We are in 2022, where Bitcoin miners are bestowed with 6.25 bitcoins for every block they effectively mine. Bitcoin halving is one of the most momentous events on the blockchain and happens every four years. Historically, bitcoin halving rose the price significantly. Every halving brings down the inflation rate, creating an upsloping pressure on the bitcoin price. This results in a positive impact with bitcoin prices rising in anticipation of a having.
More on bitcoin halving
This event is cited as halving because the process slashes the rate by half at which new bitcoins are issued. In a way, bitcoin infuses synthetic price inflation until the release of all bitcoins. The halving event is crucial for traders because the number of new bitcoins is reduced. Under most circumstances, halving will limit the supply of new coins and maintain a soaring demand; the circumstance can differ with a fluctuating bitcoin demand.
With a maximum bitcoin supply being 21 million, the reward system is envisaged to continue until 2140. On attainment, network users will award miners fees for processing transactions. This is done clearly to incentivise miners and propel them to stay in the loop. With this in mind, many say that crypto is similar to gambling, like a free bet casino, where you can play and win or lose.
The clock is ticking
As per experts, bitcoin halving is set to take place in April 2024, with the bitcoin price diving into a bull run. A block reward is scheduled to drop at 3.125 from 6.25 per block. Although the cryptocurrency market will witness volatility, bitcoin prices are expected to soar. Simply put, if the amount of gold mined was cut in half, and the value was established on its scarcity, then gold halving would also drive the price sky-high.
It has been almost 12 years since bitcoin was first mined in 2009 with a predefined cap and a projection of the virtual currency sustaining till 2140. As per the previous trends, masters in the game envision 2024-2025 to be a golden period for the crypto market. We are halfway through this undeniably enthusiastic phase with an anticipation of an all-time high before 2024. A lucrative stretch indeed for the bitcoiners; expect some volatility and corrections amid the process.
Will the world adopt cryptocurrency?
Investors are curious about milking the massive expected run-up period. Every halving is inviting huge gains, with cryptocurrency being on the rise. Crypto market capitalization is powered by bitcoins growth, which has been on a bull run and is accountable for 69% of the market value. At present, we may be early in the digital currency, but cryptocurrency adoption is a matter of time and not ‘if’. A survey foresees cryptocurrency to be a mainstream adoption within a decade. Also, cryptos are expected to overhaul traditional investments.
In recent times, crypto adoption has advanced at an unparalleled speed. Curiosity, interest and trust levels have led to global adoption. Coming back to the question, will players expand their portfolio and adopt cryptocurrency in 2024 halving? It’s worth noting the last halving event led to crypto roaring and escaping the pandemic-related bear market, which was experienced by the stock market.
Let’s just say if you are looking to invest, now is the time to ‘double down’ on crypto.
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