Most anticipated crypto event in 2024: The Bitcoin halving
market capitalization amongst all crypto assets, Bitcoin plays a crucial role in shaping overall market dynamics, influencing investor behavior, and impacting price movements of the broader crypto universe. Understanding these correlations is essential for new investors looking to navigate the complexities of the crypto market effectively. However, particularly for Bitcoin, there are a couple of additional forces at play, both from its inherent supply dynamics, and an ongoing surge in demand from mainstream institutions via the newly launched spot Bitcoin ETFs. So for anyone interested in crypto investing, remember that there’s Bitcoin and then the rest of crypto. The “digital gold” narrative for Bitcoin has never been stronger and the upcoming “halving” will further cement that position in investor portfolios.
What is Bitcoin Halving
The one true value proposition of Bitcoin is its fixed supply schedule, with the 21 million BTC supply cap, programmed in the network’s algorithm for periodic release with each block mined. Bitcoin halving event occurs due to a feature within the Bitcoin algorithm. It involves reducing the mining rewards given for adding new blocks to the blockchain. When Bitcoin started, miners received 50 Bitcoins for each block added. However, after every 210,000 blocks or roughly four years, there is a halving wherein miner rewards get slashed by half. This process makes Bitcoin supply diminish over time, making it a digitally scarce asset with each passing event of the halving. The daily release of new Bitcoin decreases, strengthening its position as a store of value, in a world where money printing has become the norm for central banks. Investors should not look at BTC as an inflation hedge, but
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