Bitcoin explained in 60 seconds - part #3

Bitcoin halving 2024

Bitcoin halving takes place sometime between April and May.

Many people are very excited about this moment.

It could be the start of the bull run

That’s something we have all been waiting for.

So, what is Bitcoin halving?

For now, I will assume for a moment that you know how the blockchain works and what Bitcoin Mining is.

In short, it is halving the rewards for bitcoin mining. Currently, a block reward (verified) for miners is 6.25 BTC, so this is going to be 3.125 BTC in 2024.

That was pretty easy, wasn't it? ;)

But it is also good to know why this takes place.

It has never been made clear by Satoshi Nakamoto (creator of Bitcoin) why the halving occurs. Many traders say it causes effects on the price and is most likely positive. The less BTC enters the market the more it causes Bitcoin to increase in value.

As mentioned earlier, two things are set in stone for bitcoin:

- There are up to 21 million bitcoins

- Last share of bitcoin will be minted around 2140.

That makes Bitcoin's inflation transparent.

One conclusion you can draw immediately is that inflation is only decreasing.

Instead of your money becoming worth less, as with ECB monetary inflation, you see the bitcoins being added less and less. That, in theory, is a recipe for increasing value.

If you look back at the history of halving you don't see much difference in the first few months. After 12-18 months after the halving we see huge increases in the price.