Officially, Bitcoin's fourth halving is complete, with only 1.3 million Bitcoins left to be mined.

The fourth halving of the cryptocurrency Bitcoin has been completed, resulting in a reduction of the mining reward from 6.25 to 3.125 bitcoins.

The halving process occurs approximately every 4 years and aims to slow down the mining of the limited cryptocurrency, which has a total cap of 21 million coins.

The year 2024 is one of the best in the currency's history, as it has broken a record price-wise and has surged by 50% since the beginning of the year.

A long-awaited event in the cryptocurrency world, the Bitcoin halving, took place on Friday. This move aims to limit production and bolster the digital currency. Additionally, the cryptocurrency mining reward was halved from 6.25 bitcoins to 3.125 bitcoins per new block.

This significant event occurs in the industry roughly every four years, with the validation of one block happening approximately every ten minutes. The halving process slows down the rate of new Bitcoin creation, thereby restricting the supply and maintaining scarcity.

The cryptocurrency Bitcoin was invented in 2008 by an unidentified person or group under the pseudonym "Satoshi Nakamoto" with a global limit of 21 million bitcoins. The reward amount has been reduced over time, halved, to enforce Nakamoto's total global limit. The primary purpose of halving was to control the supply of Bitcoin. By slowing down the rate of new Bitcoin creation, halving helps maintain scarcity and potentially increases the cryptocurrency's value, assuming demand remains steady or increases.

Earlier this year, Bitcoin's price hit a record high amid the anticipation of supply reduction and significant moves towards increased accessibility to trading. The value of Bitcoin has also surged by 50% since the beginning of the year, reaching its peak last month at a record level of $73,797.

Prices have declined in recent days, but the halving event still poses a major challenge for the survival of commercial Bitcoin mining companies. These companies operate thousands of computers in warehouses or massive facilities, consuming large amounts of electricity at high costs. Thus, halving represents a significant survival test for such companies as it reduces their main source of income.

Facing the possibility of shrinking margins, Bitcoin players have heavily invested in new advanced computer hardware, alongside an efficiency drive aimed particularly at reducing energy costs. Additionally, some mining companies may "shut down some of their machines to cut costs, which is equivalent to reducing the number of bitcoins created," according to Manuel Valente, founder of the cryptocurrency asset investment group Coinhouse. He told AFP, "If the price of Bitcoin drops, their profits will decrease further."

Commentators suggest that halving exposes weaker Bitcoin mining companies and could lead to a new wave of sector consolidation for survival. Around 00:30 GMT, after the halving, the price of Bitcoin rose by 0.7% to $63,467.46.