Bitcoin Halving 2024: What to Know
Why Investors are hyped about the Halving.
April 20th, 2024 forged itself as a significant historical reference in the history of Bitcoin and other cryptocurrencies. It was the day the Bitcoin halving occurred, the fourth of its kind.
What is this Bitcoin halving?
At Bitcoin's inception and creation, it was structured that at every 210,000 blocks mined (roughly every 4 years), miners' rewards would be cut in half.
Miners are the entities that verify transactions on the Bitcoin's blockchain and maintain its security, receiving newly minted bitcoins as compensation.
Initially, the block reward for miners was 50 bitcoins per block. The first halving occurred in 2012, reducing the mining reward from 50 to 25 BTC per block.
The second halving in 2016 dropped it further to 12.5 BTC per block. The third halving took place in May 2020, slashing the reward to 6.25 BTC per block.
Why is it? Why slash the reward of those hard working miners into half?
The essence of the halving is to control the supply of new bitcoins entering circulation over time.
It is a mechanism that puts a check on Bitcoin's inflation rate by systematically reducing the rate at which new coins are created.
The ultimate goal is for Bitcoin's total supply to be capped at 21 million coins, increasing its scarcity.
Effects of Bitcoin Halving.
After halving, new bitcoins enter circulation at a slower rate, decreasing the available supply.
Following the principles of supply and demand in economics, this scarcity can potentially drive up Bitcoin's value and historically, Bitcoin's price has reacted positively in the years following halving events.
Now this halving impact often sloshes over into the broader crypto space too. We've seen altcoins and DeFi tokens pump after previous halvings as the hype grows and speculative money floods in, chasing those gains.
You can definitely see why investors are excited at the potential for another crypto bull run and if history rhymes, we could be in for an exciting second half of 2024 and beyond.
Which is exactly why at O3 Finance School, we're gearing up to drop a full class breaking down everything you need to know to profit from the post halving.
We'll cover coin analysis, trading strategies, risk management - you name it! You will be equipped with everything you need to make a solid headstart in the Blockchain space.
More details coming soon. Keep your eyes peeled.😉