If you’re keeping up to date with crypto news lately, chances are you’ve come across the Bitcoin halving event. But if you’re unfamiliar with halving and its potential implications on the price of the world’s largest cryptocurrency, you’d be forgiven for wondering what all the fuss is about!
Thankfully, all that fuss is warranted, and we’re here to tell you why. Here, we’ll take you through the ins and outs of the upcoming halving event, explaining why it’s significant and why now might be a great time to pick up some Bitcoin before the price (probably) skyrockets.
What Is Halving?
Let’s start with the most basic and obvious of questions: what exactly is Bitcoin halving?
Halving is a fundamental part of Bitcoin that occurs approximately every four years, specifically every 210,000 blocks. During this process, the reward that miners receive for validating transactions and confirming them on the blockchain is halved.
Bitcoin’s creator originally set the reward at a lucrative 50 bitcoins per block, before the first halving in 2012 reduced it to 25 bitcoin. Subsequent halvings reduced it further until the most recent event in 2020 which left the reward at 6.25 bitcoins.
This mechanism was put in place to control the total supply of bitcoins, with a capped limit of 21 million. At the current rate, the last Bitcoin will be mined in around 2140.
Why Does It Matter?
So now we have a good understanding of halving is and why they occur, the next logical question is what difference does it make? After all, unless you’re a miner then it shouldn’t really affect you, right?
Well not exactly. You see, as the halving event is used to control the supply and scarcity of Bitcoin, it can have a major impact on its long-term price. In the past, the halving cycle has led to a massive flood of investment over the following 18 months, driving up the price by hundreds and even thousands of percent.
2012 Halving:
The first Bitcoin halving occurred way back in November 2012. In the months leading up to the event, Bitcoin’s price saw a steady increase. Following the halving, there was a notable bull run, and Bitcoin’s price surged over the following months.
2016 Halving:
The second halving took place in July 2016. Similar to 2012, the crypto’s price experienced a steady uptick leading up to the event and afterward a more prolonged bull market, with the price reaching new all-time highs in the following years.
2020 Halving:
The most recent halving occurred just four years ago in May 2020. In the months preceding the event, Bitcoin’s price witnessed a big rally. Following the halving, there was initial volatility with the price peaking and troughing for a few months, but Bitcoin eventually entered a strong bullish phase, reaching new all-time highs in 2021.
What Now?
So with the price of Bitcoin gradually increasing in the months leading up to the halving cycle, before surging in the following months and years, it’s logical to wonder whether the same will happen this time around.
Although it’s important to remember the golden rule that you should never base future predictions on past performance, it’s difficult to see anything other than a surge in the coming months and years.
And that’s before you consider the fact that the Securities and Exchange Commission just approved the first-ever Bitcoin exchange-traded funds (ETFs) which has already seen a flood of investment flowing into the world’s most popular cryptocurrency.
Following the approval, Bitcoin has climbed as high as £38k+, and what’s interesting is the price trend has pretty much mirrored that of 2012, 2016 and 2022 – steady investment leading up to the halving.
Whether the price will surge as it did in previous cycles, only time will tell. But this is starting to look like a very promising time to invest in Bitcoin.
Crypto Cards
If the price of Bitcoin does go through the roof, chances are you might want to cash out some of your gains. But one downside to crypto is cashing out your assets can often be time-consuming and inconvenient. Until now that is!
With crypto cards, you can avoid all that and use your assets to pay for everyday goods. These cards are much like regular bank cards and they can be used to pay for goods and services. The only difference with crypto cards is they’re linked to your wallet rather than your centralised bank account.
When a transaction is made with your card, the crypto is quickly and effortlessly converted into fiat currency. So even though you’ve paid in crypto, the business you’re making the purchase from receives regular cash – winner winner!
In the past, one major drawback of crypto was the difficulty holders had in spending their assets. Previously, crypto was viewed primarily as something to be invested in as opposed to a currency for making everyday purchases.
But all that has changed thanks to the arrival of crypto cards, which means you can now use your crypto for ATM withdrawals or to make payments with any retailer that accepts Visa and Mastercard.
All of this is made possible by providers such as XRPayNet who use blockchain technology to convert your crypto into fiat currency.So to benefit from the ease of crypto cards and spend your potential Bitcoin gains with ease, order your XRPayNet card from us today!