2x your Money with Bitcoin Halving in 2024

Introduction

Bitcoin halving is a significant event in the world of cryptocurrencies that reduces the rate at which new bitcoins are generated. It is hard-coded into the Bitcoin protocol and plays a crucial role in ensuring a predictable and diminishing supply of bitcoins over time. This article explores the concept of Bitcoin halving and its potential impact on the price of the cryptocurrency.

Bitcoin’s Increasing scarcity is stoned in its code

Bitcoin’s Increasing Scarcity: Bitcoin’s economic model revolves around halving events that occur approximately every four years. Initially, each block rewarded miners with 50 new bitcoins. However, during each halving, this reward is cut in half. This pattern continues until the year 2140, when the issuance of new bitcoins will cease entirely. This process ensures a steady and controlled issuance of bitcoins, leading to an increasing scarcity over time.

Check this out, The original bitcoin code repo and below code lines https://github.com/bitcoin/bitcoin/blob/master/src/validation.cpp#L1550

CAmount GetBlockSubsidy(int nHeight, const Consensus::Params& consensusParams)
{
    int halvings = nHeight / consensusParams.nSubsidyHalvingInterval;
    // Force block reward to zero when right shift is undefined.
    if (halvings >= 64)
        return 0;

    CAmount nSubsidy = 50 * COIN;
    // Subsidy is cut in half every 210,000 blocks which will occur approximately every 4 years.
    nSubsidy >>= halvings;
    return nSubsidy;
}

Supply Vs Demand

Currently, around 900 bitcoins are created daily, resulting in a substantial amount of new bitcoins entering the market. However, with a fixed supply and an assumption of constant or growing demand, a supply shortage is expected to occur. After the next halving event, scheduled for April 2024, only approximately 3,500 crore rupees worth of bitcoins will be created each month, while the demand may remain at around 7,000 crore rupees. This predictable supply shortage creates an imbalance that can drive the price of Bitcoin upwards.

Bitcoin’s Price Performance

Examining past performance, Bitcoin has experienced three halvings in its 14-year history. Following each halving, the cryptocurrency has witnessed significant bull markets in the subsequent 12 to 18 months. While past performance is not indicative of future results, this pattern based on the principles of supply and demand cannot be ignored. It is important to note that Bitcoin’s price is influenced by various factors beyond halving events, and market conditions can be highly volatile.

Conclusion

Understanding Bitcoin halving and its impact on price is essential for cryptocurrency investors. The scheduled reduction in the rate of new bitcoin issuance creates a predictable supply shortage that can lead to upward price pressure. However, it is important to approach investment decisions with caution and conduct thorough research. Bitcoin’s market dynamics are influenced by a multitude of factors, and past performance alone cannot guarantee future results. Whether you choose to capitalize on this information is a decision that should align with your risk tolerance and investment strategy.