Bitcoin is a name that has taken a special place in the minds of the investors. The main question among investors and people involved in Bitcoin is will Bitcoin skyrocket after the 2024 halving. Let’s get into the details of Bitcoin to understand whether Bitcoin will skyrocket or not?
Bitcoin is not physical in nature. It’s the balances that are kept on a public ledger which can be seen by all. Bitcoin is nothing but digital money, which is stored in a digital wallet in the smartphone or the computer. But we need to know that it’s not acceptable by all.
Bitcoin is not real money. But you need real money to buy it. You are required to have strong and powerful computers to get Bitcoins. This system is known as mining in the Bitcoin world. Bitcoin, in today’s world, is considered digital gold.
What Is Bitcoin Halving?
Halving in terms of Bitcoin means that the number of coins the miners receive is cut in half. Miners are sort of accountants who keep the record of every transaction. This Halving also cuts down the inflation rate in addition to the rate of the new Bitcoins.
The halving of Bitcoin happens every four year. The halving has already happened three times. Everyone is looking forward now to the halving of 2024 and will Bitcoin skyrocket after the 2024 halving. If you want to buy low and sell high bitcoin, then you need to plan it around Bitcoin Halving which drives price heavily.
Deflation means a fall in the prices in any economy and the increase in the purchasing power. The same is at work in Bitcoin. The nature of bitcoin is deflationary because it has a fixed supply and the reward for mining decreases every four year. Thus, leaving the miners and investors wondering whether Bitcoin will skyrocket or not. The deflation in Bitcoin and the network effect brings its value.
Block Reward Halving
To understand Block reward, we need to understand what is a block? A block is 1MB in size and is used to store the information of the transaction.
In terms of Bitcoin a block reward simply means the number of Bitcoins one can get if one mine a block of the currency. Even the reward that one gets is halved every 210,000 blocks, or approximately every four years. The amount will become zero at 2140.
Before 2140, comes the year 2024. This is the most speculated year. The investors are interested in whether the Bitcoin will skyrocket after the 2024 halving.
Mining Difficulty Adjustment
Mining difficulty is a measuring unit that Bitcoin uses during mining. when there are too many miners in the network at the same time, competing against each other for block rewards. This process puts a lot of pressure on the peer-to-peer network. This is called the mining difficulty in the world of Bitcoins.
Mining difficulty adjustment happens automatically after 2,016 blocks have been mined. The difficulty adjustment depends on the mining network. Depending on the Hash power of the network the difficulty adjustment increases or decreases.
Although this works perfectly on the market demand and supply metrics, there have been calls by researchers to better the Bitcoin mining difficulty adjustment algorithm.
To ensure security mining hashrate comes into picture. Bitcoin Hash rate is nothing but the speed at which the mining device works. Speed of the device is very important while mining. The speed not only ensures good mining but it is also essential for security.
How Halving Affects Bitcoin Price?
The geniuses/genius at Bitcoin came up with the idea of halving. We don’t know if Satoshi Nakamoto is one person or a group of people or an organization at this time. Halving cuts down the rewards of the miners in half as well as the inflation rate of the new Bitcoins that enter. The idea behind this halving is where the economics of supply and demand comes into picture.
The higher the demand but not enough supply to match it will increase the price or value of the commodity in question. Halving makes the prices of Bitcoin go up or at least based on the past experience leaves the investors and miners wondering whether the crypto will skyrocket again. Halving definitely contributes to the price of the bitcoin increase.
First Halving Bitcoin – 2012
The first halving in bitcoin happened on November28, 2012. In this halving the miner’s rewards were cut in half i.e., from 50 Bitcoins to 25. The more interesting thing happened after the halving. The 2012 halving saw an increase in Bitcoin from $12 to approx. $1150 in the span of one year. Now this increase was quite substantial.
Second Bitcoin Halving – 2016
In 2016 the miner rewards were further cut down from 25 per block to 12.5. The second Bitcoin halving happened on July 9, 2016. This time again in the time of one year, the prices of Bitcoin skyrocketed. The cryptocurrency reached an all-time high of $19,000.
