Bitcoin Halving in 2024 – Everything You Need to Know 

Bitcoin seems to have outperformed most cryptocurrencies in the 2022-2023 crypto winter, and one might be wondering, "What will happen to Bitcoin in 2024?" We replied to the "Bitcoin halving event".
Introduction to Bitcoin Halving
To get to the bottom of this incident, a complete review of the creation of Bitcoin is required. Since Bitcoin is a decentralized digital currency, anyone can generate Bitcoin through the digital mining process.
It involves using a powerful computer through a proof-of-work (PoW) process to decipher complex mathematical problems or encrypted hashes, verify transactions, and add them to the blockchain. Successful miners will be rewarded with pre-set bitcoin rewards.
Essentially, as a result of the Bitcoin block reward halving event, miners receive a 50% reduction in block subsidy rewards.
Satoshi Nakamoto introduced the halving event to control the Bitcoin inflation rate. Reducing the mining reward reduces the motivation to mine, which increases the scarcity of Bitcoin and increases the stock-to-flow ratio. In addition, creating Bitcoin scarcity makes it more precious and helps maintain and appreciate in value over time, especially as demand continues to grow.

Introduction to Bitcoin Halving
To get to the bottom of this incident, a complete review of the creation of Bitcoin is required. Since Bitcoin is a decentralized digital currency, anyone can generate Bitcoin through the digital mining process.
It involves using a powerful computer through a proof-of-work (PoW) process to decipher complex mathematical problems or encrypted hashes, verify transactions, and add them to the blockchain. Successful miners will be rewarded with pre-set bitcoin rewards.
Essentially, as a result of the Bitcoin block reward halving event, miners receive a 50% reduction in block subsidy rewards.
Satoshi Nakamoto introduced the halving event to control the Bitcoin inflation rate. Reducing the mining reward reduces the motivation to mine, which increases the scarcity of Bitcoin and increases the stock-to-flow ratio. In addition, creating Bitcoin scarcity makes it more precious and helps maintain and appreciate in value over time, especially as demand continues to grow.
The history of Bitcoin's halving
When the Bitcoin network went live in 2009, the mining reward, or Bitcoin mining subsidy, was 50 BTC per block. Satoshi Nakamoto, the anonymous creator of Bitcoin, has a miner reward reduction protocol hard-written into the Bitcoin code as part of its monetary policy.
As a result, the block subsidy halving code will be executed automatically after every 210,000 blocks completed, drastically slashing the rewards given to miners for the next four years.
Since its launch in 2009, there have been three halving events, with the first halving occurring in 2012, followed by 2016, and the most recent halving in 2020. As a result, the fourth halving will occur in 2024 with a block height of 840,000, with the fifth project expected to be achieved in 2028.

