Anycoin Direct is one of the oldest Dutch crypto exchanges that is active throughout Europe. Her goal? Making cryptocurrency accessible to everyone. The company explains what Bitcoin halving entails especially for budding crypto billionaires. Because inflation seems to be the talk of the town in the physical world these days, a smart solution has been devised for this in the world of Bitcoin. And to give you a little tip of the veil; the halving phenomenon is expected to occur in less than a year…
Anycoin Direct is one of the oldest Dutch crypto exchanges that is active throughout Europe. Her goal? Making cryptocurrency accessible to everyone. The company explains what Bitcoin halving entails especially for budding crypto billionaires. Because inflation seems to be the talk of the town in the physical world these days, a smart solution has been devised for this in the world of Bitcoin. And to give you a little tip of the veil; the halving phenomenon is expected to occur in less than a year…
Every transaction made with Bitcoins takes place on the blockchain. A Bitcoin miner is someone who generates Bitcoins by verifying various transactions with a program on their computer and bundling them into a “block”. These miners are then rewarded in - yes - the form of Bitcoins. However, for every 210.000 blocks, these rewards are halved. This is what they call Bitcoin halving. Designed to control Bitcoin inflation.
For example, when mining Bitcoin in the early days, you received 50 Bitcoins per block found. You received these rewards from a found block if you were the first to solve a cryptographic puzzle. This process is called mining. However, unlike fiat currencies such as the euro or dollar, there is a limited supply of Bitcoin. Satoshi Nakamoto, the creator of Bitcoin, has therefore decided to halve the reward for finding the solution to the puzzle every four years.
Now you may be wondering what such a halving does to the price of Bitcoin. Now there was during the first halving in 2012 there was a pre-halving upward trend, resulting in a price increase of 341% during the run-up. The second time in 2016, Bitcoin rose 112% in the nine months leading up to the halving. History has taught us time and time again that the pre-halving and post-halving periods are good for the price development of Bitcoin. The price of 1 BTC in 2012 during the halving was $12.35 and half a year later $127. In 2020, 1 BTC was $8821 during the halving. Six months later it was $10943.
The next halving
Now you may be thinking; Get a good computer and start mining. However, this is not that easy. It requires expensive equipment and electricity costs can also increase significantly. However, as soon as your income as a miner halves, the question is whether it is still profitable to mine. However, if the price of Bitcoin goes up, the miners, who are very important for Bitcoin, can continue their work as usual. With the previous one halvingThis was also the case in 2012, 2016 and 2020.
The next halving is expected around the end of March 2024, according to the blockchain. Then miners will only receive 3.25 Bitcoin for successfully creating a block. Although it is of course a bit of a waste of money, the company dares to look at previous developments halving– cautiously predicting that the price of Bitcoin will increase after 2024.
