“About half of Bitcoin” Bitcoin Halves Coming up again on April 19-20, 2024, this is an important event of interest to blockchain investors. And is expected to have a significant impact on the price of Bitcoin and the crypto market.
Today “Krungthep Durakij” will take you deeper. Bitcoin Halves Both past, present and future, what will happen next?
What is Bitcoin Halving?
Bitcoin Halves It happens every four years with the aim of halving the number of newly created bitcoins. Mechanism of action Bitcoinn designed Satoshi Nakamoto Creator of Bitcoin to create a total of 21 million coins
The program is set to halve the reward for mining a new Bitcoin every 210,000 blocks, and will take about 4 years. Bitcoin The newly created amount is halved every 4 years.
Bitcoin has been halved 3 times already.
- Number 1: Bitcoin Halving Beginning November 28, 2012, block rewards dropped from 50 Bitcoin to 25 Bitcoin per block, marking the beginning of Bitcoin becoming a deflationary asset.
- 2nd Time: July 9, 2016 Block reward reduced from 25 Bitcoin to 12.5 Bitcoin.
- 3rd Time: 11 May 2020 Block reward reduced from 12.5 to 6.25 Bitcoin.
What time does bitcoin halve? No fixed date. But this is expected to happen at the end of April, on the 19th and 20th, which will reduce the block reward from 6.25 bitcoins to 3.125 bitcoins.
A bitcoin halving will not have a beneficial effect on the price
Meanwhile, some argue that the current price already reflects a decline in volume. Some investors believe that the impact of halving Bitcoin's current price may already be calculated. Therefore, the price may not change or change very little after the bitcoin halving.
Also, most of the Bitcoin entering the market comes from miners. But information about crypto mining operations, how many bitcoins are held and when bitcoins are sold is not available. There is less transparency and if these miners sell their bitcoins, it will cause the price to drop. Additionally, the dynamics of the crypto market are complex. Limited information makes it difficult to predict which factors will affect Bitcoin's price.
Summary of price trends after the Bitcoin halving
Overall, the price of Bitcoin will increase after the halving event, but returns may vary from cycle to cycle.
Past information
- After half of 2012: Bitcoin price went from $12 to $1,000 in less than a year.
- 2016 After Half: Bitcoin Price Rises from $650 to $19,700 in 18 Months
- 2020 After Half: Bitcoin Price Rises From $8,000 To $69,000 In One Year
But remember that past results do not guarantee future results. Because the crypto market is so volatile and there are many other factors affecting the price of Bitcoin, it reached a new high of Bitcoin a month ago, which analysts did not expect.
This bitcoin halving could lead to a “supply shock”.
Bitcoin halving this time may have a more severe impact than previous cycles. This is due to two main factors: 1. Reduced mining rewards means fewer new bitcoins will be circulating in the market, and 2. Financial institutions will buy more bitcoin. Given the interest from financial institutions, Bitcoin ETFs have attracted institutional investors. This increased buying pressure pushes up the price of Bitcoin.
This could lead to a supply shock, where the amount of bitcoin available for trading could decrease significantly and cause the price of bitcoin to fluctuate wildly and rapidly.
However, regulators have repeatedly warned that bitcoin is a speculative market. It is driven by trends and “FOMO” (fear of missing out) and poses a real risk to investors. Although they have simultaneously approved Bitcoin trading products.
See Chain analysis, Reuters
“Avid gamer. Social media geek. Proud troublemaker. Thinker. Travel fan. Problem solver.”