Bitcoin halving cycle
It is almost impossible to determine the exact date or time when the next halving event will occur, as it depends on the completion of 210,000 blocks. Since it takes about 10 minutes to confirm or add a new block to the Bitcoin network, the halving schedule occurs approximately every four years.
The technical significance of the Bitcoin halving in 2024
Bitcoin's halving cycle is significant because it fosters innovation and resilience in its native cryptocurrency, setting it apart from fiat currencies.
The Bitcoin halving event in 2024 is significant because it will affect how quickly new bitcoins can enter the market. The event will result in a reduction in rewards from 6.25 BTC to 3.125 BTC, potentially prompting miners to be more efficient. To maintain profitability, miners must find ways to optimize their operations as rewards decrease. This can drive technological advancements in mining hardware, resulting in more energy-efficient and powerful mining equipment.
Bitcoin's supply cap policy ensures that there are no more than 21 million bitcoins in existence, unlike fiat currencies that have no limit.
The economic significance of the Bitcoin halving in 2024
Historically, Bitcoin's halving events have exacerbated market scarcity for cryptocurrencies, leading to upward upward pressure on prices, which explains the bull run that occurs after each halving event.
Based on past events, popular social media expert commentator BitQuant predicts that Bitcoin's price could reach all-time highs before or after the 2024 halving event. This assertion is not surprising considering that all past events have occurred before Bitcoin's all-time price highs. BitQuant speculates that the price could reach an astronomical figure of $250,000, nine times the current value.
After the crypto winter of 2022 and the economic downturn of 2023, Bitcoin's 2024 halving schedule is crucial. By slowing down the creation of Bitcoin, it limits the supply of Bitcoin over time. The gold-like scarcity also applies here. Bitcoin's deflationary character attracts investors trying to preserve capital in a world where inflation is causing traditional currencies to depreciate.
Unlike the discretionary judgment of the central bank of the traditional monetary system, the halving event is predetermined, transparent, and predictable. Investors feel safe with this regularity, especially during unpredictable economic times. Bitcoin's tight monetary policy, executed through the halving, has attracted people who are worried about central bank actions and policy shifts.
Many gold enthusiasts consider Bitcoin to be a valuable asset. Gold has always been able to hedge against inflation and provide a safe refuge during economic downturns. Bitcoin in digital form has similar characteristics. Gold investors prefer the Bitcoin halving because it reduces the supply, which is similar to gold mining. The concept of "digital gold" suggests that Bitcoin could play a similar role in the digital age. The occurrence of the Bitcoin halving is noteworthy for long-term gold investors, as both Bitcoin and gold are deflationary.
The impact of the halving cycle on the price of Bitcoin
Since the halving reduces the incentive to mine Bitcoin, it creates scarcity and raises a fitting question: Does the Bitcoin halving increase the price of Bitcoin?
Looking at historical data from past halving events can provide valuable insights, as they all follow similar patterns. This is mainly due to the decrease in the introduction of new bitcoins, which leads to a decrease in mining rewards and inflation.
Accumulation phase
Bitcoin users typically accumulate Bitcoin before the halving, causing the Bitcoin price to stagnate or rise slightly. This phenomenon occurs before the first, second, third, and current halving events and lasts for 13 to 22 months.
Bull market phase
Past halving events triggered a bull market phase that lasted 10-15 months, followed by a steady increase in prices and new all-time highs. Bitcoin experienced only one brief correction (2016), but then rebounded and followed a typical bull phase trajectory.
Bear run phase
All previous bull markets ended with pullbacks or price correction phases that lasted about 600 days, although the last bull market only lasted about a year.
The impact of the Bitcoin halving on miners
Mining Bitcoin is resource- and energy-intensive. It is estimated that 1,449 kilowatts of electricity per hour are required to complete a single Bitcoin transaction. That's equivalent to 55 days of electricity in a typical U.S. household. The Bitcoin mining reward halving will have an impact on miners, as mining costs remain high while rewards are decreasing.
The industry standard for measuring profitability is $1 per megahash per second (TH), which refers to the money generated by mining rigs that generate one trillion hashes per second. One can make use of a mining calculator to find the hash rate and measure profitability.
While Bitcoin's price is volatile, at its peak in 2017, the Bitcoin mining price was $3.39 per TH/s, but by mid-2022, it had fallen to $0.104 per TH/s. The reward halving will further erode miners' profitability, so most miners can only hope to make a profit during the bull run.
Is Bitcoin Halving Good or Bad?
Bitcoin halving has its pros and cons. For example, a halving affects the issuance rate of new bitcoins, creating scarcity, which can drive the price of bitcoin upward. This comes at the cost of short-term Bitcoin price fluctuations, which are caused by the uncertainty caused by the halving event.
On the other hand, Bitcoin halving reduces profitability, which means that miners will receive half of the revenue from confirming new blocks while spending the same amount on computing and energy costs.
The halving could also have a negative impact on the Bitcoin network, as there will be fewer miners who will continue mining due to reduced profitability. Theoretically, this could expose the network to a 51% attack, as mining power would be concentrated in fewer participants.