Tag: Bitcoin BTC Halving

Bitcoin’s halving was successful. What to do? Historical data predicts rises in the months following the event, so why set up a recurring buy now?

What should we do now that Bitcoin’s halving has happened? After the rewards for miners have halved, many wonder what will happen to cryptocurrency’s price.

Historically, this event has established a market cycle that seems to repeat itself at similar intervals. Where do we stand now? Could the recent cryptocurrency retracement be an opportunity to buy Bitcoin at a lower price?

Halving Bitcoin, what to do: analysis of the BTC price in 2024

For the price of Bitcoin, 2024 has been an interesting year. At the beginning of the year, BTC was in the $40,000 price range, while today, it orbits around $56,000 after the crypto recorded a new all-time high at $73,000 in March. Just comparing historical data might be the right way to get an idea of its future price targets.

In the days following the 2020 halving, which occurred on 11 May of that year, Bitcoin’s price was in the $8,000 zone. In January 2021, it broke to its current all-time high at $20,000, while less than 12 months after the event, it recorded a new one at $64,000.

The main difference from that market cycle concerns the new all-time high. Bitcoin recorded a new all-time high about a month before the important event.

If you have been with us in the crypto market for a few years, you may remember that BTC rose in a similar move during the bear market of 2018-2019. At that time, the rise was 100%, but then it quickly subsided. Due to the market shake-up over the last few weeks, we are again below the ATH, but given Bitcoin’s performance during 2024, we might reach it again soon!

How long until the next upturn? 

Looking at Bitcoin’s past bear market performance, we can see that after the bottom, the crypto took some time to recover. Indeed, it has been “water under the bridge” since November 2022, the month in which Bitcoin hit the low point at $15,000. Should it move as it has in the past, that area of the chart will never be reached again.

Still referring to past movements, buying Bitcoin regularly over the next few months could bring great satisfaction. Indeed, one could put the crypto aside at bargain prices, waiting for the explosion that usually occurs a few months after halving.

Of course, one cannot look at the past to predict the future, but knowing historical data is indispensable for making decisions.

What to do? Focus on recurring purchase

What could stimulate the price rise? In the past, Bitcoin’s halving has jump-started crypto. In fact, the halving of rewards has always been the starting point of a new bullish cycle. 

Contrary to what one might think, these price movements and the consequent reaching of new all-time highs never occur suddenly. Above all, the initial phases are usually very slow and gradual and become more explosive after new highs are reached. 

It must also be said that the experts’ forecasts for BTC at the end of 2024 are decidedly optimistic: according to Standard Chartered analyst Geoff Kendrick, the price of Bitcoin, after halving, will easily touch $100,000. For TechDev, the outlook is at $160,000.

Setting up a recurring purchase in pre-halving Bitcoin only takes a few minutes. Go to the Piggy Bank section of the Young Platform app, choose the amount and frequency you want and start saving your cryptos by taking advantage of the bear market!

*The information in this article is for educational purposes and is not an incentive to invest. It is based on historical and objective Bitcoin market data, and the charts do not represent future predictions. The performance of any cryptocurrency portfolio is always subject to market conditions and volatility.

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In 2140, miners will finish issuing Bitcoin. Will their work no longer be needed? What will happen after that? 

Bitcoin, like all precious things, is limited and scarce and therefore will not be issued forever. The distribution of coins will cease at 21 million, more or less around the year 2140. This event, although very far away, will affect future miners who will no longer receive new BTCs as a reward. What happens when all 21 million Bitcoins are mined? Will the miners stop securing its blockchain?

Why aren’t Bitcoins infinite?

The maximum amount of Bitcoins that can be issued is limited to 21 million. This number is also called ‘max supply‘. This limit was introduced by Satoshi Nakamoto since the creation of the cryptocurrency to curb inflation and make crypto scarce and therefore more valuable. If Bitcoin’s availability were unlimited and BTCs were mined indefinitely at some point each of these cryptos would no longer be worth anything. Currently 19 million Bitcoins have been issued and therefore there are only 2 million left to reach total supply. 

Miners’ rewards reduced by halving

Another Bitcoin mechanism, related to mining, is halving. This regulates the gradual decrease in rewards given to miners who validate blocks, which are halved about every four years. This also serves to reduce the crypto in circulation, to maintain scarcity. After the successful halving in April 2024, miners get 3.125 BTC for each validation block. The process of validating a block takes, on average, 10 minutes.

What happens to the miners when all Bitcoins are issued?

The security of Bitcoin’s blockchain is guaranteed by the miners, so it is legitimate to wonder whether the moment no more BTCs are issued, the network will stop working, because no one will have any incentive to check the validity of transactions. 

Fortunately, Satoshi Nakamoto has also thought of this. In fact, the miners not only receive a portion of the newly mined BTC as a reward, but also the transaction fees. When all 21 million Bitcoins have been issued the fees will become the only source of income for the miners.

The end of Bitcoin minting will have an unpredictable impact. Certainly miners may be affected, and for some of them, mining Bitcoin may cease to be a profitable activity. But this depends very much on the evolution of Bitcoin as a cryptocurrency. For example, if in about 120 years BTC becomes a fully-fledged store of value, the transaction fees (which will be much more expensive than now), will probably be sufficient to reward the miners. Alternatively, they could migrate to other blockchains, as happened to Ethereum when its network switched from Proof-of-Work to Proof-of-Stake consensus mechanism.

Over the past year, thanks to a new technology called inscription, Bitcoin’s blockchain is evolving. The BTC network is no longer a ‘pure’ network that only handles cryptocurrency transfers but can also host NFTs, decentralised applications (Dapp), DeFi protocols, and even Layer 2 blockchains. In short, the activity on Bitcoin’s network is increasing, which also contributes to raising the fees that users have to pay, on average, to make a transaction. As the volume of commissions increases, the miners will earn more money.

Lately, thanks to a new technology called inscription, Bitcoin’s blockchain is evolving. The BTC network is no longer a ‘pure’ network that only handles cryptocurrency transfers, but can also host NFTs and possibly soon decentralised applications (Dapp) and DeFi protocols. Due to inscription, activity on the Bitcoin network is increasing, which also helps to raise the fees that users have to pay on average to make a transaction. As the volume of fees increases, the miners will earn more money.

Unfortunately, there is no certain answer to the question: what happens when all 21 million Bitcoins are mined. In any case, since it is about 120 years away, the miners still have some time to prepare.

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