2023-10-25clock10 minutes

What will you learn? – Bitcoin, Halving and Trading

In this blog, we'll delve into the concept of Bitcoin halving, a pivotal event that often sees the cryptocurrency's value soaring. Discover why seizing the opportunity to invest in this digital currency before its halving might be a wise decision.

Furthermore, we'll shed light on Bitcoin's trailblazing journey, emphasizing its esteemed position in the cryptocurrency landscape. We'll touch upon the historical strides this crypto has made to achieve its current prominence.

Lastly, for our readers in Georgia, we'll guide you through the streamlined process of acquiring Bitcoin via the online exchange, Cryptal, and highlight the unique advantages this platform brings to your crypto income endeavors.

What is Bitcoin?

At the heart of cryptocurrencies lies the innovative technology known as Blockchain. This decentralized system operates without a singular authority, ensuring that no one entity can unilaterally dictate the nuances of the crypto economy.

Taking a trip down memory lane, Bitcoin emerged as the trailblazer of this decentralized era. Its inception dates back to 2009 when an enigmatic individual or collective, known as Satoshi Nakamoto, introduced the Bitcoin Whitepaper on a digital forum. This seminal document outlined the foundational principles of how Bitcoin was intended to function.

As time progressed, Bitcoin's allure only intensified. A growing number of enthusiasts were drawn to the allure of the crypto realm, bolstering Bitcoin's stature as a genuinely decentralized asset. Today, its market cap surpasses the half-a-billion mark, with a single Bitcoin's value floating around a noteworthy $34,000.

Interesting Facts about Bitcoin:

  1. The First recorded Bitcoin transaction took place in 2010 when Laszlo Hanyecz made a seemingly modest purchase of two pizzas, shelling out a whopping 10,000 Bitcoins. Fast forward to today, and the crypto landscape paints a different picture: that every transaction would now equate to a staggering $260 million.

  2. Between 3 and 4 million bitcoins have vanished into the digital abyss. This significant loss can be attributed to a myriad of reasons, including misplaced wallet passwords, compromised hard drives, and various unforeseen calamities.

  3. Bitcoin's design enforces a scarcity model, with a maximum cap set at 21 million BTC. As we approached 2022, the circulation had nearly reached its zenith, with about 19 million Bitcoins already disseminated into the system.

What is the usage of Bitcoin?

Bitcoin, reigning as the most renowned digital currency globally, boasts multifaceted applications. Foremost, it facilitates transactions that are both anonymous and secure, allowing users to transact with liberty and peace of mind.

In essence, shifting coins from your Bitcoin wallet to another individual mirrors the straightforwardness of a traditional bank transfer.

Moreover, Bitcoin simplifies global transactions. Using conventional currencies often means navigating through bureaucratic hurdles, enduring time-consuming procedures, and shelling out significant fees for commissions. Bitcoin, on the other hand, streamlines this, circumventing these hassles and associated costs.

Bitcoin's primary allure stems from its promising investment prospects. Drawing from Laszlo Hanyecz's legendary pizza purchase, it's evident that the value of this digital currency tends to rise over time. Consequently, there's a realistic chance that a Bitcoin acquired today could appreciate considerably within a half-year or certainly by year's end.

This strategy, embraced by Bitcoin aficionados and crypto traders alike, is coined "HODL." Essentially, it underscores the principle of retaining an asset, like Bitcoin, until its valuation aligns with one's desired financial threshold.

What is Bitcoin Halving and Why it is important?

To truly grasp the significance of "halving" for crypto enthusiasts and traders, one must first comprehend its mechanics and the foundational workings of Bitcoin.

In rudimentary terms, when Bitcoin is transacted from one party to another, several entities and computer nodes in the network spring into action to validate that transaction's legitimacy. These validators are termed "miners." The miner who first verifies the transaction earns a stipulated amount of bitcoins as a reward. Once validated, the transaction gets indelibly etched into a block, which subsequently joins the blockchain.

A pivotal event occurs every 210,000 Bitcoin blocks: halving. This entails a progressive reduction in the rewards miners receive.

This halving mechanism will persist until the total count of bitcoins in circulation caps at 21 million, an event projected for 2140.

Notably, the subsequent Bitcoin halving is slated for April 2024, an event that recurs quadrennially.

Why People Are Buying Bitcoin Before Halving?

Drawing from historical trends and dissecting Bitcoin's price movements, it's evident that the halving event wields a profound influence on the cryptocurrency's value, typically steering it in a positive direction over an extended period.

Case in point: post the 2012 halving, Bitcoin's price soared to an unprecedented high of $1,000 by November 2013. This remarkable surge piqued the curiosity of many, leading to an increased appetite for this digital currency.

Fast forward to the subsequent halving in 2016, and Bitcoin's price narrative followed a similar trajectory. By December 18, 2017, Bitcoin's valuation touched the staggering $20,000 threshold. The price explosion that ensued after the 2016 halving ignited what can best be described as "Bitcoin mania," captivating global audiences and resonating strongly within Georgian shores.

