Bitcoin today celebrates 12 years since its first halving, a historic event that halved miner rewards from 50 to 25 BTC per block. This date marks the beginning of a series of transformations that have shaped the economy of Satoshi Nakamoto's invention, now valued at more than $95,000.
A decade of planned reduction that forges the scarcity of Bitcoin
On November 28, 2012, the Bitcoin network experienced its first halving, an event planned by its creator Satoshi Nakamoto to control crypto inflation.
This mechanism, integrated into the source code, automatically reduces miner rewards by 50% every 210,000 blocks, or approximately every four years. After three successive halvings, the block reward fell from 50 BTC to just 3,125 BTC today, drastically limiting the influx of new bitcoins onto the market.
This planned scarcity has proven to be a major catalyst for the valuation of Bitcoin. At each halving, the selling pressure of miners decreases mechanically, creating a scarcity effect which has historically preceded phases of significant increase. The last halving in April 2024 was no exception to this rule, with bitcoin having since increased by more than 45%.
With only 1.2 million BTC remaining to be mined out of the 21 million planned, the mining race is becoming more and more competitive. Mining difficulty recently crossed a new all-time high at 102.3 trillion, reflecting intensifying competition among miners.
The mining industry adapts to new challenges
Facing the continued reduction in rewardsthe mining ecosystem is going through a major restructuring phase. Major players in the sector like Marathon Digital have had to adapt their strategies, in particular by selling part of their production to maintain their profitability. Others, like TeraWulf, have considered mergers to pool their resources.
Innovation becomes crucial for the survival of miners. Some are turning to artificial intelligence to optimize their operations, while others are exploring alternative energy sources. El Salvador is a pioneer in developing Bitcoin mining using volcanic geothermal energy.
This quest for efficiency intensifies as Bitcoin reaches new highs, approaching $100,000 in November 2024. Miners must now juggle rising operational costs with market volatility.
The 12th anniversary of the first halving thus marks a turning point in the history of Bitcoin, demonstrating the resilience of its economic model in the face of growing challenges. As the next halving looms in 2028, the mining industry continues to change, driven by innovation and constant adaptation to new market realities.
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