Understanding The 2024 Bitcoin Halvening

The 2024 bitcoin halvening event for bitcoiners is similar to what solar eclipses are like for astronomers — sort of like the olympics for crypto nerds. It’s an occurrence that holds great implications for investors, miners and the broader crypto market. This article looks to explain the bitcoin halvening and demystify the process, explore its historical roots, discuss its potential benefits and guide Canadian crypto investors on how to leverage this event through platforms like MyBTC.ca.

The Phenomenon of Bitcoin Halvening

The term "halvening" (aka halving) refers to the splitting in half of the rewards that bitcoin miners receive for adding new blocks to the blockchain. This event occurs approximately every four years or after every 210,000 blocks are mined. At its inception — bitcoin’s block reward was 50 BTC. Following the first halvening in 2012, this reward was halved to 25 BTC, then to 12.5 BTC in 2016 — and most recently to 6.25 BTC in 2020. In the upcoming 2024 halvening, the reward will decrease to 3.125 BTC.

This mechanism was designed by “Satoshi Nakamoto”, bitcoin’s anonymous creator — to control the supply of bitcoin and mimic the extraction of a finite resource like gold (hence BTC being sometimes called “digital gold”). This finite supply capped at 21 million BTC, coupled with the halvening process, inherently drives deflationary pressure, potentially increasing bitcoin’s value over time as scarcity increases.

Image Credit: Bitcoin Magazine

Historical Impact of the Halvening

Historically each halvening event has been a catalyst for very bullish activity in the bitcoin market. The periods leading up to and following the previous halvenings have often seen noticeable increases in the price of bitcoin. For instance, the year following the 2016 halvening saw BTC’s price rise dramatically, peaking at nearly $20,000 USD / $27,500 CAD in December 2017. Similar trends were observed after the 2020 halvening, which contributed to the great 2021 bull run, pushing prices to then all-time highs.

Benefits of the Halvening Event

Bitcoin investors can reap rewards via the halvening event if it presents lucrative opportunities that can be harnessed. The increased scarcity of bitcoin can drive up its price in the halvening’s aftermath, benefiting those who hodl or are looking to sell the cryptocurrency and take fiat profit off the table. For those looking to expand their portfolio or enter the market, strategic purchases before and after the halvening can potentially yield considerable returns as the market adjusts to the new supply level post-halvening.

Preparing for the Halvening with MyBTC.ca

Canadians interested in taking advantage of the halvening can use the speed and ease of use MyBTC.ca offers through our straightforward platform for both purchasing and selling bitcoin or ether. Investors can easily fund their accounts to buy BTC or ETH by visiting MyBTC.ca/fund. Our platform not only simplifies the process of acquiring bitcoin before and after the halvening event, but also helps make sure you are well positioned to benefit from potential price increases resulting from the halvening. Either way, MyBTC.ca is ready and on standby as your trusted platform.

Are You Ready?

After the halvening has occurred, should you decide to realize some or all of your gains — or adjust your investment strategy, MyBTC.ca provides a secure and efficient platform for selling your bitcoin or ethereum. The 2024 Bitcoin halvening is not just a technical event but also a milestone within the cryptospace that could have the potential to reshape the charts moving forward and how we analyze all things bitcoin.

By understanding its historical implications, potential benefits, and how to traverse the market during this period — investors can make informed decisions to optimize their investment strategies. If you are looking to buy or sell bitcoin in Canada, MyBTC.ca stands ready as your trusted partner in navigating the exciting opportunities presented by the 2024 bitcoin halvening.