Bittime - Bitcoin (BTC) has just gone through its fourth halving event, halving the number of new Bitcoins generated per block.
This event occurred amidst predictions of the "great destruction" of the United States from a famous billionaire.
About Bitcoin Halving
Bitcoin Halving is an event where the reward Bitcoin miners receive for each block they successfully verify is cut in half.
This halving occurs approximately every four years because the blockchain network needs that time to process 210,000 new blocks. This halving of rewards was the initial plan of Bitcoin's creators.
This is to control the circulation of Bitcoin so that major inflation does not occur.
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Bitcoin Prices Actually Rise
The price of Bitcoin (BTC) so far has not matched previous estimates, which will experience a drastic decline. On the contrary, the price of Bitcoin rose from under $60,000 per coin to around $65,000.
Also read: Bitcoin Futures and Bitcoin Options: Bitcoin Financial Contracts, What's the Difference?
However, Bitcoin miners and crypto financial analysts are baffled by the post-halving “chaos” that caused Bitcoin transaction fees to spike to “unprecedented” levels.
Bitcoin expert Jimmy Song explained the situation via an online post. According to him, "This year's halving is indeed highly anticipated, but there are a few 'incidents' that need to be explained further."
Bitcoin Halving Incident 2024
The incident in question was the high transaction fees that accompanied the first block after the halving. Usually, a new block produces 6.25 new Bitcoins, but this time there were only 3.125 Bitcoins.
However, what is surprising is the total transaction fees which reached 37,626 Bitcoins! In comparison, these transaction fees are much larger than the Bitcoins generated by the blocks themselves.
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In fact, one transaction was willing to pay a fee of 8 Bitcoins, or around $520,000!
Bitcoin miners use powerful computers to secure the Bitcoin network and process transactions. In return, they get new Bitcoins and transaction fees.
This mining process is estimated to consume as much electricity as the electricity consumption of certain small countries.
Also read: Mining Bitcoin vs Validating Bitcoin Transactions
Song added that the next five Bitcoin blocks after the halving also had very high transaction fees, namely above 4 Bitcoins per block. According to him, this situation has never happened before.
Transaction Fees Affected by Runes Protocol
Apart from the high interest of users to make transactions as soon as possible after the halving, transaction fees are also driven by Runes Protocol.
Runes is a new Bitcoin protocol created by Casey Rodarmor, the developer behind Ordinals, a controversial format for creating NFTs on the Bitcoin network.
About Runes Protocol
Runes is a new token standard in Bitcoin that makes it easier and more efficient for users to create fungible (equal value) tokens on the Bitcoin blockchain.
Similar to existing token standards on other blockchains such as Solana and Ethereum, Runes allows the creation of new tokens on the Bitcoin network.
However, the way Ordinals works is considered to be a burden on the Bitcoin network because it can create too much data. To overcome this, Runes was created as a more efficient and healthy token standard for the Bitcoin network.
How Runes Work
Runes allows the creation of “fungible” tokens on the Bitcoin network, similar to meme tokens such as Dogecoin. This "fungible" token means that each token has the same value.
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The launch of runes along with the Bitcoin halving was considered an “interesting” move by Rodarmor.
According to him, transaction fees that are greater than the Bitcoin block reward have occurred frequently and will become more common in the future after each halving.
In short, this Bitcoin halving was marked by an unexpected increase in Bitcoin prices and an unprecedented spike in transaction fees. This situation was influenced by the high interest of users and the launch of the new protocol "runes".
Bitcoin Performance Today
Source: Bittime
Bitcoin (BTC) price today showed an increase of 1.98%. Based on data from Bittime, the current price is $66,333 or around IDR 1.08 billion per BTC.
Trading volume in the last 24 hours reached an impressive figure of 24,361 BTC or around 1.58 million USDT, indicating high market activity.
How to Buy Bitcoin (BTC) on Bittime
You can buy and sell Bitcoin (BTC) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Bitcoin (BTC) is available on Bittime with the market pair BTC/IDR . To be able to buy BTC IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Bitcoin (BTC) on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
5 Halving Cycles You Should Know
Buy Bitcoin Before or After the Halving? Here's the Guide!
What Will Happen to the Bitcoin Network After the Halving?
Bitcoin Halving Impact: How Altcoins Fate
DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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