What is it?
An event will happen in the Bitcoin and Cryptocurrency world that happens only once every 4 years. This is know as ‘The bitcoin halving’ or ‘bitcoin halvening’ (if you prefer the slighty slang version of the term). In simple terms, this means that the rewards for miners for mining a block on the Bitcoin Blockchain will be reduced by half. This in turn means that there are less supply of new Bitcoins available. Instead of 12.5 new BTC being available per mined block, it will be half that amount, so just 6.25.
When is it?
As we previously mentioned, the Bitcoin halving happens every 4 years.
The last one happened in 2020 and this next upcoming halvening will happen in May 2024. The exact date and time can be seen here: https://www.bitcoinblockhalf.com/
What does this mean for Bitcoin?
Ultimately it means less of a supply flow of new Bitcoins into circulation, and the simple law of supply and demand dictates that this should then have an impact on the price. Usually a reduction in supply would lead to an increase in the price of a commodity or asset, however that doesn’t mean that it will automatically happen in this instance. As many traders and cryptocurrency holders know about this 4 yearly reduction in supply it could well be that it is already ‘priced in’ to the current price of a BTC, that is, the event has been anticipated and the price is where it is as a result.
Some analysts and crypto traders are however anticipating a price surge as FOMO (Fear of missing out) takes hold and retail investors and possibly even institutional investors decide to start buying up Bitcoin in order to Hodl (Hold on for dear life) as the price potentially starts to increase.
These next few months and years will be very interesting, there is really quite a buzz around this event, particularly on crypto twitter, if FOMO does take hold and more people start to buy the diminishing supply then the future could be bright for the number 1 cryptocurrency.
Remember, if you do decide to invest, you don’t need to buy an entire coin. It is possible to buy half a bitcoin.
Is it possible to purchase half of a Bitcoin?
