{"id":2214712,"date":"2024-04-07T03:22:02","date_gmt":"2024-04-07T07:22:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bitcoin-halving-event-what-is-it-and-how-will-it-affect-the-price\/"},"modified":"2024-04-07T03:29:33","modified_gmt":"2024-04-07T07:29:33","slug":"bitcoin-halving-event-what-is-it-and-how-will-it-affect-the-price","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bitcoin-halving-event-what-is-it-and-how-will-it-affect-the-price\/","title":{"rendered":"Bitcoin &#8216;halving&#8217; explained: Impact on price?"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">12<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbitcoin-halving-event-what-is-it-and-how-will-it-affect-the-price%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2214712&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trump-says-i-know-who-its-going-to-be-when-asked-about-vp-gives-a-couple-of-hints\/\" title=\"Trump hints at knowing who his vice presidential pick will be when asked, but does not reveal the name\">world\u2062 eagerly awaits<\/a> the Summer Olympics, \u200bU.S. presidential election, and Bitcoin&#8217;s upcoming\u200d halving event, projected on\u2063 April 20th. This halving slashes miner rewards, aiming to boost scarcity.\u200c With Bitcoin mining crucial for transaction validation, the process ensures network\u2062 security without \u200ca central authority. As\u2064 Bitcoin supply lessens after halving, historical \u200btrends indicate significant price surges.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>Every four years, the world observes the Summer <a href=\"http:\/\/washingtonexaminer.com\/tag\/olympics\" target=\"_blank\" rel=\"noopener\" title>Olympics<\/a>, the U.S. presidential <a href=\"http:\/\/washingtonexaminer.com\/tag\/election\" target=\"_blank\" rel=\"noopener\" title>election<\/a>, and the much-anticipated <a href=\"http:\/\/washingtonexaminer.com\/tag\/bitcoin\" target=\"_blank\" rel=\"noopener\" title>bitcoin<\/a> \u201chalving\u201d event.<\/p>\n<p>The next <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/venture-capitalist-tim-draper-still-ultra-bullish-on-bitcoin-despite-ftx-implosion\/\" title=\"Venture Capitalist Tim Draper Still Ultra-Bullish on Bitcoin Despite FTX Implosion\">bitcoin halving<\/a>, or \u201chalvening,\u201d is <a href=\"https:\/\/www.bitpanda.com\/en\/bitcoin-halving-countdown#:~:text=The%20initial%20Bitcoin%20block%20reward,reward%20will%20be%203.125%20BTC.\" target=\"_blank\" rel=\"noopener\" title>expected<\/a> to occur on April 20 at 11 a.m. Eastern time, and <a href=\"https:\/\/www.cnn.com\/2024\/02\/13\/business\/bitcoin-price-surge-halving\/index.html\" target=\"_blank\" rel=\"noopener\" title>experts<\/a> say this could have major implications for the cryptocurrency market.<\/p>\n<h2>What is the \u2018halving\u2019 event?<\/h2>\n<p>The bitcoin \u201chalving\u201d event refers to a point when the reward allotted to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/as-prices-surge-bitcoin-now-reportedly-consumes-more-electricity-than-argentina-netherlands-and-uae\/\" title=\"As Prices Surge, Bitcoin Now Reportedly Consumes More Electricity Than Argentina, Netherlands, And UAE\">bitcoin miners<\/a> is cut in half. Occurring roughly once every four years, the halving is designed to facilitate scarcity in the cryptocurrency.<\/p>\n<p>Approximately every 10 minutes, 6.25 BTC, currently worth over $400,000, is awarded to the miner who validates the most recent \u201cblock\u201d of transactions. The data from each block are strung together and distributed to every computer running a node. This forms what is known as the \u201cblockchain.\u201d<\/p>\n<p>The initial \u201cblock reward\u201d was 50 BTC, currently about $3.5 million, and soon it will be 3.125 BTC, currently over $200,000. The amount of bitcoin mined will continue to decrease over time until every bitcoin has been mined, which is estimated to happen around the year 2140. This makes bitcoin a <a href=\"https:\/\/corporatefinanceinstitute.com\/resources\/cryptocurrency\/cryptocurrency-inflation-deflation\/\" target=\"_blank\" rel=\"noopener\" title>deflationary<\/a> cryptocurrency.<\/p>\n<h2>Why does bitcoin need miners?<\/h2>\n<p>Bitcoin \u201cmining\u201d is a euphemism for the process of validating blocks of transactions. In order to properly validate the block, a miner must use a complex algorithm to \u201ccrack the code\u201d and find a unique number called the \u201cnonce.\u201d The difficulty of this task progressively adjusts as more miners join the network, such that it will always take roughly 10 minutes to mine each block.