If you’re wondering what this has to do with bitcoins price, then you’ll be glad to know that it has a huge impact! The last halving caused the bitcoin price to go up by 100% in just one year. However, this time around, it is expected that the impact will be less significant due to increased mining difficulty and a growing number of BTCs already existing.
Bitcoin Halving Explained
Bitcoin halving is a phenomenon that has been experienced by Bitcoin since its creation. It’s an event that occurs every four years, and it can cause the price of bitcoin to rise over time as the reduced supply pushes the demand up.
The upcoming Bitcoin halving is certainly expected to have a positive impact on the price of bitcoin. Bitcoin halving is a set of rules that was programmed into Bitcoin protocol, and it dictates how the number of bitcoins mined decreases over time.
Bitcoin’s mining reward halves every 210,000 blocks which means that miners are rewarded with 6 per block since May 11, 2020, this will be reduced to just 3.125 BTC per block in subsequent years. This event has occurred several times before in 2013, 2016, and lastly, in 2020.
Looking forward
However, experts expect more attention from traders as well as new investors due to this upcoming event where the amount of newly minted coins becomes half compared to what they used to be previously mined after four years or so. Halving could trigger an upward shift in the price of bitcoin, but it could also mean reduced interest from miners and this might affect the hashpower.
The next Bitcoin halving event is expected to occur in spring 2024, and experts expect a gradual increase in the value of BTC over time as we get closer to that period. More investors are likely to shift their attention towards cryptocurrencies, and those who already traded them will be looking for new opportunities. Experts believe that increased demand may push up prices even further due to fixed supply which can only drive cryptocurrency’s adoption further into mainstream use cases such as micropayments etc.
Final Thoughts
Bitcoin halving is a powerful mechanism that can impact the price of bitcoin. It also demonstrates how decentralized currency works. This knowledge about Bitcoin basics will help you make more informed decisions about what to do with your bitcoins now before and after Halving Day 2024.
There are many opinions about how this event could affect the bitcoin price, but no one knows for sure what would happen next after spring 2024 because there has never been a case like that before due to a lack of historical data available. However, based on past events, it looks very likely that we’ll see another bull run starting sometime between now and 2024, with some new all-time highs reached by the end of 2021 or 2022. At least this seems more probable than not if history repeats itself as usual.
