Bitcoin halving, the largest event in the cryptocurrency calendar, failed to trigger any significant impact on its price.
Bitcoin halving takes place every four years, which reduces the rate at which new coins are created, to control inflation. According to Bitcoin’s code, written by its pseudonymous creator Satoshi Nakamoto, rewards to miners will continue to halve every 210,000 blocks on the BTC chain.
Beating predictions, Bitcoin’s price volatility declined since Monday.
There were mixed predictions regarding bitcoin halving’s impact on its price. While a section of experts said that the cryptocurrency could suffer a temporary price pullback following the supply-altering event, some others said Bitcoin price may see a bullish impact after halving.
After dipping by 6 percent from around $9000 late Monday, the most popular cryptocurrency climbed back to $8750 early Tuesday, and continued to maintain its stability with marginal ups and downs.
This in stark contrast to the sharp fall by $1,000 from $9,200 that market witnessed during the 24-hours ahead of the bitcoin halving event.
Bitcoin is trading at $ 8,801 at the time of writing this.
The Bitcoin blockchain experienced its third block reward halving Monday, which cut the reward for unlocking a “block” by half.
Bitcoin miners now get 6.25 BTC per block as against 12.5 new coins they acquired before the halving.
It is estimated that about 30 percent of Bitcoin (BTC) mining firms will be switching off their machines as the business becomes unprofitable due to the steep reduction in mining rewards.
Unlike fiat currencies, digital currencies have no central banks to regulate their supply.
This is the third halving since Bitcoin was created in 2009. The previous two halvings occurred in 2012 and 2016.