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By Shree Venkatesh CPA
Bitcoin halving –the most sought after event in the crypto world is right around the corner.
The date of the anticipated event is said to be April 19/ April 20.
Bitcoin Halving event effectively reduces the supply of new bitcoins to half.
Nudged by scarcity principle prices of the bitcoins are supposed to go up since fewer bitcoins will be mined.
This event happens every 4 years or 210000 blocks on bitcoin block chain. There have been 3 halving events till now.
At the advent of bitcoins, the miners would get 50 tokens on breaking through a complicated formula. This was halved to 25 in 2012, 12.5 in 2016 and 6.25 in 2020. Now in 2024 it will be halved to 3.125.
There is a huge anticipation that the halving event will escalate the bitcoin prices for sure.
It is great that the halving event is happening around the birth of Bitcoin Exchange-Traded Funds (ETFs). This introduces a new positive dynamic to the crypto world.
As we know Bitcoin supply is not infinite. It is capped to $21 Million coins. The halving mechanism controls inflation and enables maintenance of scarcity since it reduces the new bitcoin creation rate.
The culmination of reduced miner rewards which will be incorporated by the upcoming halving event and the fund introduction inculcated by the emergence of ETF creates positive synergy whereby the price fall of bitcoin seems to be tough in 2024
Historically we have seen bitcoin prices have escalated post every halving event. Expectation is the same this year too but taking into consideration the volatile nature of Bitcoins, the economic conditions & the demand supply dynamics of Bitcoins we will see whether the bitcoin prices will escalate by the end of the year as expected.
The halving event this year is a bit unique and trickier compared to prior years since Bitcoin has already surpassed the last cycle’s high. This year the price trend prediction is even more trickier since there will not only be a planned supply shock post halving but also there is a demand shock due to emergence of Bitcoin ETF.
2024 Halving event will definitely be more exciting and unpredictable than anticipated. So let’s hold on to our seats and enjoy the roller coaster ride in the crypto world.
Author Bio
Shree Venkatesh CPA
I am a CA ( Final ) and CS from India and a CPA from USA. I am a published author who loves to dab with numbers at the same time. I find the crypto world to be very interesting hence I punch my passion for writing with my love with the financial and accounting world.
Disclaimer
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