Bitcoin halving is a huge event that occurs every four years, almost like the Olympics. This is followed by many Bitcoin investors as it massively affects the prices. How? This is because the Bitcoin prices rise by a huge percentage after a few months after the halving events. This is why it becomes a huge deal!
What is halving?
The Bitcoin transactions taking place all over the world are recorded on a ledger called the “Blockchain”. This is similar to a bank ledger of sorts and it keeps a track of balances and transactions. This has to be updated and verified periodically and this job is given to the miners. The miners use software and complex algorithms to understand the transactions and this process is called mining.
They do this to verify bank account details, signatures, numbers, checks, customer identity, cash limits, etc. and this is all checked within the blockchain network. When this is verified and the equations are solved, the transactions are cleared to go through and Bitcoin would pay them about 6.25 Bitcoin from their untapped supply. This is a general mining process. To understand it better, click here to know more about it.
The halving occurs once every 210,000 blocks, approximately once every four years until 21 million Bitcoins, which is the maximum supply of it has been released by the Bitcoin network. On this day, the number of Bitcoin rewards cuts the total supply by 50%. For example, four years ago 12.50 Bitcoins were released.
Now in 2024, only 6.25 Bitcoins are released per block. So, halvings reduce the production rate of Bitcoin and give a huge boost to the prices.
So, halvings generally increase the Bitcoin prices to huge proportions. In 2012, Bitcoin’s prices surged from $12 to $1,150 within just a year. In 2016, it went from $650 to $20,000 in 17 months following the 2016 Halving. In 2024, it surged to $48,000!
Halving is done because the creator of Bitcoin, Satoshi Nakamoto said that the transaction fees of Bitcoin will increase over time. Hence, newly minted BTC will have a lower rate. So, by halving, BTC’s price will be intact, if not increased thus allowing the crypto to grow. The next halving is in 2024. This would go on until maybe 100 years from now where the newer BTC supply would be completely exhausted.
Why can you make money by the BTC halving?
Bitcoin is a popular cryptocurrency, with a huge value in the markets. There are a few reasons for BTC halving contributing even more to its value. Even though Bitcoin has seen a plunge in rates ever since Tesla’s statement to stop using BTC in their transactions due to environmental concerns, BTC is strong. After all, it is one of the oldest cryptos in circulation. Here are some reasons as to why BTC would go in your favor in 2024.
The Pandemic.
Many industrialists and capitalists who could comprehend the collapsing economy completely started investing in Bitcoin saying that it was more stable and gave better returns. Big institutions like Tesla, Square Corp, Microstrategy, etc. have bought large amounts of Bitcoin saying that the returns they got negated the inflation. Even people started buying more Bitcoin, this reduces supply and increases demand thus seeing a huge rise in the prices of the cryptocurrency.
The Halving Event in 2024
Reducing the supply of BTCs would push up the prices of Bitcoin by massive proportions especially with the demand rising now. Many huge institutions are now accepting Bitcoin as payment methods in order to bolster the popularity of this cryptocurrency. Paypal, JP Morgan, Burger King, etc. are all incorporating BTC as a means of transactions. This is increasing the interest in Bitcoin now, thus increasing the demand.
The Increasing Trust in Cryptocurrency.
Back in the day, cryptocurrency was considered useless or something like a scam. People thought investing in crypto was losing money. However, when Bitcoin millionaires started popping up from everywhere, everyone’s interest got piqued. Many retail investors now are offering crypto as payments. Bitcoin is the father of all cryptocurrencies, thus maximum trust is placed in Bitcoin. This makes BTC very strong, so much so that analysts say that it won’t be wiped out any time soon. With the halving event, you can be sure of a value increase.
Global Acceptance
The very fact that crypto is doing so well has made many countries sit up and take notice of it. Canada has approved Bitcoin transactions within their country for ages now. Though Bitcoin transactions legislations are still shaky in the US, after Biden’s government, we will see a steady approval for cryptocurrency. This is predicted as one of Biden’s major backers is a cryptocurrency exchange platform CEO!
Many multinational companies have considered moving to cryptocurrency mode of payments to bypass the fiat exchange problems between countries. In fact, huge amounts can be transferred between trusted dealers without worrying about many KYC regulations. This portends a great market for Bitcoin in the future, hence, you can get rest assured that you might be able to make money off Bitcoin in 2024. Global acceptance paired with the halving events every four years is a guaranteed price increase for Bitcoin.
Conclusion
Bitcoin has been the classic name often representing all cryptocurrencies in the world. It is one of the oldest cryptocurrencies and has a huge user base. It has been incorporated in e-commerce, trades, and business ventures as a more seamless option to trading in fiat. The blockchain technology it runs on makes it very secure for transactions. The halving event is guaranteed to increase the value of Bitcoin.
People are already making money off Bitcoin in the last few years, with Bitcoin price surges even giving rise to young millionaires! While it may not make you a millionaire anytime soon, you can be sure that prices will see an increase in the upcoming years. This would definitely enable you to make money off it in 2024 and the following years.
