Bitcoin Shows Slight Growth After Halving Event

Estimated read time 3 min read
At 9:30 p.m. this Friday, the halving, one of the most anticipated cryptocurrency events, began . Bitcoin maintained its price, with a slight increase of 1.22% to reach US$63,955. Ethereum (ETH), for its part, was sold for US$3,062 , which implies an increase of 0.25% in the last 24 hours.
The halving occurs approximately every four years in the Bitcoin network and consists of the halving of the reward that miners receive for mining and validating the transactions that occur in the blockchain, they say from Buenbit.
It is designed to control the supply of Bitcoin and maintain its value over time . By halving the amount of new Bitcoins that are created , it lowers inflation and guarantees the scarcity of this cryptocurrency. This mechanism has similar characteristics to the effect of mining precious metals such as gold, where the amount of gold mined and added to the market decreases over time, which can contribute to the appreciation of the value of gold.

What is the halving for?

The halving has a dual purpose: to ensure the longevity of Bitcoin by limiting its total to 21 million and to reduce the inflation of its supply . This policy of decreasing supply is critical to maintaining the value of Bitcoin over time, potentially driving its price to new all-time highs in the context of growing demand.

With the addition of Bitcoin ETFs, a new avenue for investing in cryptocurrencies has been opened , especially for institutional investors. This has expanded investment possibilities and added to the halving, it is expected to have a significant impact on its price to levels never seen before.

It is worth remembering that the last Bitcoin will be mined near the year 2,140. This time horizon underscores the long-term vision behind Bitcoin: a currency designed not only for the present but for future generations.

The Bitcoin halving is more than a technical event; is a reminder of the innovation and audacity behind the first cryptocurrency. As we move towards the 2024 halving, it is clear that Bitcoin remains a disruptive force in the financial world, with the potential to redefine value and economics in the digital age.

Important concepts to understand the halving

It is important to talk about a protagonist of the crypto ecosystem, “The Miner”. A miner in the crypto world is a person or entity that uses his or her computing power to carry out the mining process. This process involves the validation of transactions and their incorporation into the blockchain, which is the public and distributed registry where all the operations of a cryptocurrency are stored.

To explain the concept of “computational power” it is like a computer that solves mathematical calculations. The stronger it is, the more calculations it can solve in less time, leading to greater profit. When a miner solves an algorithm, it proposes a new block of transactions to be added to the blockchain. As a reward for his work, the miner receives a set amount of the cryptocurrency, in addition to the transaction fees associated with the transactions included in the new block.

The mining process is also what introduces new units of the cryptocurrency into circulation, in a process that resembles mining precious metals in the real world, hence the term “mining.” This reward mechanism incentivizes miners to contribute their computing power to the network, helping to keep it secure and operational.

Graco P

Graco P is an esteemed cryptocurrency journalist with over nine years of experience. Specializing in blockchain technology, his incisive analyses help demystify complex crypto trends. Graco's work appears in top financial publications, and he holds an Economics degree from the University of Chicago.

You May Also Like

More From Author

+ There are no comments

Add yours