Hello friends,
I am doing good, and I hope that you are having a good time with your near and dear ones.
Wherever I read about Bitcoin at present it talks about the halving event also. I did not know much about it so I spent some time on a few articles to know more about it. This is my learning exercise to have an even better understanding of Bitcoin halving and why it happened and what impact it brings in Bitcoin mining. I think it is very important for us to have some information about Crypto and keep ourselves updated.
Bitcoin halving is a process that happens once in four years. The exact time is not confirmed as it is dependent upon the block number however on an approximate basis it can be considered four years. The last Halloween event happened in April 2020 and now in 2024, we are going to have it again. In this process, the mining reward is cut by 50%. What I'm trying to say is that some rewards for Bitcoin mining and with halving their rewards are reduced by 50 or can say cut by half.
We can also say that this is a loss for Bitcoin miners which is true in a way. This is a loss for them because their rewards are reduced by 50% and this is a big amount but if you look at the market based on historical data you will see how things change after Bitcoin halving. Going by the Bitcoin halving historical performance this market has increased nicely.
Above is the table that can give you an idea of how the rewards have been reduced starting in 2012. After the upcoming halving, the reward will be 3.12 Bitcoin on each block whereas it was 25 in year 2012. It's a big shift in the overall count for Bitcoin but there is also a big increase in Bitcoin value in the market so going by the value can make you understand that there is no loss for Bitcoin holders and also for the miners.
The market is kind of stable in this situation but people are expecting that there will be a drop in Bitcoin price around the event day. I don't know whether it will happen or not because I have not much knowledge about this market but I believe that after the event there will be value appreciation. It will not be happening immediately but based on past performance we have seen how the prices are increased within a year so this can happen.
It is interesting to see how things are happening in the market and it is an exciting time also because we have seen the Bitcoin ETF approval already and the next is going to be the halving. The Ethereum ETF is also underway and hopefully, it can be approved in May as people are anticipating. There are high chance that the Security and Exchange Commission will give a go-ahead to Ethereum etf. This can be another big news in the market and we need to be prepared to get excited and also to deal with the excitement from investors in the market.
Thank you
Peace @mukund123