Bitcoin prices reached a high $73000 mark. The market anticipates a high demand, while the supply is limited. It is all because of the halving event which occurs once every four years, The event is steeped into the design and philosophy of scarcity. Satoshi Nakamoto, the creator of Bitcoin, designed the crypto to have a finite supply of 21 million coins. The issuance of new coins is reduced. Halving is significant as it cuts by half the rewards the miners receive while validating the transactions. It reduces the rate at which Bitcoins are created, suppressing the supply of new Bitcoins. In 2009, miners received 50 Bitcoins for every 10 minutes. There were three halving. They now receive 6.25 Bitcoins every 10 minutes.

Halving occurs after mining 2,10,000 blocks. Mining is the process of making computer hardware do mathematical calculations for Bitcoin network to confirm transactions and increase security. In April 24. there will be next halving. The block reward will be restricted to 3.12 Bitcoins for every 10 minutes of mining.

Bitcoin pricing, among other things, is scarcity driven. By the year end (2024), the prices may hit $150,000 and $250,000 in 2025.

As value increases, despite reduction in rewards, profitability of miners may not get affected. Miners may have to reduce power consumption and may have to improve hardware efficiency.