What is Bitcoin Halving?
How does Halving affect Bitcoin Price?
How does Bitcoin Price change after Every Halving event?
Where and How Can I Buy Bitcoin?
Bitcoin logos on the bottom side of the visual with English text above about Bitcoin Halving Event 1000x300
2024-03-08clock5 minutes

What is Bitcoin Halving?

Cryptocurrencies, particularly Bitcoin, boast decentralization as a primary advantage. This implies that the industry operates without a governing authority, giving you complete ownership of the digital asset, free from oversight by supervisors or central bodies.

When you engage in buying or selling Bitcoin, you're transferring a digital asset you possess to another individual. Due to the absence of a central supervisory entity, the legitimacy of your cryptocurrency must undergo verification, a task taken on by miners.

Miners, whether individuals or companies connected to the internet, utilize powerful computer equipment to tackle intricate mathematical puzzles. In doing so, they authenticate your transactions and assets, a process commonly referred to as mining.

Miners play a dual role in the ecosystem. They are instrumental in ensuring the decentralized and efficient functioning of the system, while also being rewarded with Bitcoin for their efforts. Multiple miners may participate in confirming a single transaction, and the greater their contribution to solving complex tasks, the larger their share of the Bitcoin reward.

Every four years, the Bitcoin network experiences a halving process. This entails a reduction in the amount of Bitcoin awarded as compensation for miners. For instance, after the 2012 halving, the reward decreased from 50 bitcoins to 25 bitcoins, with subsequent halvings halving the reward again every four years.

How does Halving affect Bitcoin Price?

The anticipation surrounding the upcoming 4th halving in the Bitcoin network is buoyed by the positive impact observed during the previous three halvings. This phenomenon prompts an intriguing question: Why does the price of Bitcoin typically increase following a halving event?

  • Scarcity - Following a halving, the rate of new Bitcoin generation undergoes a significant decline. Consequently, the influx of new cryptocurrencies into the market diminishes. Should demand for Bitcoin remain constant or surge, its price ascends accordingly. This scarcity factor drives up the value of Bitcoin as fewer units enter circulation.

  • Expectations - Historical data indicating a post-halving surge in Bitcoin prices acts as a signal for many investors to acquire and retain Bitcoin ahead of the halving. The expectation of further price appreciation amplifies demand for the asset, contributing to its increased value.

  • Miner Effect - With each halving, miners receive progressively fewer bitcoins as compensation. This can incentivize miners to withhold their earned bitcoins until prices escalate significantly. Consequently, this reduction in available assets on the market can propel Bitcoin's value upwards.

  • Popularity - The halving event garners considerable attention from the media and various publications, elevating its prominence. This heightened visibility attracts more investors and individuals eager to purchase cryptocurrencies, thereby bolstering Bitcoin's price.

  • Investor Sentiment - Large-scale investors and individuals viewing Bitcoin as a long-term investment anticipates the halving-induced reduction in supply to drive future price gains. Holding onto Bitcoin removes it from circulation, exacerbating its scarcity and potentially amplifying its value over time. This perception as a store of value further bolsters investor confidence and contributes to the upward trajectory of Bitcoin's price.

How does the Bitcoin Price change after Every Halving event?

  1. November 2012
    Bitcoin Price before Halving - $12.35
    After 5 Months - $127

  2. July 2016
    Bitcoin Price before Halving - $650
    After 5 Months - $758

  3. May 2020
    Bitcoin Price before Halving - $8600
    After 5 Months - $15420

As the April 2024 halving approaches, the price of Bitcoin hovers around $67,000, indicating stability in the market two months prior to the event.

Where and How Can I Buy Bitcoin?

If you're new to buying Bitcoin online and seek a user-friendly platform with minimal fees, Cryptal is your solution.

Step 1: Register on Cryptal

Signing up for Cryptal is straightforward, even if you're unfamiliar with cryptocurrency purchasing. Complete a simple registration and verification process to gain access to a secure environment for buying and storing crypto assets.

Step 2: Purchase Bitcoin

Convert: Cryptal simplifies the process of buying Bitcoin with just a few clicks, regardless of your experience level. Upon selecting "buy crypto," specify the desired amount of Bitcoin. The platform instantly displays the price in your local currency. With a single click to buy, your purchased Bitcoin swiftly appears in your wallet within seconds.

Spot Trade: Alternatively, you can engage in spot trading, facilitating direct purchases from other users looking to sell Bitcoin. Cryptal serves as a secure intermediary, connecting buyers and sellers in a comfortable environment.

To initiate a spot trade, place a buy request specifying the desired amount of Bitcoin and the price you're willing to pay. If a seller matches your criteria, the transaction is executed seamlessly, fulfilling your purchase request.

While spot trading may cater more to experienced users, it offers the opportunity to acquire Bitcoin at competitive prices. Cryptal ensures a safe and efficient platform for these transactions, enhancing the overall buying experience.