the halving is less than a month away, what will change?

It is the most attended event in the crypto ecosystem. The Bitcoin (BTC) halving is fast approaching, and it is generating its share of hope and transformations. We take stock of what will change in less than a month.

Bitcoin halving: what will change?

The Bitcoin (BTC) halving is a regular event, which takes place approximately every 4 years (every 210,000 blocks). This is an anti-inflationary mechanism, which ensures that mining rewards are reduced periodically. Inflation is in fact controlled by the gradual reduction in the number of BTC produced.

πŸ‘‰ To go deeper – What is Bitcoin (BTC) halving and what are its effects?

The next Bitcoin halving will take place in less than a monthas we can see on our countdown:

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Concretely, this means that since 2020, miners have earned 6.25 BTC per block mined, and that these rewards will drop to 3,125 BTC per mined block within a month. In 2028, these rewards will only amount to 1.5625 BTC.

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The consequences for the price of Bitcoin

Given Bitcoin's years of existence, we have a history that allows us to anticipate the most likely scenario for cryptocurrency. Here's what happened in recent years when a halving took place:

1. Mining reward is halved, inflation is halved;
2. The available supply is reduced, the demand grows;
3. As demand increases relative to supply, the price of BTC increases.

πŸ‘‰ Find our guide – How to buy Bitcoin in 2024? Get guided step by step

This is for theory, because this is what has historically happened with Bitcoin. Note that the only thing absolutely certain is that the available supply will be reduced. When it comes to demand, which influences the price of Bitcoin, things are less certain. BTC is of course affected by many factors, so its price rise is not guaranteed.

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A very optimistic ecosystem

That said, most commentators are optimistic. On the one hand because this has always been the case until now, and on the other because demand for BTC saw a clear increase ahead of the halving. Needless to say, in recent months, the largest cryptocurrency has seen an all-time high, and the approval of spot Bitcoin ETFs has triggered an influx from institutional investors.

πŸ‘‰ Also in the news – Bitcoin (BTC) and Ethereum (ETH): ETNs are coming soon to the London Stock Exchange

Will the halving therefore be a new trigger that will allow the bull run to continue? This is the hope of many. Until then, miners are taking advantage of the last few weeks where rewards are high: the mining difficulty of Bitcoin (BTC) reached an absolute record around ten days ago.

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