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The quadrennial Bitcoin Halving is yet again upon us, scheduled to occur later tonight, and will programmatically reduce the block rewards paid out to miners by 50% for the fourth time in history!
Many have attempted to prophesy the potential impact of this event on BTC price, but the arrival of the Halving raises another equally important question: how will Bitcoin afford its security budget going forward?
Bitcoin miners are (primarily) profit-motivated actors and will only operate when the combination of income from inflationary block rewards and transaction fees exceeds their costs; the Halving will reduce emissions and drastically increase miner dependence on transaction fee revenue.
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