Bitcoin miners have made billions in a single day

“Although Bitcoin’s price action has been relatively quiet since the halving, daily mining revenue has surged, surpassing $100 million (2.35 billion crowns) for the first time on the day of the halving,” said Simon Peters, crypto market analyst at eToro.

This was caused, of course, by investors and cryptocurrency fans who bought in bulk on the day of the halving. The average transaction fee on the day of the halving also rose to $127 (CZK 2,980), while under normal circumstances the average fee would range from $2 to $10, i.e. 47 to 234 CZK.

“Users who wanted to be a part of bitcoin history paid significantly higher fees to have their transactions recorded right up to the 840,000th block that triggered the fourth halving,” Peters noted.

Neither fall nor growth came. The value of Bitcoin is still hovering around 1.5 million

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However, the halving did practically nothing to the bitcoin exchange rate itself. Before the halving – i.e. last week on Friday – one virtual coin was offered for CZK 1,549,107. Immediately after the halving, it was CZK 1,518,075.

Currently, the most famous cryptocurrency in the world trades for CZK 1,479,314. Fluctuations in the exchange rate in the order of several tens of thousands of crowns within a few hours are not unusual for bitcoin. High volatility, i.e. fluctuations in value, is typical for cryptocurrencies.

At this point, no one can say with 100% certainty whether Bitcoin will decline or whether the rate will head upwards to new records. Therefore, it is necessary to carefully consider all risks before investing.

Bitcoin is one of the oldest and currently most popular cryptocurrencies. This virtual currency was created already in 2009, but it has only enjoyed greater popularity in recent years. It was created so that it could not be influenced by any government or central bank.

Cybercoins are “minted” by a network of computers with specialized software programmed to release new coins at a steady but ever-decreasing rate. At the same time, miners receive fees from other users for their activity. The reduction in their reward is the halving just mentioned.

“It is a mechanism that represents one of the main advantages of Bitcoin. It enables a gradual decrease in the supply of bitcoin, which increases its value over time,” stated Štěpán Uherík, financial director of SatoshiLabs, which produces Trezor crypto-wallets, for Novinky.

“Because Bitcoin is decentralized, the halving cannot be canceled, delayed or controlled in any way. In this, Bitcoin is radically different from ordinary money, over the emission of which the state has complete control. Halving is an iron certainty in this sense. Bitcoin behaves exactly as we have known since its inception,” added Uherík.

Fixed falling inflation is thus one of the main attributes for Bitcoin’s store of value property

In practice, this means that there will be fewer bitcoins after the halving, or that it will take longer to mine them. “Prior to the current halving, approximately 329,000 new bitcoins were created each year, which represented an increase of approximately 1.8% in the amount of bitcoins in the market. However, after this year’s event, this number will decrease to 165,000 new bitcoins per year, which represents only 0.9%,” Roman Valihrach, founder and CEO of the Czech cryptocurrency exchange Coinmate, explained to Novinky.cz.

“Fixed falling inflation is thus one of the main attributes for Bitcoin’s store of value property. Halving can thus have a significant impact on the value of bitcoin and its investment attractiveness,” added Valihrach.

The number of coins in circulation should eventually reach 21 million, which should happen around 2140.

Cryptocurrency trading volume has risen to 1.1 billion

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