It’s been four years. This means that Bitcoin Halving 2024 is approaching, a very important event that occurs periodically and is an indispensable part of cryptocurrency. This April, we will hold this historic event on a day that has not yet closed because it is tied to block mining. To be The fourth halving in Bitcoin historyAfter what happened in 2012, 2016 and 2020.

Here we tell you everything we know about this year’s halving, how it works and what’s special. If you are interested in the cryptocurrency industry, you should undoubtedly mark Bitcoin Halving 2024 on your calendar.

Bitcoin Halving is expected to happen in 2024 Around April 20, 2024. The date is not fixed as it varies slightly depending on the block mining rate.

How does halving work?

A ‘halving’ event is planned every 210,000 blocks in the Bitcoin network. At this scheduled time, the reward for mining each block is halved. This means it costs more to add new blocks to Bitcoin.

When it started in 2009, mining a block yielded 50 bitcoins. The first halving took place in 2012 and the reward was then 25. In 2016, it was 12.5. At 6.25 in 2020. And as soon as the 2024 Bitcoin Halving happens, block reward will be 3,125 BTC.

The main goal is to make mining increasingly difficult. After all, Bitcoin was designed to be limited. There will be at most 21 million bitcoins. Still missing, we’re at around 92 percent. It is estimated that this limit will not be reached until 2140.

Bitcoin halving specific to bitcoin supply and demand. As fewer bitcoins are produced with each mining, the theory is that their value increases. This is exactly the idea that all analysts agree is behind the recent rise in Bitcoin price. This has happened in previous years and it doesn’t look like this year will be any different.

This is expected to affect the price

If we follow the trend of previous halvings, this fourth halving in 2024 should cause Bitcoin. reaching new all-time highs. The market will then decide how this continues, but on previous occasions it later softened and fell.

Historically, halvings have served to create expectation. Bitcoin investors generally greet this date with enthusiasm, which helps push the price higher. It should be noted that the effect of the halving is gradually decreasing. In 2012 and 2016, the halving caused an increase of over 10,000% from minimum to maximum. But it was a time of great growth for Bitcoin. In 2020, growth was around 400%. Bitcoin price is expected to increase after the 2024 halving, but predictably less.

However, it is quite difficult to predict the Bitcoin price. Reward for each block is not the only factor. In addition to scarcity, Bitcoin is also affected by external economic events, sentiments of the investment ecosystem and regulations of the sector. Many factors can affect the price.

What’s special about this year?

This 2024 Bitcoin halving will occur under different conditions compared to previous years. Bitcoin is a very well-established cryptocurrency and Facing very different challenges than in 2020. At that time, the world was experiencing a global Covid-19 epidemic. Bitcoin’s biggest challenges now come from the regulatory side.

Another issue of concern regarding Bitcoin is the incentives for miners. Miners will receive less BTC for each block and many are doing calculations to see if this is still profitable for them. Unless the price of Bitcoin increases significantly, many miners will choose to devote themselves to another activity or move to regions such as Africa where the cost of energy and equipment is cheaper.

The new Bitcoin halving is still a few weeks away, but the price of Bitcoin has already surpassed $70,000. As the date approaches, we will see how investors react and what the Bitcoin price will be like after the halving has passed. If everything continues the dynamics of previous events, the price of Bitcoin may exceed $ 100,000 this year.

Image | Michael Fortsch

in Xataka | The Bitcoin landscape will change radically in 2024. And the price will start to reflect that