Today, cryptocurrency is one of the trendiest topics in the digital market because of its several use cases. It is a fact that developers of BTC have created it with the sole motive of using it as an alternative to government-issued currency. Plenty of traders prefer bitprofit.software to get different bonuses. By using this platform, you can begin your trading journey without depositing a single penny in your account. Later, people still realize the BTC network’s real potential, making it unique and famous from other crypto tokens.
Bitcoin halving is the most underrated and ignored topic under the roof of BTC. However, the fact of decreasing the supply of bitcoin will have an impact on its price and its usage. Due to the concept of bitcoin halving, the last BTC from the blockchain network will be mined by miners in 2140. According to some crypto experts, bitcoin halving will positively affect the Price of BTC because of the limited supply. Knowing what factors lead to bitcoin halving can make a better decision about this cryptocurrency.
What is Bitcoin Halving?
Bitcoin miners make money by keeping track of transactions and blocks related to the Bitcoin network. The amount of work is done to get this transaction and blocks processed. It means that the number of bitcoins they gain every day will reduce with every passing day. It may lead to a scenario when they cannot make a profit by mining.
The Bitcoin Halving reduces block reward by half, which means there will be 50 coins for every mined block after one year. The reward starts getting cut from mining in July 2020, which means the next halving happens on 8th July 2024 and will continue till the end of the year. So by 2024, there will be no more 1 BTC block reward issued for miners. Bitcoin halving is one of the most prominent factors based on which the Price of BTC is determined.
The price of bitcoin depends on BTC halving and others like news, partnerships, and regulatory changes. If, after 8th July 2022, there will be no more block rewards issued and the miner’s profits will have reduced significantly, then it is time to go long with bitcoin. Bitcoin is known as an investment because of its volatility and risk. But by that time, the price would have adjusted. So you can invest in that period to earn some considerable money.
How does Bitcoin halving affect the price?
Hence, every passing day increases the risk of Bitcoin prices going down. Even if, by 2024, the bitcoin price doesn’t go down, it won’t be too late to make a profit. If before the halving, there was one block mined every 10 minutes, and after halving reduced to 1 block mined every 12.5 minutes, then from now on, ten blocks per day will mean more profit for miners.
When the supply of Bitcoin decreases and demand increases simultaneously, there tends to be a rise in price because of the scarcity factor, making people buy it at higher rates because of its high demand. So before the halving, bitcoin’s price was increasing every passing month. But after halving, the value of bitcoin started to drop as it had less supply and increasing demand.
What are future predictions?
The Bitcoin halving is happening after 14 years, and its impact on price is visible from 2017 to 2024 if you haven’t noticed it yet. As per technical analysis, the value of bitcoin dropped sharply after the past halving in 2016. Now the impact of this event on its price is more visible due to the high demand for it compared to previous halvings. Hence, probably after one year, its price will go up dramatically.
We cannot predict the future of bitcoin, but we can indeed predict trends and patterns. Therefore, this concept of bitcoin halving is also a prediction that will be a reality in the coming years, and you should take measures accordingly. You can quickly prepare by purchasing bitcoins in advance by using some bitcoins you already have so that halving increase your wealth even further.
It is never too late to start investing in bitcoin because it will always remain the best way to earn money compared to other investment options like stocks or mutual funds. It is still unclear what impact Bitcoin halving has on its price, but one thing is sure it will reduce miners’ profit.
