A Simple Explanation for a quick start
What is Bitcoin halving? It's a process where the miners' reward for creating new blocks is cut in half. Why is this important? Because it reduces the amount of new Bitcoins that can enter the market. And what does this mean for us?
When something becomes scarcer and demand for it rises, its value often increases!
If this quick preview intrigued you, dive deeper with us into the world of Bitcoin and discover the true story behind this phenomenon.
Bitcoins and financial crisis
In 2008, the world witnessed the largest financial crisis since the 1930s. In response, a year later, Bitcoin was born - a decentralized, democratic, and transparent way to exchange value outside the traditional banking system.
A glimpse at halving
Bitcoin halving is essentially an anti-inflationary tool. The total number of Bitcoins is capped at 21 million, and every four years, the reward for mining a new block gets halved.
This means that with every halving, Bitcoin becomes more scarce.
Looking ahead: What awaits us in 2024?
The fourth Bitcoin halving is just around the corner, and it will impact miners, who will receive 3.125 BTC for each mined block. This event is expected to occur around April 2024. But what does this mean? Historically, after each halving, the price of Bitcoin has surged significantly. Of course, it's impossible to say for certain what will happen this time, but if the past is any indicator, this period is certainly worth watching.
Halving, therefore, significantly influences the cryptocurrency world as it represents a fifty percent reduction in the Bitcoin miners' reward. Historically speaking, the value of this cryptocurrency has always risen post-halving. We can only speculate what this event will bring in next year.