It's almost here Bitcoin's next halving The event will last for 5 days. Bitcoin halving countdown tool.unless you follow Bitcoin However, you may be confused as to what is actually going on.
This year's Halving is different. in at least one way— More people are talking about the quadrennial event than any previous event. Without getting too technical, here's what you need to know.
What is halving?
Bitcoin, the largest cryptocurrency, undergoes a halving every four years. Milestones are built into the code of a protocol and are a necessary part of its operation.
In order for Bitcoin to run, miner Mint new coins using energy-intensive machinery. To reward their hard work, they are rewarded with Bitcoins, which today mostly take place in huge data centers.
Currently, miners earn 6.25 BTC for each new block they create. (A block is a segment of the blockchain that contains transaction data.) It will change on Saturday, and the reward will be reduced to his 3.125 BTC.
Why should we care?
It may sound too technical, but it's worth noting. First, assets will become more scarce. Fewer coins will be minted by miners, and fewer Bitcoins will be on the market. And if history is to be followed, the price of the largest and oldest digital coin will rise as a result.
These half-lives also differ in other ways. Largely due to the Securities and Exchange Commission's approval of Spot Bitcoin Exchange Traded Funds (ETFs), more sophisticated investors than before are now participating.
Bob Bodily, CEO of Bitcoin Ordinals Marketplace Bioniq, said: Decryption He said the approval of the new Spot Bitcoin ETF means “more ETFs will be able to hold 1-5% of Bitcoin in their regular ETF products.”
“So ordinary investors should pay attention because they will soon be holding Bitcoin, knowingly or unknowingly,” he added.
Bitcoin's price has always risen after previous halvings, but it doesn't necessarily rise right away. Before the first halving in 2012, the price of BTC was $12.35. Just one year later, the coin cost $964, an increase of over 7,700%.
By July 9, 2016, it's time for the next event. By then, Bitcoin had fallen to $663, but a year later it rose again to $2,500.
The last halving took place in May 2020, when the cryptocurrency's price was $8,500. A year later, during the bull market, the coin was worth over $50,000.
Even with the name of the major “tradfi”, alliance bernstein— said all the fundamentals are in place for the next halving that will push Bitcoin to $90,000 this year.
With the approval of several spot Bitcoin exchange-traded funds (ETFs), more money is flowing into the space. On the other hand, major asset management companies such as BlackRock, A product that provides everyday investors with an easy way to gain exposure to cryptocurrencies.
Miners aren't the only ones paying attention to this event.This is why the 2024 halving should be of interest to even casual Bitcoiners.
Edited by Ryan Ozawa.
