2024 Bitcoin Halving

Bitcoin’s underlying technology, blockchain, consists of a network of computers (called nodes) that run Bitcoin’s software and contain a partial or complete history of transactions occurring on its network. Each full node—a node containing the entire history of transactions on Bitcoin—is responsible for approving or declining a transaction in Bitcoin’s network. To do that, the node conducts a check to ensure the transaction is valid.

Each transaction is approved individually. This happens only after all the transactions contained in a block are confirmed. After confirmed, the transaction is sent to the existing blockchain and broadcast to other nodes. Bitcoin mining is the process by which people use computers or mining hardware to participate in Bitcoin’s blockchain network as a transaction processor and validator. Bitcoin uses a system called proof-of-work (PoW) to validate transaction information. It’s called proof-of-work because solving the encrypted hash takes time and energy, which acts as proof that work was done.

After the network mines 210,000 blocks, every four years the block reward given to Bitcoin miners for processing transactions is cut in half. This event is called halving because it cuts the rate at which new bitcoins are circulated in half.

This rewards system will continue until about 2140, when the proposed limit of 21 million coins is reached. At that point, miners will be rewarded with fees for processing transactions, which network users will pay. These fees ensure miners are still incentivized to participate and keep the network going.

The halving event is significant because it marks another drop in the rate of new Bitcoins produced as it approaches its finite supply.

The next bitcoin halving is April of 2024, how do you think this will affect the price of bitcoin and other cryptocurrencies?