Here at Digital Wager Wire, we continue to examine all things Cryptocurrency. This week’s article looks at Bitcoin halving, asking what is it and whether should you buy before the next one. This could come in handy in case you like to invest or deposit at the top Bitcoin betting sites.
Bitcoin Halving Explained:
What is Bitcoin Halving?
By design, Bitcoin will be halving soon as part of its rotational process that the network automation commands through hardcoding.
Here at Digital Wager Wire, we investigate this process that happens every 210,000 blocks and effectively slashes the issuance rate by 50%.
The halving is predicted to be due sometime in April of 2024, once the number of blocks hits 740,000. The network generates a new block on average approximately once every ten minutes and the exact date is not yet known. Upon the next halving process happening, the current block reward worth 6.25 will fall to 3.125 from Block No. 741,000 onwards.
Why do they halve Bitcoin?
Bitcoin halving was a theory written into the algorithm to help maintain scarcity which should help counteract inflation. The theory behind the process was that by reducing the issuance rate, the price of Bitcoin would naturally increase should the demand remain the same.
Here at Digital Wager Wire, we have logged the details of the halving process in the table below with dates of any previous halving with the approximate dates of the next two events. The table details how the block rewards have fallen on each occasion while accounting for the new Bitcoins produced between halving.
Bitcoin Halving Schedule
|
Event |
Date |
Block Number |
Block Reward |
New Bitcoins between events |
|
Launch |
9 January 2009 |
0 |
50 |
10,500,000 |
|
First |
28 November 2012 |
210,000 |
25 |
5,250,000 |
|
Second |
9 July 2016 |
420,000 |
12.5 |
2,625,000 |
|
Third |
11 May 2020 |
630,000 |
6.25 |
1,312,500 |
|
Fourth |
April 2024 |
740,000 |
3.125 |
656,250 |
|
Fifth |
2028 |
850,000 |
1.5625 |
328,125 |
Should I Buy Before the Next One?
At Digital Wager Wire the question to ask is should you buy before the next halving?
In investing or any sort of wagering, past performance is only an indicator of perhaps what can be expected and no guarantee of outcome.
In the previous cycles, there has often been a surge in price during the weeks and months prior to the halving. Interestingly, on those occasions, a bigger hike in price has followed the event.
That illustrates that there are trends and historical fluctuations around the halving and encouraging evidence that you should strongly consider buying before the event.
Will EFTs Be a Positive Factor?
If you have been reading our Digital Wager Wire series investigating the cryptocurrency markets, you will have seen our feature on EFTs (Exchange Traded Funds) in the article What Is a Bitcoin ETF?, where we detailed how Greyscale’s case against the SEC (The U.S. Securities Exchange Commission) opened the door for a slew of major financial firms who will be bringing their own EFTs to the cryptocurrency markets.
Now following the case, high-rolling financial giants, Fidelity, Invesco, and BlackRock look set to flood the market with a forecast of $100 billion.
These traditional institutions of the investment industry will be bringing fresh money from their large portfolios of investors, which is bound to bring further buoyancy and trust to cryptocurrency that’s never been seen before. That inevitable increased footfall will be a huge positive, in fact, there will be more households around the globe that will be invested in crypto than ever before which will naturally bring higher levels of acceptance.
The future looks bright so get buying before the halving
The bear market days of cryptocurrency are now consigned to a thing of the past after the crash two years ago. Don’t be fooled though, as there has never really been a bad time to buy crypto if you’re after long-term profit for your investment. When the EFT monies that are expected, explode on the scene in the immediate future of the digital currency it will bring further depth and more secure funding for the community in the long term.
If the EFTs go as big as expected, cryptocurrency will have a foothold in many households previously untouched by the digital age of cryptocurrency.
Conclusion
The advice here at Digital Wager Wire is to get buying before the halving as, historically, it seems a shrewd time to increase those crypto wallets.
