The four-year itch! All the best things in life happen every four years. The Olympics, the Presidential Elections ( come on, it’s a good show ), the FIFA World Cup, the European Football Championship – and of course, the ‘Bitcoin Halving’!
Yes, every four years, the Bitcoin network undergoes a magical transformation, like a winter welcoming Spring or how Clark Kent Transformed into superman, and nobody ever noticed.
So, sit back, relax, count your bitcoin, and get ready to witness the most anticipated event in the crypto world – the’ Bitcoin Halving’!
The ‘Bitcoin Halving’ is one of the most critical events in the crypto industry, occurring every four years. During this event, the block reward for miners is cut in half, reducing the amount of Bitcoin entering circulation. In this article, I will delve into what ‘Bitcoin halving’ is, its history, and how it affects Bitcoin’s price.
What is ‘Bitcoin Halving ‘?
Every time a new block is added to the Bitcoin blockchain, the miner who adds the block is rewarded with a certain amount of Bitcoin. This reward is known as the block reward and is currently set at 6.25 Bitcoin per block. However, every four years, the block reward is cut in half. This is known as ‘Bitcoin halving.’
The first halving occurred in November 2012, and since then, there have been two more halvings in July 2016 and May 2020. The next halving is estimated to occur in late 2024.
The Purpose of ‘Bitcoin Halving’
Bitcoin halving primarily aims to regulate the mining economy by reducing the amount of new Bitcoin entering circulation. This reduction in supply creates a sense of scarcity that drives up Bitcoin’s price, making it more valuable.
Additionally, the halving also reduces the amount of potential selling pressure from Bitcoin miners, making it easier for existing Bitcoin holders to hold onto their coins without worrying about the oversupply.
History of Bitcoin Halving’ and its Impact on Price
The first Bitcoin halving occurred in November 2012, and the block mining rewards were reduced from 50 to roughly 25 Bitcoin per block. The second halving occurred in July 2016, reducing the block mining rewards to 12.5 Bitcoin per block. Finally, the third halving occurred in May 2020, reducing the block mining rewards to 6.25 Bitcoin per block.
Each halving has set the stage for Bitcoin’s price to reach new heights. During the first halving cycle between 2012 and 2016, Bitcoin’s price increased by over 5000% and surpassed $1100 at its peak.
In the second halving period ending in 2020, the price of Bitcoin increased by over 1400% and came close to breaking $20,000 in December 2017. During the third and ongoing cycle, we saw Bitcoin reaching a new all-time high and surpassing $67,000 in November 2021.
The Future of ‘Bitcoin Halving’
‘Bitcoin halving’ is a cyclical event that will continue until all 21 million Bitcoins have been mined. There will be 32 halving’s in total, and by the time of the next halving in 2024, over 93% of the total Bitcoin supply will have been mined. This is when we expect people to lose their minds.
The estimates predict that the last Bitcoin will take over 100 years to be mined, but the exact timing of the next halving cannot be predicted with complete accuracy. This is because the Bitcoin protocol is designed to reduce the block reward by half every 210,000 blocks, and the speed at which new blocks are added is automatically managed.
The Current State of Bitcoin
Early 2023, according to the ‘Bitcoin Rainbow Chart’ from the ‘Blockchain Center’, Bitcoin trades in an oversold zone as we slowly approach the next halving event. The historical market trend of sideways price movements preceding the halving superseded by a bull run is also in line with the ‘Coin Codex’ price prediction.
According to the algorithm, the Bitcoin price could trend toward the next all-time high in early 2024.
However, it is essential to remember that these Bitcoin price predictions are based on the state of technical indicators in early 2023 and could considerably change in the future.
I hope I haven’t lost you…
‘Bitcoin halving’ is a crucial event in the crypto industry that drives Bitcoin’s price movements. By reducing the block rewards, ‘Bitcoin halving’ introduces scarcity to the Bitcoin supply, making it more valuable.
The history of Bitcoin halving has shown that it sets the stage for Bitcoin’s price to reach new heights, and many analysts believe that Bitcoin’s price could surpass $100,000 after the next halving.
While the exact timing of the next halving cannot be predicted with complete accuracy, it is estimated to occur in late 2024, reducing the block reward from more than six to a little over three coins per block. This reduction in supply could lead to another bull run, pushing Bitcoin’s price to new all-time highs, or as it’s commonly known ‘To The Moon.’
In summary, ‘Bitcoin halving’ is a significant event that regulates the Bitcoin mining economy and introduces cyclical price activity to the sector. As we approach the next halving, it will be interesting to see how Bitcoin’s price responds and whether it will continue to reach new all-time highs.
So, forget about the Olympics, the World Cup, or even the Presidential Elections – Bitcoin Halving is where the real excitement is every four years! Who needs gold medals or political drama when you can have a magical transformation of a digital currency? Let’s hope that the next halving brings us closer to the moon or maybe even to Mars. Who knows, with Bitcoin, anything is possible!