➡️ Currently, when it comes to the main reason driving a new uptrend of the market, many people will probably refer to the concept of Bitcoin Halving..
➡️ So what is Bitcoin Halving ? Why is this an important event that can help you change your position? In this article you will find out and answer!
What is Bitcoin Halving?
➡️ Bitcoin halving is the process of halving the block reward of Bitcoin mining. It happens every 4 years, corresponding to every 210,000 blocks mined, until all 21 million Bitcoins are mined (expected in 2140).
➡️ The next #bitcoin #Halving is expected to happen in 26th April 2024. In the past, Bitcoin has gone through 3 halvings with the timelines being November 28, 2012, July 9, 2016, respectively. 12/05/2020.
📌 Why Bitcoin Halving?
➡️ To understand how the Bitcoin halving works, we need to understand how the Bitcoin network works. Blockchain is the core technology of Bitcoin, consisting of a set of nodes that run software and store a history of transactions on the network. Each node approves or rejects the new transaction. Transactions are aggregated into blocks, which are then approved and appended to the existing blockchain.
➡️ Bitcoin mining is the process of using computers to verify and validate transactions on the blockchain. Miners must solve complex mathematical equations on the Bitcoin network to verify transactions. Once successful, they are rewarded with Bitcoins.
➡️ When all 21 million Bitcoins are mined, #miners will no longer be rewarded with Bitcoins, but instead with transaction fees. This fee ensures miners remain motivated to keep the Bitcoin network running.
📌 The first halving took place on November 28, 2012, when the Bitcoin price increased from $12 to $1,207 on November 28, 2013. The second halving took place on July 9, 2016, Bitcoin price from $647 rose to $18,972 on December 17, 2017. Then, within a year, the Bitcoin price dropped from that peak to $3,716 on December 17, 2018, still about 575% higher than the pre-halving price.
➡️ The last halving took place on May 11, 2020, when the Bitcoin price was at $8,821 on April 14, 2021, escalated to a peak of $63,233, up 617%. After 1 month, the price reached a record of $49,504, an increase of 461%.
From there, you can see that after the Bitcoin Halving in the past, the Bitcoin price has grown strongly.
➡️ At the same time, you also see that after each halving, the price of Bitcoin spikes and then plummets. As an example in 2017-2018, the Bitcoin price rose to $19,000, then dropped to $3,700. The price after the halving dropped sharply, but it was still higher than the pre-halving price of $650.
📌 Predicting the Future of Bitcoin After the Halving in 2024
➡️ Based on past data and results from previous halving events, most investors believe that the value of Bitcoin will increase and possibly reach new ATHs after the fourth halving in 2024.
➡️ Now that the 19 millionth Bitcoin has been mined in April 2022, there are only about 2 million Bitcoins left unmined. The next Bitcoin halving is expected to take place on March 2, 2024, with the block reward for mining reduced to 3,125 BTC. However, the smaller the ratio of subsequent halving events, so the impact on its value will also decrease.
⚠️ Please note that this is not investment advice.
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