One of the most popular and important terms to know about as a BTC investor is “Bitcoin halving”. This is a crucial process and every crypto investor and trader needs to be aware of what it is, how it works and if it offers any benefits or not.
Knowing such details can help the beginners in developing a better and deeper understanding of the crypto space in general and especially buying and trading Bitcoin.
Bitcoin is the largest and most prominent crypto asset and is being adopted on a global scale by companies, organizations and even countries. However, elements such as halving are important to know about as it can help direct people in the way they should invest or trade the digital asset.
This is why, whether you are new to the crypto space or not, you should know what halving is, when the next Bitcoin halving will occur and other relevant aspects. In short, the details mentioned below are some of the most crucial factors every crypto trader should know.
What Does Bitcoin Halving Mean?
Halving is a process where the future supply of the digital asset is reduced to half. This feature has immense significance as it is meant to keep the value of the flagship crypto asset afloat.
New Bitcoin is created through the process of mining. The halving process cuts the supply of Bitcoin in half and since the demand is more and supply is less, the value and price of BTC keeps growing. In short, the process of halving is meant to keep Bitcoin from inflation, which is crucial as it is the most important digital asset in the world.
There are several other aspects of halving, such as when it occurs and when the next Bitcoin halving will happen, which is essential for you to know as well. The major details are mentioned below.
Affects on the General Market
Since Bitcoin is the flagship crypto asset it heavily dominates the crypto space and affects the price fluctuations of other altcoins as well. This means that if the price of Bitcoin surges other altcoins also see an increase in their prices. On the other hand, if the price of BTC decreases so does that of the altcoins as people start to pull their funds out of other cryptocurrencies and start investing in BTC instead.
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Therefore, because of the Bitcoin halving process the value and price of the digital currency keeps increasing and that’s how it affects the general market.
What are the Mechanics of Halving?
As mentioned above, Bitcoin halving is when half of the future supply is cut in half. To keep a track of the halving process and when it occurs there are two different countdowns. The ETA on both the countdowns can vary considering a new block is added approximately after every 10 minutes. This is why the ETA changes on a daily basis.
Therefore, the halving process occurs after every 4 years but because of the addition of new blocks the ETA can change. This is why a more accurate way of calculating the next Bitcoin halving is after every 210,000 blocks.
When Will the Next Halving Occur?
As mentioned above, Bitcoin halving occurs after every 4 years. The BTC network was launched in 2009 and therefore the first halving process occurred in 2012.
According to the calculation mentioned above, the last halving occurred in 2020 and the next Bitcoin halving is estimated to happen in 2024.
After the fourth BTC halving, the reward will be cut down to 3.125 BTC per block. The halving feature will continue to occur until the inflation for the flagship crypto asset is 0%.
Are There Benefits of Halving?
People who enter the crypto space look for opportunities to benefit from crypto investing or trading, even though it is not as simple as one might think. In order to benefit from crypto trading or investing, people need to have proper information and experience.
Crypto investors or traders can also benefit from Bitcoin halving as there are several ways to do so. One thing you must keep in mind that profiting from halving may have worked in the past but it does not guarantee that it will work in the future as well.
However, if you are interested you can benefit from the buy and hold strategy. This strategy allows people to buy and store the crypto king in your wallet hoping for the price of BTC to increase after the halving process.
How to Invest in BTC?
Buying Bitcoin can be easier, less stressful and less risky if you choose a secure exchange that also suits your needs the most.
Since there are numerous options for you in the market, you should look through your options and identify a secure exchange based on the following features.
- Low and transparent fee structure
- High-end security
- Advanced trading tools and options
- Impressive customer support
- Beginner-friendly interface
Understanding the concept of Bitcoin halving can simplify numerous aspects for crypto traders, especially the ones who are new to the crypto space. Therefore, if you are interested in trading crypto then you need to know the above-mentioned details.