What Can Users Expect From Bitcoin Halving?
Bitcoin halving is an important event for every user in the blockchain network, regardless of its status. It doesn’t matter whether you want to invest in BTC, you’re a miner, or you have already invested in BTC; This is an event that impacts everyone. Here, we explain what you can expect from the next Bitcoin halving, which is predicted to happen in 2024.
Bitcoin Halving – Definition
Between having is defined as an event which half the reward of the miners in the blockchain network. This event was developed by Satoshi Nakamoto because he wanted to cut the inflation rate in half with each halving as this is a peer-based and decentralized network, which means there isn’t any intermediary or authority that took control of the supply of BTC. By creating this system and protocol, it ensured that the network functions without any outside help and the price is increasing because the available supply is always reduced after a halving.
More specifically, the block reward is the incentive that makes mining profitable and covers the high costs of Bitcoin mining. Because the miners need to make an upfront investment in equipment, they also spend a lot of money on electricity. The block reward is a way to compensate and remunerate them for approving blocks of transactions in the network.
Overview of Block Rewards
At first, the miners were very happy to receive rewards of 50 BTC which lasted until 2012. The process of mining was fairly inexpensive and easy because a lot of people were mining on their personal computers. However, the reality changed with each Bitcoin halving because the reward was decreasing. In 2016, it was 12.5 BTC, and then it declined to 6.25 in 2020.
This also meant that the mining process was more difficult and costly. Otherwise, you can easily get the BTC on the Bitcoin Prime app, which is an automated trading site that is based around Artificial Intelligence technology that scans large data sets to provide trading at a high win rate. As a matter of fact, you can earn up to 70% on a daily basis here. The initial deposit that you need to make to open an account is $250.
Bitcoin has become one of the hot topics around the world because the price has skyrocketed and followed an upward trend for over a year. It ended in 2020 with a price of $20,000 in December, and then it increased again in the next three months, breaking $60,000 in March 2021. In other words, the main outcome was a bull market phase. Even though it is generally expected for the price to go up, no one could have known that this bull market phase will still be present even in 2021.
Another outcome, besides the higher costs of mining is the surge of mining farms and pools that are developed as a response to the high costs. Furthermore, the supply of BTC is also decreasing because the pace at which miners are approving new blocks of transactions is slowing down. In contrast, the demand is huge and is soaring for BTC and other cryptocurrencies.
Here it should be noted that the total number of BTC 21 million, and we have already mined 18.5 BTC that are in circulation. Each halving only slows down the rate at which new BTC enter the market, but it also boosts the price because obviously, demand is much bigger than the market supply.
This halving will diminish the reward of the miners to 3.125 BTC, and it’s expected again for Bitcoin to enter a bull market phase. However, no one is sure what will happen in the future, but a lot of predictions estimate that Bitcoin will reach a value of over $500,000 in 2030.