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When Is The Next Bitcoin Halving? What You Need To Know In 2024

When is the Next Bitcoin Halving? Discover the exact date, potential impact, and how to prepare your crypto portfolio for this historic event.

Stefano Mclaughlin
Feb 13, 20241102 Shares18992 Views
The quantity of traditional currencies in circulation increases and decreases under the strict surveillance of the world's central banks. In contrast, the maximum quantity of Bitcoin is permanently set and cannot be altered. The cap for Bitcoin is set at 21 million, of which slightly over 19 million have already been mined. This leaves fewer than 2 million Bitcoins still to be mined. The Bitcoin system is designed to decrease the amount of new coins generated with every new block through a mechanism known as halving. Explore all you need to understand about the When Is The Next Bitcoin Halving?

Understanding Bitcoin Halving

An illustration of a man in a miner's hat and overalls using a pickaxe to break into a giant Bitcoin.
An illustration of a man in a miner's hat and overalls using a pickaxe to break into a giant Bitcoin.
Bitcoin halving, also referred to at times as 'halvening,' is an event in which the reward for mining new blocks is reduced by half, which means miners get 50% less bitcoins for processing transactions.
These halving events are predetermined to take place every 210,000 blocks, or approximately every four years, continuing until the total supply reaches 21 million bitcoins.
For traders, bitcoin halvings are significant because they cut down on the amount of new bitcoins entering circulation. This reduction in new coin supply can lead to price increases if demand does not wane.
Though in the past, bitcoin's value has seen a significant increase around the time of halvings, it's important to note that each halving event occurs under unique circumstances and bitcoin's demand can vary greatly.

When Is The Next Bitcoin Halving

The forthcoming bitcoin halving is anticipated to take place in April 2024, upon reaching 740,000 blocks. This event will reduce the block reward from 6.25 to 3.125 bitcoins. The precise timing of the halving remains uncertain because the rate of new block creation fluctuates, with the network aiming for an average of one block every ten minutes.

Significant Bitcoin Halving Events

  • Launch of Bitcoin -January 3, 2009, starting with the genesis block at block number 0, introducing a block reward of 50 BTC and resulting in 10,500,000 BTC until the first halving.
  • First Halving -November 28, 2012, at block 210,000, reduced the block reward to 25 BTC, with 5,250,000 BTC generated between this and the following halving.
  • Second Halving -July 9, 2016, at block 420,000, further cut the reward to 12.5 BTC, leading to an addition of 2,625,000 BTC.
  • Third Halving -May 11, 2020, at block 630,000, saw the reward drop to 6.25 BTC, with 1,312,500 BTC created before the next halving.
  • Fourth Halving -Projected for April 2024 at block 740,000, will decrease the reward to 3.125 BTC, expecting to add 656,250 BTC.
  • Fifth Halving -Expected in 2028 at block 850,000, will lower the reward to 1.5625 BTC, with an anticipated 328,125 BTC generated.
These bitcoin halvings will continue every 210,000 blocks until around 2140, at which point all 21 million bitcoins are expected to have been mined.

Trading Strategies For Bitcoin Halving

There are primarily two strategies for trading around the bitcoin halving event. Investors can either speculate on bitcoin's price movements through derivative products like CFDs or opt for direct purchase of bitcoin through exchanges. Explore the ins and outs of cryptocurrency trading to understand how it operates.
Steps to Trade Bitcoin Halving with Us:
  • Learn about trading cryptocurrencies with CFDs.
  • Set up a live trading account or start with a demo to practice.
  • Use our platform to search for 'bitcoin.'
  • Initiate your trading position.
Trading cryptocurrencies via derivatives like CFDs offers significant advantages, as it eliminates the need for direct ownership of the cryptocurrency. This approach allows you to:
  • Trade without needing an exchange account or digital wallet -With IG, getting started and placing trades can be done swiftly, bypassing the need for direct cryptocurrency ownership or a wallet.
  • Position yourself according to bitcoin's market movement -Derivatives enable you to speculate on both upward and downward price movements of bitcoin.
  • Leverage your trades -By using leverage, you can open positions with a modest deposit, known as margin. This approach provides exposure to a larger portion of the market with a relatively small capital outlay, enhancing the potential for profit as well as risk.

Reviewing The Impact Of The Last Bitcoin Halving

The last bitcoin halving occurred on May 11, 2020, reducing the mining reward by 50%, from 12.5 new bitcoins per block to just 6.25 bitcoins. This reduction in supply led to a bullish outcome for the cryptocurrency, with its price climbing from $6,877.62 on April 11 (one month before the halving) to $8,821 at the event.
Despite experiencing considerable volatility, bitcoin's price soared over the next year, reaching $49,504 by May 11, 2021.
This pattern of a significant price increase following the halving, followed by a notable decline around 12-17 months later, has been consistent with previous halvings in 2012 and 2016. Yet, even after these declines, the price of bitcoin remained significantly higher than before the halving events.

The Potential Effects Of Bitcoin Halving On BTC's Price

A crack splitting the Bitcoin in half, with the text "Halving BTC"
A crack splitting the Bitcoin in half, with the text "Halving BTC"
The future impact of the upcoming bitcoin halving on its priceremains speculative. Several analysts predict that, akin to past halvings, the price might surge post-event due to the reduced supply of new bitcoins entering the market.
Nonetheless, whether such a price increase occurs will hinge on the demand dynamics during the halving period. It's important to note that a rise in demand isn't guaranteed to happen – or even to stay the same.
Since the last halving in 2020, the cryptocurrency market has evolved considerably, with a plethora of well-established digital currencies now vying for investor attention.

The Mechanics Of A Bitcoin Halving

Embedded within the bitcoin network's foundational blockchain protocol is a mechanism that controls the pace at which new bitcoins are generated. This protocol obliges network computers to engage in a competitive process called 'mining' to validate transactions.
Miners are compensated with new bitcoins when they successfully confirm that the transactions they've chosen to process are legitimate. These transactions are grouped into 'blocks.' The blockchain is programmed to cut the miners' reward by half every 210,000 blocks, a process known as a bitcoin halving.

Frequently Asked Questions - When Is The Next Bitcoin Halving

What Is The Reason For Bitcoin's Halving Events?

The halving mechanism in Bitcoin's design occurs every four years to preserve the cryptocurrency's scarcity and act as a hedge against inflation. By diminishing the supply while assuming consistent demand, the expectation is that Bitcoin's value will increase, safeguarding it from the inflationary depreciation that affects traditional assets.

How Can I Minimize The Risks Involved In Bitcoin Trading?

Mitigating the risks tied to bitcoin trading can be achieved by leveraging CFDs to speculate on the cryptocurrency's price fluctuations. Utilizing these derivatives allows you to benefit from bitcoin's price changes without actually holding the coins, thereby avoiding the risks that come with managing an exchange account or a wallet.

Is It Possible To Profit From The BTC Halving?

Indeed, profiting from the BTC halving can be achieved by speculating on the price fluctuations of bitcoin in the period leading up to and following the event. Utilizing contracts for difference (CFDs) is a favored approach for this, as they allow for both long and short positions on bitcoin's price.

Conclusion

The anticipation around "when is the next bitcoin halving" underscores its significance in the cryptocurrency ecosystem. As this event approaches, understanding its implications on supply, demand, and ultimately, price, is crucial for both seasoned investors and newcomers alike.
The next bitcoin halving represents not just a technical adjustment, but a pivotal moment that could shape the future trajectory of bitcoin's value. Engaging with this event through informed speculation or strategic investment positions individuals to potentially capitalize on the shifts it brings to the crypto market.
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