The next halving will likely occur in 2024. What is the halving, how does it affect the price, and what does it mean for miners and the cryptocurrency’s long-term prospects? Here’s everything you need to know.
“The halvening” sounds like a horror movie about an ax murderer. But it’s actually the nickname for one of the most hotly anticipated events in Bitcoin’s history.
In May 2020, the number of bitcoins (BTC) entering circulation every 10 minutes (known as block rewards) dropped by half, to 6.25 from 12.5. It’s a milestone that was easy to see coming because it happens every four years and has happened twice before 2020.
The allure of possible riches is what’s drawing so much attention to the upcoming event, which is more commonly referred to as the halving (some wags like to add the “en” to make it sound ominous). The amount of supply entering the system will suddenly shrink, but the demand will, in theory, stay the same, possibly driving up the cryptocurrency’s price. As such, the event has inspired passionate debate about bitcoin price predictions and how the market will respond.