the new high, but is currently above the $60,000 threshold.
The popularity of cryptocurrencies and their widespread use raises questions about how governments should regulate assets in a way that protects investors while taking action against malicious actors.
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