Currently, according to Buy Bitcoin Worldwide, 91% percent of the entire bitcoin supply has already been mined and is in circulation.
This means that of the maximum of 21 million BTC, there are already more than 19 million bitcoins issued, but this number changes approximately every 10 minutes when new blocks are extracted.
Even so, it is estimated that the last BTC will be mined in the year 2140 precisely due to this phenomenon called halving. Why?
This process is carried out approximately every 4 years and its objective is to increase the difficulty of finding a block, thus generating a lower reward, which decreases the issuance of new bitcoins, thereby reducing the offer, this accompanied by a greater demand usually starts to the Bull run.
The first halving occurred in November 2012 and since then, the block reward has been reduced from 50 to 6.25 bitcoins.
Every time a halving occurs, the supply of new bitcoins is reduced, which can have an impact on the price and adoption of the cryptocurrency.
2020 was a historic year for financial markets of all types of assets and Bitcoin was no exception.
On May 11, 2020, it was the most recent Bitcoin halving causing the block reward to drop from 12.5 to 6.25 Bitcoins. This activity has shown certain patterns and trends in the cryptocurrency market, one of them is that before and after each halving, there has been a significant increase in the price of Bitcoin, this is due to the decrease in supply and the growing demand.
However, the cryptocurrency market is known to be highly volatile, and halvings are also a demonstration of this.
During the periods before and after the halving, a higher level of uncertainty and price fluctuations can be expected.
Halvings have also been a turning point for Bitcoin adoption, as after each event, there has been an increase in interest and market share, fueling the growth of the cryptocurrency.
Likewise, these events have always meant bullish years, so for the next one, scheduled for May 2024, the price of Bitcoin is expected to reach all-time highs again. Therefore, today there is a good window with low prices to enter since after the Halving its value could be multiplied up to 9 times.
However, it is important to note that historical patterns do not guarantee future results and that the cryptocurrency market is highly volatile and subject to change at any time, which means that you should always be alert to possible changes.
In conclusion, the cryptocurrency market continues with many possibilities for growth.
Although the continuous falls of bitcoin generate a reduction in the costs to mine and invest in cryptocurrencies that allows anyone to enter the market placing a reasonable capital, it is likely that this situation will change after the next Halving from what can be said that this is a good time to get into Bitcoin mining.
Co-founder of crypto South American Miners (SAM).
Source: Ambito
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