<\/p>\n<p>Mining through this process called \u201cproof of work\u201d is central to the security of the bitcoin network because it ensures there can be no double spending, counterfeits, or fraudulent transactions approved on the network without the need for a \u201c<a href=\"https:\/\/www.fon.hum.uva.nl\/rob\/Courses\/InformationInSpeech\/CDROM\/Literature\/LOTwinterschool2006\/szabo.best.vwh.net\/ttps.html\" target=\"_blank\" rel=\"noopener\" title>trusted third party<\/a>,\u201d such as a bank or the government. Because bitcoin is able to operate without a centralized third party, it is theoretically resistant to outside censorship.<\/p>\n<p>Many other cryptocurrencies use a similar mining process, including litecoin, ethereum classic, and monero. These \u201caltcoins\u201d have their own monetary policies aimed at facilitating scarcity. <a href=\"https:\/\/ethereumclassic.org\/blog\/2024-03-05-the-ethereum-classic-fifthening-is-in-june-2024\" target=\"_blank\" rel=\"noopener\" title>Ethereum classic<\/a>, for example, has a capped maximum supply like bitcoin does, but it has a \u201cfifthening\u201d event every two years instead of a halving event. The fifthening reduces the reward by 20% instead of 50%.<\/p>\n<h2>What are the market implications?<\/h2>\n<p>As the increase in bitcoin supply decreases through the halving event, the market price has risen <a href=\"https:\/\/www.nasdaq.com\/articles\/bitcoin-halving:-expert-analysis-and-price-predictions?time=1712176200\" target=\"_blank\" rel=\"noopener\" title>substantially<\/a> following these events in 2012 and 2016. The 2020 halving did not see an immediate rise in price due to COVID-19, but it did shoot up from just under $10,000 to over $55,000 in the year <a href=\"https:\/\/twitter.com\/simplykashif\/status\/1775736364740358563\" target=\"_blank\" rel=\"noopener\" title>following<\/a> the event and over $70,000 before the next halving.<\/p>\n<p>Joe Burnett, a financial services expert for Unchained, posted his <a href=\"https:\/\/twitter.com\/IIICapital\/status\/1773522249183543547\" target=\"_blank\" rel=\"noopener\" title>analysis<\/a> on X, explaining there is \u201cnot an immediate effect because a cut in the flow of new coins requires time,\u201d but he described the halving event as \u201cvery bullish\u201d because of the \u201cnatural wave of adoption\u201d it attracts.<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/a><\/strong><\/p>\n<figure>\n<div>\n<blockquote data-width=\"550\" data-dnt=\"true\">\n<div lang=\"en\" dir=\"ltr\">\n<p>Do miners sell <a href=\"https:\/\/twitter.com\/hashtag\/bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#bitcoin<\/a> to cover their expenses? Yes.<\/p>\n<p>Does the halving cut mining revenue in half? Yes.<\/p>\n<p>Do the weakest miners and ASICs turn off? Yes.<\/p>\n<p>Does the marginal seller affect the price of bitcoin? Yes.<\/p>\n<p>Does the halving then affect the price of bitcoin? Yes.<\/p>\n<p>Is there\u2026<\/p>\n<\/div>\n<p>\u2014 Joe Burnett (\ud83d\udd11)\u00b3 (@IIICapital) <a href=\"https:\/\/twitter.com\/IIICapital\/status\/1773522249183543547?ref_src=twsrc%5Etfw\">March 29, 2024<\/a><\/p><\/blockquote><\/div>\n<\/figure>\n<p>\u201cConsidering [the] halving and price trends from a very rigorous quantitative point of view, there is no evidence supporting a positive correlation between the halving event and BTC price,\u201d Hao Yang, head of options at Bybit, told<em> <a href=\"https:\/\/cointelegraph.com\/news\/bitcoins-2028-halving-btc-price-target-435k\" target=\"_blank\" rel=\"noopener\" title>Cointelegraph<\/a><\/em>. \u201cBut history can be interpreted in many different ways.\u201d<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Summer Olympics, U.S. presidential election, and Bitcoin&#8217;s &#8220;halving&#8221; event draw global attention every four years. Scheduled for April 20th at 11 a.m. ET, the upcoming halving could significantly impact the cryptocurrency market. What exactly is this &#8216;halving&#8217; event?<\/p>\n","protected":false},"author":2670,"featured_media":2214713,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/04\/AP24065572956518-1024x682.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2214712","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/04\/AP24065572956518-1024x682.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2214712","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2670"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2214712"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2214712\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2214713"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2214712"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2214712"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2214712"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}