BTC halving ETA: April 24, 2024 | 16:00 CET
A Bitcoin halving is when block rewards for miners on the Bitcoin blockchain are cut in half to reduce the number of new coins entering the network. The initial Bitcoin block reward was 50 BTC. Currently, the block reward is 6.25 BTC and after the next halving the block reward will be 3.125 BTC.
The Bitcoin halving countdown has kicked into high gear. With the biggest crypto event of 2024 on the horizon, we have some exciting giveaways lined up for you, so watch this space!
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Every 4 years (approximately) or every 210,000 blocks.
A Bitcoin halving is when the block rewards of the network are cut in half to reduce the number of new coins entering the Bitcoin network.
The halving is set to occur after 210,000 blocks are mined, but the timing varies. Each block typically takes 10 minutes to mine, but as the hashrate (computing power) fluctuates depending on the number of miners on the network, the exact halving date is difficult to predict.
Looking at the historical data, there’s good reason to believe that the next Bitcoin halving could result in a BTC price surge and potentially a bull run. For example, in the last halving, the Bitcoin price grew from roughly $8,900 in May 2020 pre-halving to over $64,000 by May 2021. However, it’s also important to remember that past performance is not an indicator of future value and you should properly consider current market conditions before investing.
The creation of new Bitcoin is authenticated through a process called mining, which relies on software applications that run on specially designed hardware. Miners worldwide connect their devices to form a peer-to-peer network. Together, they maintain the Bitcoin ledger by verifying and approving legitimate transactions.
With the right (and most expensive) hardware, it can about 10 minutes to mine 1 Bitcoin. However, for most users, it typically takes around 30 days.
There are multiple factors that influence Bitcoin’s price including; supply, demand, market sentiment, competing cryptocurrencies, macroeconomics, regulation, legislation, and the halving itself. Therefore it is hard to make an accurate price prediction as there are so many variables to consider.
Buy Bitcoin from a reputable and secure cryptocurrency platform. You can protect yourself from bad actors by storing your assets offline in ‘cold storage’. These offline wallets can provide a high level of security for cryptocurrency as crypto keys are kept offline, meaning hackers and bad actors cannot get access to these funds without physical access to the device. Find out more about different methods of crypto storage.
Bitcoin does offer notable upside potential compared to traditional asset classes, but it is vital to understand that Bitcoin investment does come with risk as its price is volatile. Like many other assets, Bitcoin’s prices fluctuate based on the impact of various factors such as global financial events, wars, government regulation and even popular culture. Furthermore, news events, security breaches, and uncertainty in the intrinsic worth of Bitcoin as a store of value can also inflate risk. Overall, you should diligently weigh up all the risks before approaching any investment.
Previous Bitcoin halvings have hugely impacted the wider cryptocurrency market. The publicity and scarcity around halving events have encouraged increased participation and investment as other major cryptocurrencies have seen significant market cap growth during these periods. This spillover effect demonstrates the considerable impact that Bitcoin has on the wider crypto economy.
The total Bitcoin supply is fixed at 21 million bitcoins and once they are all mined, the miners will no longer receive bitcoins as rewards for solving complex transactions. However, they will be compensated via transaction fees.
Mining difficulty measures how difficult it is to solve the complex cryptographic puzzles used in the mining process of Bitcoin and other cryptocurrencies that use a Proof-of-Work system.