To comprehensively grasp the ripple effects of halving Bitcoin's price dynamics, let's delve into the nitty-gritty of the process:

  • November 2012:
    Mining Reward Before Halving: 50 BTC
    Mining Reward After Halving: 25 BTC
    Price before Halving: $12.35
    Price after 5 Months: $127

  • July 2016:
    Mining Reward Before Halving: 25 BTC
    Mining Reward After Halving: 12.5 BTC
    Price before Halving: $650
    Price after 5 Months: $758

  • 2020 May:
    Mining Reward Before Halving: 12.5 BTC
    Mining Reward After Halving: 6.25 BTC
    Price before Halving: $8600
    Price after 5 Months: $15420

Scheduled for April 2024, the impending Bitcoin halving event looms on the horizon with its current valuation hovering around the $34,000 mark. Delving into historical patterns and statistical data, a prevalent conjecture emerges suggesting a probable upswing in Bitcoin's value post-halving.

Bitcoin Price is Increasing

The crypto landscape has witnessed a remarkable metamorphosis recently, with Bitcoin's value experiencing a meteoric ascent, especially in just the past 24 hours.

Currently pegged at around $34,000, Bitcoin has appreciated a staggering 25% within a mere week. This bullish trend isn't confined to Bitcoin alone. Other prominent and emerging cryptocurrencies are riding this upward wave, too. Ethereum has surged by 13%, Ripple has escalated by 12%, Solana's value has skyrocketed by 40%, and Litecoin has climbed up by 12%.

Analysts and traders are pinpointing a couple of monumental events in the U.S. as catalysts for this sweeping uptrend.

The U.S. Securities and Exchange Commission, one of the world's foremost regulatory bodies, is on the cusp of greenlighting a Bitcoin trading fund. This move implies that soon, investors and traders can acquire Bitcoin through traditional stock exchanges, cementing Bitcoin's foothold on the illustrious Wall Street.

Further fueling the crypto fervor, BlackRock, a global investment juggernaut overseeing assets worth $8.5 trillion, has unveiled plans to integrate Bitcoin payment options.

These concurrent developments have invariably amplified interest levels among traders. A heightened demand ensued, propelling Bitcoin and other cryptocurrencies to their current lofty valuations.

How to Buy Bitcoin?

Acquiring cryptocurrencies can be approached via multiple avenues, but for speed, cost-efficiency, and user-friendliness, online crypto trading platforms stand out.

Cryptal, distinguished as Georgia's pioneering crypto exchange, is a testament to this. It is tailored to cater to both seasoned crypto aficionados and newcomers just dipping their toes into the crypto waters.

Commencing your journey on Cryptal involves a streamlined registration process. Once you're onboarded, you're presented with two primary avenues to procure cryptocurrencies: Convert and Spot Exchange:

  • Convert - This method epitomizes simplicity and swift execution. With merely two clicks, you can promptly secure your desired digital currency, funneling it directly to your crypto wallet. It's as straightforward as specifying the amount of cryptocurrency you intend to acquire (for instance, Bitcoin) and then hitting the 'buy' button.

    This is the go-to option for novice traders or individuals seeking to quickly bolster their crypto holdings. Tailored for effortless use, it ensures users can seamlessly acquire cryptocurrencies and see them reflected in their wallets almost instantaneously. Perfect for those prioritizing simplicity and speed.
  • Spot Exchange - This method is typically favored by seasoned traders or those looking for a more hands-on approach to acquiring cryptocurrency. It allows users to set specific price points at which they wish to buy or sell, offering greater control over their trading decisions. This flexibility enables traders to optimize their entry and exit points, aiming to purchase at a price they deem optimal.

    On Cryptal, you initiate the process by placing an order, specifying the quantity of Bitcoin you intend to purchase and the price you're willing to pay. Once your order is set, it enters the market, and you wait. Your order gets executed when another user, looking to sell, matches your specified price, effectively completing the transaction. This mechanism allows for greater precision in matching your desired price point, though it might require some patience compared to the immediate nature of the Convert method.

Bitcoin and it’s Halving

Bitcoin, often hailed as the digital currency of tomorrow, garners immense faith from its advocates, many of whom are bullish about its long-term investment trajectory. They're banking on its potential appreciation, often holding onto their Bitcoin assets for extended periods.

A significant driver behind this optimism is the 'halving' event, a recurring phenomenon every four years, which historically has propelled Bitcoin's valuation. As this event approaches, the trading community buzzes with anticipation, forecasting significant price hikes, with some speculations even pointing towards a staggering $100,000 milestone.

For those in Georgia keen on entering this promising arena, Cryptal emerges as a trusted gateway. Offering both the straightforward Convert option and the more intricate Spot Exchange it ensures that acquiring Bitcoin is both affordable and uncomplicated. Moreover, with Cryptal, users are guaranteed a secure haven for their Bitcoin wallet, ensuring peace of mind for their crypto investments.