Bitcoin Halving To Happen In 2024

At a time when Bitcoin price has shown a significant recovery this year till date after the bloodbath of 2022, crypto billionaire Changpeng Zhao, who is the CEO world’s largest crypto exchange Binance, has made a bold prediction.

What Has Binance CEO Predicted?

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The Binance CEO has expressed his belief that the next Bitcoin halving process, scheduled for 2024, could usher in a period of renewed price growth, and even push Bitcoin price to an all-time high.

What Is Bitcoin Halving?

Bitcoin halving is when the reward for Bitcoin mining is cut in half. The halving policy was written into Bitcoin’s mining algorithm to counteract inflation by maintaining scarcity. In theory, the reduction in the pace of Bitcoin issuance means that the price will increase if demand remains the same. Halving takes place every four years. 

Also Read: Goldman Sachs Lends Its First Bitcoin-Backed Loan

How Is Bitcoin Halving Done?

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Firstly, a decentralized network of validators verifies all Bitcoin transactions in a process called mining. They are paid 6.25 BTC when they are the first to use complex math to add a group of transactions to the Bitcoin blockchain as part of its proof-of-work mechanism. Those blocks of transactions are added roughly every 10 minutes, and the Bitcoin code dictates that the reward for miners is reduced by half after every 210,000 blocks are created. That happens roughly every four years in periods that are often accompanied by heightened Bitcoin price volatility.

Also Read: US Man Pays 10,000 Bitcoins For Pizza

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How Does Bitcoin Halving Impact The Price?

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Bitcoin Halvings, which occur approximately every four years, are pivotal events in the cryptocurrency’s history. During these events, the rate at which new Bitcoin is created through mining is reduced, resulting in a reduction in the asset’s issuance.

As alluded to by Zhao, this supply shock has historically had a significant impact on the price of Bitcoin, resulting in all-time highs in 2013, 2017, and 2021. For the unversed, the first Bitcoin halving occurred in November 2012. The next halving was in July 2016, and the most recent halving was in May 2020.

So, in all of the last four bitcoin halvings, the crypto token’s price did reach an all-time high in the following year. As per this trend, bitcoin prices will hit a new all-time high by 2025.

Currently, bitcoin price is $27,528.80.

Billionaire Zhao’s remarks on the potential for “all-time highs” following the 2024 Bitcoin halving are grounded in historical trends. Over the past three halvings, Bitcoin has experienced remarkable price surges in the years that followed, as per NASDAQ.

Binance CEO Zhao offers the following explanation for the data:

Pre-Halving Excitement: In the lead-up to a Bitcoin halving, the cryptocurrency community typically witnesses a surge in excitement, discussions, and media coverage. This phenomenon reflects the anticipation and high expectations surrounding the event.

Post-Halving Reality: Contrary to some expectations, the price of Bitcoin does not immediately double overnight following a halving. Instead, the immediate aftermath is often characterized by a period of consolidation and adjustments.

Subsequent Price Surges: It is in the year or years following a Bitcoin halving that the cryptocurrency’s price has historically surged to new all-time highs. This phenomenon is driven by a combination of factors, including increased awareness, growing adoption, and the reduced rate of Bitcoin production.

As such, the remarks find Zhao echoing the belief of many Bitcoiners that the asset is becoming predictable and cyclical with its price movements, as a result of the fact that it is sound money whose monetary policy isn’t controlled by governments. These events serve as a reminder of the digital currency’s deflationary characteristics, setting it apart from traditional fiat currencies.

Now it remains to be seen whether 2024’s bitcoin halving indeed ends up shooting up bitcoin’s price or not. We’ll have to wait and watch!

Also Read: World’s First Ever Bitcoin Tower Set To Be Built In Dubai

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