Bitcoin Successfully Through Fourth Halfing, Price Predicted To Reach IDR 4.05 Billion

JAKARTA - Bitcoin (BTC) has made it through its fourth halving event after reaching its 84.000th block, where mining rewards are cut to half.

The event saw the crypto community eagerly awaiting what would happen next to the price of Bitcoin, with some predictions reaching up to 250,000 US dollars (Rp4.05 billion).

Currently, the price of Bitcoin is 63,960 US dollars (IDR 1.03 billion), up 1.16% in the last 24 hours, according to CoinMarketCap data.

Starting today, Bitcoin miners will receive 3,125 BTC per mined block, down from the previous 6.25 BTC.

This is a programmed process in the Bitcoin protocol that occurs every 210,000 blocks are mined, which is equivalent to about every four years.

Three previous halvings occurred in 2012, 2016, and 2020, leading to a significant decline in mining rewards over time. The first Half Bitcoin occurred in 2012 when the reward for mining a block was reduced from 50 to 25 BTC.

The main goal behind Haling Bitcoin is to regulate scarcity and regulate the supply of Bitcoin inflation. This mechanism was built into a code by Bitcoin founders who used Satoshi Nakamoto's pseudonym.

By cutting mining rewards to half, this process effectively slows down the creation rate of new Bitcoins. The system will continue until around 2140 when all Bitcoins have been mined.

Major Bitcoin miners have been getting ready for this event. Marathon Digital recently announced its plans to acquire a 200 megawatt (MW) Bitcoin mining facility in Texas for $87.3 million.

Meanwhile, in December 2023, Bitcoin mining company competitor Riot Platforms bought 66,560 mining rigs from MicroBT producers in one of the largest hash rate expansions in the company's history.

"Having Bitcoin is an important event that has historically marked changes in the market, usually starting a bullish trend in the following months. As we approach the fourth half, anticipation builds, showing a slightly easing upward trend continuation," said M2 Chief Executive Stefan Kimmel.

Despite the prediction of short-term price volatility within the crypto community, there is still optimism about the long-term potential for Bitcoin prices.

Billionaire investor Tim Draper believes that halving will help push the price of Bitcoin to "250,000 US dollars or more," a prediction he has consistently expressed, especially in 2022.

"The simple reason why the price of Bitcoin goes up after halving is because its supply is down, and with increasing demand pressures, prices rise naturally in the free market," Draper said.

Meanwhile, Herbert Sim alias "Bitcoin Man" told Cointelegraph that there are currently other elements that play a role when speculating about the price of Bitcoin.

"Having is not the only thing to pay attention to in price movements," he said. He indicated that the new Bitcoin ETF approval in Hong Kong also has the potential to have a big price impact. China's major banks must also start buying their own Bitcoins," he said.