Bitcoin Halving 2024: Will BTC Finally Surpass the $100,000 Milestone?
The Bitcoin community is abuzz with anticipation as the next halving event nears in April 2024. Historically, such events have preceded significant price surges for the foremost cryptocurrency. The WirtschaftsWoche explores the implications and expectations for investors.
The term "halving" denotes the halving of the reward that miners receive for validating transactions and safeguarding the network. Currently, miners are rewarded with 6.25 Bitcoins for each block mined, but this will halve to 3.125 coins post the event – a cycle that recurs roughly every four years or after 210,000 new blocks are mined.
The Best Mining Providers at a Glance
» Infinity HashFrom our perspective, currently the best mining provider on the market. With the community concept, you participate in a mining pool completely managed by professionals. A portion of the earnings are used for expansion and maintenance. We've never seen this solved as cleanly anywhere else.
» Hashing24A well-known and established cloud hosting company. With a good entry point and in a good market phase, a good ROI can also be generated with some patience. Unfortunately, we see the durations as a major drawback.
Bitcoin's enigmatic creator Satoshi Nakamoto designed the halving as an anti-inflationary measure, capping Bitcoin's maximum supply at 21 million units. With almost 19.7 million Bitcoins already mined, we're approaching an era of significantly decelerated new coin production, ultimately stopping around 2140.
Historical precedents suggest that the halvings have triggered bull markets that drove Bitcoin's value upward. Nonetheless, it is crucial to acknowledge that past results are not definitive markers of future performance. Although some analysts project a bullish outcome post-halving, pointing to the rising demand from institutional exchange-traded funds (ETFs) potentially outweighing the reduced supply, caution is advised in presuming a repeat of history.
Investors considering whether to initiate or increase their Bitcoin investments in anticipation of the halving should first assess their risk tolerance; the crypto markets are notably more volatile than traditional assets such as stocks or bonds.
For those hesitant about making lump-sum investments that might be vulnerable to short-term market fluctuations post-halving, dollar-cost averaging might be a suitable alternative. This investment approach entails regular, incremental investments over time, which may yield a more measured exposure in the face of uncertainty while remaining open to the potential gains anticipated by some enthusiasts who forecast Bitcoin reaching beyond $100,000, or even envisioning valuations of a million dollars in the future.
