All You Need to Know About the 2024 Bitcoin Halving

By  //  November 2, 2023

Digital coins have become very popular over the years. As they grow in popularity we see more types of digital currencies being created. Digital coin prices are one thing that’s attracted buyers and miners alike.

Due to digital coin volatility, the Stellar price we see today could be different tomorrow.

With so many digital coins being developed there’s one coin that has stood the test of time: Bitcoin. Because of the coin’s popularity the algorithm for mining the coin was created to curb inflation and retain scarcity. Bitcoin halving is one of the significant events associated with the digital coin. This article will look into the 2024 Bitcoin halving and what to expect..

What is Bitcoin Halving? 

The amount of Bitcoins awarded to miners is reduced by half every four years. This will be done until the 21 million Bitcoins have been virtually mined. The last halving is estimated to be around the year 2140. The halving process helps Bitcoin become an inflation-resistant resource while maintaining scarcity.

There’s a cap on the number of coins that can be created in Bitcoin. Its scarcity serves to uphold its worth. There will only be 21 million Bitcoins in circulation and the number of new Bitcoins added to the network will be halved every four years which are the two ideas that apply to the scarcity notion.

The Bitcoin halving process works with the supply to reduce the amount of coins entering the Bitcoin network. This halving process is automatic once a block with a certain number in the Bitcoin blockchain is mined.

Expectations for the 2024 Halving

Halving events commonly bring so much attention to Bitcoin as people anticipate a price increase. No one knows the outcome of a halving event. The past anticipates that there will be a price increase.

The anticipated price increase is based on the theory that the supply of Bitcoin declines while demand remains the same. This means the price will be pushed primarily based on historical halving events. The most recent halving event saw the price of Bitcoin continue to rise after the event. In past halving, it rose by more than 559%.

The next halving event is set to reduce mining rewards. The reduction in rewards will likely reduce the profitability of mining Bitcoin for miners. 

Unless the price of Bitcoin increases significantly, there’s likely to be a pause in investments or new mining hardware for the next few months. In some cases, they will shut down inefficient mining hardware as it won’t generate enough Bitcoins to cover operational expenses.

As block rewards decrease, miners will likely find mining less profitable, reducing mining activity. The aim is to find a solution by maintaining the desired block creation rate.