Third Bitcoin Halving – 2020
This year the halving happened on 11 May 2020. The rewards further went down from 12.5 to 6.25. as we know by now that Bitcoin saw immense growth after the 2016 halving. So, now the question in the mind is will the crypto skyrocket again this time.
The year saw a price fluctuation of great ratio. The year began with Bitcoin at $7000. The prices crashed around march to $4000 before going up to $10,000. Bitcoin went up to $14,000 in November. At the time of writing this article, Bitcoin has broken its previous all time highs of $19,000 and is sitting comfortably at around $24,000.
Fourth Bitcoin Halving In 2024- What To Expect?
The next Bitcoin halving is supposed to happen in 2024. To control the supply Bitcoin came up with this idea of halving. It may have the same effect as before. We can at this point only speculate. But the pattern has always been that the prices have increased considerably. It’s a guessing game at this time, will Bitcoin skyrocket after the 2024 halving. Learn the Bitcoin price prediction in detail around the next major Bitcoin halving event.
Will Bitcoin Skyrocket Again?
As for 2020, the expectation is that Bitcoin is going to increase. By the end of 2020 it should get to the mark of $20,000. According to the experts in the field the cryptocurrency is going to skyrocket around 60,000 by the end of 2021.
Will Bitcoin skyrocket after the 2024 halving, is the question? The year and the events that will follow are going to be the most talked about. There are still gloom and doom articles floating around with the question, will bitcoin crash? It’s a strong no from my side and you can read my opinion in the linked article.
Frequently Asked Questions
Will Bitcoin Rise Again in 2024?
Well, at this time it’s all speculation. Maybe the crypto will skyrocket again. Cryptocurrency is a global market now. So, a lot of factors will be at play now. In addition to this the Bitcoin works on the demand and supply format. The scarcity of the commodity will increase the demand. This increase in demand definitely increases the price of the commodity in question.
What will Bitcoin Be Worth in 10 Years?
According to experts in the field, it’s predicted that in 10 years or under 10 years Bitcoin will be worth approximately from $1 Million on the lower end to $10 Million on the higher end.
Why Bitcoin Is Skyrocketing?
The inflation of the U.S. dollar is 2% each year on an average. This inflation rate is one of the reasons for the rise in Bitcoin. Another reason for its increased price is recognition from other merchants as means of payment. PayPal recently announced that it will accept Bitcoin as means of payment. This news increased the price of the Bitcoin. Initially Bitcoin was not accepted as a reliable asset. Recently Microstrategy, one of the big names in its field, exchanged $425 million worth cash in Bitcoin. After this event a number of companies follow suit. One of the important reasons is Bitcoin’s structure is based on demand and supply.
Takeaways – Will Bitcoin Skyrocket?
Will the cryptocurrency skyrocket, is now the question? Will Crypto redefine the future of money?
- With all that we studied till now, it can be said that it will continue to grow.
- In the events where something really goes wrong, which is highly unlikely but not impossible, bitcoin may not take off.
- Nothing can be said for sure with the new asset class of digital money. Bitcoin is based on a very sound economic theory. Since it’s a sound money and better money than fiat currency, one will hope that it works.
- The chart patterns, fundamental analysis and stock to flow has been up till now and has been increasing at a very good ratio, so bitcoin may skyrocket in the future.
So, for all the miners and investors, let’s keep our fingers crossed. Learn how to earn more bitcoin through lending. After all, there is nothing wrong in chasing wealth! Learn how to start investing in your 20s and you will have a comfortable retirement. After a point, diversify and learn to invest in many asset classes.
I am a data analyst by profession who loves to crunch numbers at daytime and come home wondering how my passive income numbers for the day look like. I believe in being rich rather than looking rich. Follow me for Cryptocurrency, FIRE, Personal Finance, Credit Cards and Digital Nomad updates