Less than 10,000 blocks to the next Bitcoin halving: Why Grayscale says this one’s different

The countdown to Bitcoin’s extremely anticipated halving occasion is on, with fewer than 10,000 blocks left as of Feb. 12.

In accordance to the Bitcoin Halving Clock, roughly 9,843 blocks stay earlier than the occasion, which is estimated to happen by April 17.

The halving occasion is important for the crypto business as a result of it enhances Bitcoin’s shortage by lowering miner rewards. CryptoSlate Perception reported that the occasion would slash the variety of BTC produced each day by miners to 450 BTC from 900 BTC.

Traditionally, BTC halving has normally been adopted by an elevated problem in mining the prime crypto asset and a bullish value motion.

Bitcoin upcoming halving is ‘different’

Crypto asset administration agency Grayscale said the impending halving occasion carries distinct implications in contrast to its predecessors due to the notable surge in BTC’s utility over the previous 12 months.

“Despite miner revenue challenges in the short term, fundamental onchain activity and positive market structure updates make this halving different on a fundamental level,” Grayscale wrote.

In accordance to the agency, the current introduction of Bitcoin Trade-Traded Funds (ETFs) presents a steady demand outlet that would counteract the downward strain from mining issuance.

It mentioned:

“ETFs, in general, create access to Bitcoin exposure to a greater network of investors, financial advisors, and capital market allocators, which in time could lead to an increase in mainstream adoption.”

Moreover, Grayscale highlighted the significance of Non-Fungible tokens (NFTs)-like ordinal inscriptions in the BTC ecosystem. The agency mentioned these belongings “present a new path toward sustaining network security through increased transaction fees.”

Past that, the emergence of ordinal inscriptions has invigorated on-chain exercise, yielding over $200 million in transaction charges for miners as of February 2024. This pattern is anticipated to endure, buoyed by renewed developer engagement and ongoing improvements inside the blockchain.

As well as, Grayscale famous that miners have been proactively making ready for the halving’s monetary implications by liquidating their BTC since late 2023. This proactive stance positions them favorably forward of the halving occasion.

Even when some miners have been to exit the community, Grayscale mentioned the subsequent lower in hash fee would immediate an adjustment in mining problem, safeguarding community stability.

“While [BTC] has long been heralded as digital gold, recent developments suggest that [it] is evolving into something even more significant,” Grayscale concluded.