According to a calculation, the next Bitcoin halving, which occurs every four years, would take place on April 20, 2024. This date, which refers to the number 420 prized by Elon Musk, is intriguing. However, others believe that this key event will take place rather around April 14. In any case, halving could give a new impetus to the course of Bitcoin.
Halving, a historically decisive event for the price of Bitcoin
Bitcoin halving is a pre-programmed event that halves the bitcoin reward granted to miners for each validated block. Currently from 6.25 BTC, it will increase to 3.125 BTC after the next halving.
This four-year event mechanically reduces the rate of issuance of new bitcoins and therefore the inflation of total supply. In the past, it has had a very positive effect on the price of BTC in the medium term. By reducing supply, halving causes a relative shortage that raises prices.
In the months following the previous halvings, after an initial period of latency, the price of Bitcoin grew dramatically to reach highs. The increased scarcity eventually prevails and demand exceeds the available supply.
Some believe that the next bitcoin halving will symbolically take place on April 20, 2024, with reference to the number 420 dear to Elon Musk. Could the influence of Tesla’s boss give additional impetus to the BTC price this time?
The exact date doesn’t matter, it’s the medium-term impact that counts
However, we should remain cautious in the face of this possible coincidence. Other calculations rather place the bitcoin halving around April 14, 2024. And in the end, the exact day does not matter: it is more the medium-term effect on the bitcoin supply that really matters.
Certainly, in the past, the price of bitcoin has grown sharply in the months following a halving. But there is no guarantee that this effect will happen again in 2024, with other macroeconomic or speculative factors being taken into account.
In any case, halving Bitcoin’s inflation is positive for its long-term value, by mechanically and sustainably strengthening its scarcity. The possible nod to the number 420 adds a fun curiosity, but does not change the underlying economic phenomenon.
The coincidence of the next bitcoin halving with the symbolic date of April 20, 2024 is enough to fuel speculation. But beyond the anecdote, it is the real impact of this four-year event on supply that matters in the long term. Halving should reinforce the scarcity of Bitcoin, even if other factors will influence its course.