Jupiter-Uranus Alignment: The Bitcoin Halving Event of 2024

Bitcoin Halving is the event where the number of generated Bitcoin rewards per block will be halved (divided by 2). In this upcoming halving, the total number of Bitcoin mined by miners per block will be reduced from 6.25 to 3.125. This halving event takes place approximately every 4 years and ensures its monetary policy.

Bitcoin Halving Dates History

Why is it important?

Bitcoin’s monetary policy helps ensure a gradual distribution of 21 million bitcoin over time. Unlike fiat currencies that are issued by government, bitcoin supply cannot be inflated at will. Conversely, bitcoin was designed to mimic the attributes of gold.

The supply of gold is limited to the amount that can be mined from Earth, and over a period of time becomes scarcer. The halving event is one of the method that is used to replicate bitcoin’s scarcity.

As such, it can be said that bitcoin is a deflationary currency and an asset class to hedge against inflation.

Bitcoin Halving Chart

The graphic below illustrates the inflation rate of Bitcoin over a period of time. Supply gradually tapers after each halving in order to meet the deflationary monetary policy. Miners’ rewards are reduced by half and depicted in the chart as steps or stairs.

What might happen as we get closer to the halving event?

Due to the reduced supply of new coins, bitcoin will be deemed to be scarce by market participants. Traders will enter the market to speculate on bitcoin as such introducing higher volatility during that time. However, some suggested that halving is already priced into bitcoin.

Miners will also see their revenue reduced by half. Therefore it is likely we may end up seeing some miners who are not able to keep up with the operational cost for producing Bitcoin. Those who are not able to sustain themselves would have to shut down their mining rigs and exit the market.

This will cause the bitcoin hash rate to be severely impacted in the short term at a higher mining difficulty causing delays in the bitcoin network during transactions.

When was the last Halving?

The last Bitcoin halving took place in 2020 at block #630,000 on May 11, 2020, 7:23:43 PM UTC. At that time the Bitcoin block reward dropped from 12.5 BTC and cut in half to 6.25 BTC.

When is the next Halving?

The next Bitcoin halving is predicted to take place in 2024 at block #840,000 on April 18, 2024, at 6:06:10 UTC. At that time the Bitcoin block reward is scheduled to drop from 6.25 BTC to 3.125.