The block reward was developed as motivation for the miners to continue to contribute with their computing power and maintain the security of the blockchain network. The initial bock reward was 50 BTC, but after the halving event in 2012, it was cut to 25 BTC.
This continued to happen every four years, and in May 2020, the block reward was minimized to 6.25 BTC. As we mentioned, the main result was a bull cycle that generally happens after a halving because it creates a different relationship between supply and demand. Actually, the demand is higher for BTC than the supply.
As a result, the price of Bitcoin soared to over $10,000 and continued to increase throughout 2020, and by the end of the year, the value of Bitcoin was at a price point of over $20,000. In 2020 the Bitcoin’s price increased to over $60,000 thanks to the support of the business and the public sector and the reduced supply of BTC.