The next Bitcoin halving will be in 2024. It will significantly reduce the mining reward and it will be much more difficult for new miners to extract resources from the cryptocurrency network. This procedure will take place regularly, so you should be prepared in advance.
What is halving
Every 210,000 blocks there is a decrease in mining rewards. Users begin to receive 2 times less Bitcoin for the same actions. Gradually, as more active participants are introduced into the chain, the complexity of operations also increases.
In fact, halving reduces the chances of each miner and at the same time reduces the real profit that each participant in the chain receives. There have already been three such events: in 2012, 2016 and 2020. The initial reward was 50 BTC per block.
Why do we need to reduce production
Halvings are a kind of limiters that prevent inflation. If the reward stayed the same, then Bitcoin would have no supply cap. It could be produced indefinitely.
Production limit is a news deterrent. Unlike modern cryptocurrencies, where the number of tokens is in the billions, the maximum amount of BTC will be 21 million and will be reached only by 2134.
Because of this, a certain excitement is created and demand is artificially increased. It cannot be said that in 50 years it will still be possible to earn 0.001 BTC as easily as it is now. To do this, you will have to work much longer in the pool. Thus, the value of each asset in the chain gradually rises.
This is the official position of the developers. Another version of why a mechanism for reducing production was needed at all - a deterrent for the market. BTC skyrocketed, which means that related products like video cards, processors and other devices that can be used have increased significantly.
To avoid overheating and unrealistic price increases, which could at one point force legislative systems to impose serious restrictions, additional mechanisms were devised. This is a definite deterrent, both for users and the government. In order to prevent excessive interest in the industry and some early legislative restrictions, as an option, a containment mechanism was introduced.
When will Bitcoin halving happen in 2024
Bitcoin halving date in 2024 is April 10th. On that day, the block reward will be halved to 3,125 BTC.
Bitcoin halving counter includes 2024, 2028, 2032, 2036 and beyond. Approximate term - 4 years. After this time, the reward will decrease by 2 times until it reaches 1 satoshi. This is the minimum currency in the system.
Due to the fact that each member of the network can participate in the subsequent development and modernization of the system, the future may change. In 20 years, they may well increase the production ceiling a little, fix the cost, or find another way to artificially accelerate the rate.
You can focus on graphs and counters, but this is not the most reliable source of information. It is better to constantly monitor the news and see how the biggest players make decisions.
Will the halving affect the BTC rate
It is logical to assume that the reduction in production will directly increase the exchange rate by 2 times. Miners will have to spend twice as much effort to get the previous result. In reality, it doesn't quite work out that way. The market is preparing for the halving in advance, and the peak value of BTC and other cryptocurrencies comes about a year after this event.
Reward reduction does not directly affect the cost due to several reasons:
- Large batches of BTC do not end up in the hands of miners.
- Influence of investors and market whales is higher.
- Value is based on news and perspective, not current situation.
Crypt is a speculative asset. It has no real physical value and is provided only by prospects. This can be compared to the modern stock market: expectations, not real forecasts, move prices up. A company may be unprofitable, but worth several billion. A similar situation in the crypto market.
Therefore, it is not worth expecting that after a decrease in production, the price of BTC will skyrocket. The market has long known the exact date and time, so you won’t be able to make money directly. You can try to start investing in Bitcoin in advance to take advantage of the small price difference after April 10th.
Judging by adjacent markets, the situation in the market of chips and computer components may change slightly.The rampant demand for video cards will gradually fade away - they will bring less and less money, and in any case, miners will have to switch to other equipment. This will reduce the burden on manufacturers and slightly ease the burden on Taiwan, where the main chip companies are located.
Halving is more likely to benefit adjacent markets. Until the next surge of interest in the cryptocurrency industry comes, other industries can feel a little calmer. More accurate forecasts can be given only after the publication of at least some news about the industry.
Bitcoin halving in 2024 - reduction of the reward for each issued block. It will happen on April 10, and from then on, miners will receive 3,125 bitcoins. This will cut the profits of farms and pools. It is recommended to prepare in advance for this event.
