Blockchain Bites: Making Sense of the Halving, Consensus Distributed’s First Day
Miners racing on the network to compete for freshly minted bitcoin produced the 630,000th block at 19:23 UTC on May 11, which triggered the programmed halving event, marking the currency’s third halving in its 11-year history.
The first block in the new 6.25-bitcoin-per-block mining cycle was mined and relayed by China-based Antpool, the fourth-largest mining pool by total computing power.
In an homage to Satoshi Nakamoto’s iconic “brink of a second bailout” message in the 2009 genesis block, f2pool, which mined the 629,999th block (the last before the halving), embedded a reference to the current financial crisis: “NYTimes 09/Apr/2020 With $2.3T Injection, Fed’s Plan Far Exceeds 2008 Rescue.”
The immediate implication after the third halving is that the newly minted bitcoin in a day will fall from 1,800 to 900 units. That would also mean mining operators will see their daily total revenue – at bitcoin’s current price of $8600 – reduced from $15 million to $8 million.
As such, it has been expected the computing power connected to the Bitcoin network will fall significantly after the halving as the revenue decrease will squeeze out those miner operators who lack efficient resources to cut their electricity costs.
Three halving-related events worth knowing about
A once-in-four-years event deserves a celebration:
- Two Bit Idiot’s Halving Happy Hours: “I will have a full six pack of IPAs in hand to celebrate in style,” Messari founder and crypto OG Ryan Selkis said. He promises merriment.
- Bitcoin Halving Party hosted by Binance. Rewatch the live stream on YouTube.
- On Tuesday from 10:30-11:30 a.m., Santiment CEO Maksim Balashevich and Bitstorio Consoritio Group Travin Keith come online for a workshop called What Am I Looking At? Understanding Block Explorers and How To Use Them to Make Investment Decisions. These crypto experts will teach people how to understand block explorers and use them to make investment decisions.