SatoshiLibrary

Cryptocurrency for Beginners

What is the BITCOIN HALVING ? The 2024 halving date

2 min read
Every 4 years, there is a change in the Bitcoin algorithms and the number of Bitcoins which can be mined is divided in two , hence the name “halving”.

What is the Bitcoin Halving ? And when is the next one

The next Bitcoin Halving (a.k.a 2024 Halving Event) is expected to initiate on April 19th 2024.

The Bitcoin Halving is like a software a update on the Bitcoin Network. Contrary to a popular un-informed narratives, the Bitcoin halving IS NOT AN EVENT which happens in a day but instead happens over a period of months.

The bitcoin halving is an important buying indicator for investors in the crypto market cycle.

The halving is when institutional investors entered the market during the 2020 cryptocurrency bull run. 

When is the next Bitcoin Halving?

What actually happens during Bitcoin Halving?

Every 4 years, there is a change in the Bitcoin algorithms and the number of Bitcoins which can be mined is divided in two , hence the name “halving”.

Contrary to popular belief, the Bitcoin halving happens over a period of months and not in one day.

When the Bitcoin halving happens, the Bitcoin algorithm will  generate only half of the Bitcoin to miners as rewards for the efforts.

Miners have an important role which is not only to  power the blockchain by verifying Bitcoin transactions but also to create new Bitcoins.

This also means miners will need more powerful computers to compete for the Bitcoins.

Bitcoin Miner Rewards After Each Halving

What is the BITCOIN HALVING ? The 2024 halving date

Why IS the bitcoin halving  SO important for investors?

The Bitcoin halving is important because historically, it has coincided with the end of the previous bear market and the start of the next bull run.

The halving is a an important buy signal for institutional buyers.

Only 21 millions Bitcoins can ever be created and 18 million have already been mined.

How many Bitcoins are there
How many Bitcoins are there

What does this mean for you?

This means that historically, if you buy Bitcoin before or during the halving the odds of getting Bitcoin at an undervalued price is high.

Therefore, the odds of being in profit longer than in loss makes it a less risky investment entry.

How can you prepare for the Bitcoin Halving?

The best way is understand market sentiment.

As Bitcoin’s prices are easily affected by hype, an non-seasoned investor could easily have an idea of tops and bottoms based on mainstream media coverage.

What were the past halvings like?

Bitcoin Halving #3 – May 2020

Similar to the previous halvings, Bitcoin’s prices rallied months before the event and dumped resulting in prices crashing to $3873 or 80% of the November 2017 all time high of $17,000.

What is the BITCOIN HALVING ? The 2024 halving date

Bitcoin Halving #2 – July 2016

Leading up to the second halving, halving became more hyped and some savvy crypto-whales cashed out at the height of the hype. Some investors were likely spooked by the volatility.

*Remember that 2016 was 8 years ago, and the crypto community was still young

What is the BITCOIN HALVING ? The 2024 halving date

Bitcoin Halving #1 – November 2012

Fresh out of the 2008 sub prime mortgage crisis and dot com bubble, Bitcoin was a toddler with mostly nerds and geeks mining off their laptops.

Bitcoin Founder, Satoshi Nakamoto had abandoned the project in 2009.

What is the BITCOIN HALVING ? The 2024 halving date

The halving’s relationship with the US elections

The halving event also coincides with the US Elections and for the stock market this means potential economic uncertainty depending on the candidate.

So, institutions usually seek out seek out hedges as protection. 

In 2021, Bitcoin became an interesting hedge for institutions with the inflation which the Covid-19 pandemic brought on.

The 2017 bullrun also initiated after the 2016 halving.

 What can we expect from the 2024 halving?

In the past, we have seen Bitcoin prices rally up to the event, followed by a major dump.

Bullish Cryptocurrency investors are gambling on the probability that institutional buyers and retail buyers are waiting for the halving to enter the market once again.

This would in turn, lead to Bitcoin prices rising again.

However, remember these bets are based on historical patterns but no one knows the future  nor can be  100% certain when Bitcoin prices will reach $x price. 

All bets come with risks.

BSV and BCH Halvings Countdown

Since you’re here,

Remember to save the halvings date for Bitcoin Cash and Bitcoin SV.

Which are Bitcoin Forks.

If you found this article useful, then you might like “How safe is Bitcoin as an investment?” and after that, you can check out “What does it mean when a cryptocurrency is mined?

About The Author

Leave a Reply

Your email address will not be published. Required fields are marked *