The fourth BTC halving was scheduled to take place in 2024 but according to many resources, the chances are that it can take place sooner i.e. maybe at the end of 2023. Before getting deep into it let’s just dive into what halving actually is.
All you need to know about Bitcoin Halving:
Bitcoin halving is an occasion where the compensation for mining new BTC blocks is halved. Because of the halving, miners get half less BTC for authenticating the transactions. This event of halving happens after every four years or technically speaking, after every 210,000 blocks. In simple words, through the halving process, Bitcoin makes a fake inflation that decreases by half by every four years till it is issued and being used.
How does halving works:
Bitcoin halving works on account of its network’s fundamental blockchain technology software which directs the rate at which new Bitcoins are made. The software requires PCs in the blockchain network to contend to verify exchanges known as Bitcoin mining. Bitcoin miners are rewarded by the mining with a few new Bitcoins when they can demonstrate that the exchanges that have been chosen by them are valid. These transactions are confirmed in bunches known as blocks, and the blockchain network is coded to halve the reward received by miners after every 210,000 blocks.
Why is it important?
Well, a lot of you might be thinking that why the halving takes places after every 4 years or so and what the purpose is. The reason behind it is that through Bitcoin halving the quantity of new Bitcoins made each block reduces which decreases the quantity of new Bitcoins accessible and raises the price of getting one.
And, as you all may already know that a constant demand and decreased supply can simply result in a higher cost. Because of the fact that it restricts the supply of new Bitcoins while keeping a steady demand, halving results in Bitcoin’s most prominent surges.
The Next BTC Halving…
The fourth BTC halving, which was at first planned to occur in 2024 is now suppose to take place sooner than the scheduled date. As per the news roaming around, BTC’s next halving will occur in one year and 157 days, and that implies we can now expect it in December 2023. “That Martini Guy” who is a well known crypto influencer, likewise talked about this new development in his latest tweet. The fact that it is now going to take place sooner is a good sign for BTC, as the information suggests that halving is occurred due to significant price surges. For instance, during the 2020’s BTC halving, Bitcoin was at the price of $8,500 and after halving in only a couple of months it went up to more than $27,000. However the whole picture appears to lean in the favor of buyers in the market.