Bitcoin halving is one of the most important and popular terms among the crypto traders and if you are new to the crypto space you should know about it as well. Terms such as BTC halving are an essential part of the entire crypto buying and trading experience.
Buying, selling, trading or even hodling crypto assets is not as simple and basic as one might think. There are several aspects that are a part of these endeavors and if the interested parties are unaware of the basic details the overall experience can become even more challenging for them.
Therefore, if you are new to the crypto space you should be aware of terminologies such as BTC halving, what it is, how it happens and when is the next Bitcoin halving.
Here are some of the most essential details of the halving concept that can help you get a good idea of what it is.
Understanding the Term Bitcoin Halving
While understanding what the term means, you can also get a good idea of how it affects the general market, crypto mining and more. You can also learn how you can benefit from it and what it really stands for.
However, the first thing you need to determine is what the term “halving” means. This is a popular process where the future supply of the flagship crypto asset is reduced to half. Due to this feature or process, the supply of the crypto king continues to fall in the market.
It occurs after every four years, which means that as the years go by this process will continue and the supply of BTC will keep on reducing from time to time. The purpose of Bitcoin halving is that the value and price of the digital asset keeps growing while it remains safe from inflation.
Since the demand of the flagship crypto asset is growing each day, the supply must remain limited to prevent the asset from inflating.
When Does Halving Occur?
Halving occurs after every four years. However, the estimated time can be more or less accurate as a new block is added to the countdowns after every 10 minutes. This causes the block time to change on a daily basis. Therefore, the estimated time of when the next Bitcoin halving occurs can change.
This is why, a more accurate way to calculate the next halving is that it takes place every 210,000 blocks.
The last and third Bitcoin halving took place in 2020 so according to that the next halving of BTC will take place in 2024.
Impact of Halving on Miners
Bitcoin halving is a process that affects the crypto miners. As established above, the halving process cuts in half the future supply of the flagship crypto asset.
This means that because of halving the flagship cryptocurrency created from block validation significantly drops. This causes the supply to drop while the demand for Bitcoin keeps growing.
Impact of Halving on the General Crypto Market
Before the next Bitcoin halving occurs, it is helpful for you to understand the impact this process has on various elements around, including the general crypto market.
Bitcoin is the most prominent crypto asset in the world and has approximately 60% dominance on the crypto industry. This results in price fluctuations of all other altcoins as soon as the price of Bitcoin moves up or down.
When the crypto king performs well, the altcoins underperform because the investors start pulling their funds out from altcoins and place them for Bitcoin to benefit from the price surge that usually occurs after every halving.
How to Benefit from Halving?
Bitcoin halving does offer opportunities to traders to get some benefits, which are important for you to know before the next halving occurs.
The best and most common way for people to benefit from BTC halving is the buy and hold strategy. With the help of this strategy, the traders buy and hold the flagship crypto asset in their wallets and wait until the price of the asset surges after the halving is complete.
Crypto traders have benefitted from this strategy, however, there is no guarantee that the same will happen for every trader. However, knowing about such strategies and how they offer a possibility for benefit can increase the chances to a great extent.
Therefore, as a new crypto trader, it is important for you to know about the halving process and all other important and relevant aspects.
One of the most important terms to know about is Bitcoin halving. This is a process that is important for the long-term value and price surge of the flagship crypto asset. If you are new to crypto trading then you should first have the above-mentioned information and then trade BTC.