(MT Newswires) -- Ian Rogers, Chief Experience Officer at Ledger, discusses Bitcoin halving, an event that halves the reward for verifying transactions and adding new blocks to the blockchain. Rogers points out that halving is an opportunity for people to learn more about Bitcoin and how it works. He notes that the process of mining Bitcoin is designed to become increasingly difficult, similar to mining precious metals.
Prior to halving, Bitcoin reached all-time highs on a weekly, monthly and quarterly basis, which is unprecedented. In the past, these peaks have been followed by a 300% appreciation. Miners have invested in anticipation of this rise, betting on an increase in the price of Bitcoin. The breakeven point for miners is currently Bitcoin at $32,000, and after halving it will be $64,000. Rogers mentions that miners continued to invest even when the price of Bitcoin was between $40,000 and $50,000, suggesting their belief that the price would rise above $64,000. Bitcoin is currently trading at around $70,000.
After halving, the number of Bitcoins created each day will fall from 900 to 450. At the same time, Bitcoin ETFs are generating demand for around 2,500 Bitcoins a day. With only 21 million Bitcoins ever to be created, of which 19.5 million are already in circulation, Rogers points out that the combination of increased demand and reduced supply due to halving creates a classic supply and demand situation that could influence the price.
