Is Bitcoin Halving A Great Time For Investment?

Bitcoin halving occurs approximately once every four years. During bitcoin halving, the rate of Bitcoin’s creation reduces by 50%. Halving conventionally occurs after 210,000 Bitcoins are mined. In 2024, halving may occur on either 19 or 20 April or earlier. Bitcoin uses a proof-of-work system to acknowledge transactional information. Usually, the value of Bitcoin increases considerably after halving and therefore it is necessary to highlight some of the advantages of investing in Bitcoin during this incident.

Possible Consequences of Bitcoin Halving on Investors

Bitcoin halving provides a lot of opportunities for investors abroad. In the previous halvings, investors did gain significantly because of their all-time high levels. However, there are speculations about whether it is an appropriate moment for investors to invest in Bitcoin because 2024 is slightly different from the previous Bitcoin halving years. This is because, in 2024, several external factors influencing the price of this cryptocurrency are going to alter considerably, since more than half of the world’s population is going to vote for their respective governments. These factors can have a considerable impact on the volatility of cryptocurrencies.

Factors Influencing Bitcoin’s Position During Halving

The approval of the Bitcoin ETF by the SEC will have a profound impact on the prices. It will increase the credibility of Bitcoin in the eyes of the masses. Till March 13, the approval of the ETF led to the accumulation of 30% of the total capital of the cryptocurrency net inflow. Therefore, halving will diminish the international supply of Bitcoin. Thus, it will, like the previous events, have a positive impact on the prices of the cryptocurrency and fetch more gains for the investors. 

When the supply of Bitcoins reduces due to halving, there is a high possibility that prices will surge and benefit the investors who already possess Bitcoins. The lack of supply will result in more capital inflows. Many experts anticipate that these cycles will improve the aspirations of the investors. Currently, there are different opinions of experts on the actual impact of the halving. This is because some rightly point out that Bitcoin’s value remains undervalued despite the previous halvings. It may cross the $100,000 level and create a new record in the history of Bitcoin. However, simultaneously some factors may lead to more volatility. Therefore, investors must remain equally hopeful and cautious about the halving event. 

Also Read- Importance of Crypto Exchange Software in Financial Freedom

Bottom Line

The three previous Bitcoin halving incidents invariably had a positive impact on the prices of Bitcoin. The fact is since 2012, the value of Bitcoin rose by 8000%. In 2016, the value rose by 1400% and after 2020 it rose by 700%. These previous trends show that investors largely benefited from the halving incidents as there is an inverse relationship between Bitcoin’s increasing scarcity and price rise. However, 2024 is slightly different since the external factors may play a bigger role and the impact may lead to different outcomes. But looking at the larger picture, Bitcoin halving is indeed a great time for investment for more returns.