Cryptocurrency

Bitcoin surpasses 9K after third historical halving

Bitcoin surpasses 9K after third historical halving

Bitcoin rose during Wednesday trading, after the largest digital currency in terms of market cap underwent the third historical technical adjustment (halving) since its emergence in the world in 2009.

This amendment would reduce the rate of creation of new currencies by half by reducing the rewards granted to those who mine the currency to 6.25 new bitcoins per block from 12.5 bitcoins.

The leading virtual currency has risen more than 20 percent since the beginning of the year, reaching $10,000 last week, its highest level in nearly three months, and traders said the prospect of a half-mining bonus boosted asset gains this year.

The Bitcoin has also previously undergone two reductions in the bonuses granted to its miners, the first was in November 2012 and the second was in July 2016, where the upcoming halving event take place in May 2024, with the process occurring almost every four years.

Both processes allowed the currency to rise by about 10,000 percent from late 2012 to 2014, and by about 2,500 percent from mid-2016 to December 2017, when the price reached its highest point, which approached the $20,000 per bitcoin barrier.

The half-reduction in the digital currency source code was written by its creator, Satoshi Nakamoto, to control inflation, and the metal's rewards will continue to fall by half per 210,000 blocks until they reach zero in 2140, limiting the total number of existing currency to 21 million.

Moreover, the total cryptocurrency market capitalization increased from $242.7 billion on Tuesday to $245.6 billion today, while the trading volume decreased from $160.4 billion to $131.3 billion, according to CoinMarketCap.

The Bitcoin advanced 2.68 percent to trade at $9,040, Ethereum saw a 0.16 percent surge to $191 and Ripple ascended 0.86 percent to $0.20.

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