What will be Bitcoin price after Bitcoin Halving?
Bitcoin halving is a crucial event in the cryptocurrency's protocol that occurs approximately every four years, or after every 210,000 blocks are mined. It is designed to control the supply of new bitcoins entering circulation and has significant implications for the cryptocurrency's overall ecosystem.
During a halving, the reward that miners receive for validating and adding new blocks to the blockchain is halved. The original reward was 50 bitcoins per block, and the first halving in 2012 reduced it to 25 bitcoins. Subsequent halvings occurred in 2016 and 2020, bringing the reward down to 12.5 and then 6.25 bitcoins.
This reduction in the reward has the effect of slowing down the creation of new bitcoins, making the total supply more limited. Theoretically, this scarcity can contribute to upward price pressure as demand remains constant or increases. Bitcoin's pseudonymous creator, Satoshi Nakamoto, implemented the halving mechanism to mimic the scarcity and deflationary nature of precious metals like gold, intending to create a digital form of "digital gold" with a capped supply. The next halving is expected to occur approximately in 2024, reducing the reward to 3.125 bitcoins per block.
