When trading with Bitcoin, it is very important for users to get familiar with all terms and processes that are included.
That way, they will get more familiar with how this cryptocurrency works and thus, master the art of trading.
One of the most important processes that take place in this network is halving events. Every expert will tell you that if you want to get familiar with Bitcoin trading, you must know everything there is to know about these events. With that being said, we wanted to take a look at what is their purpose, why are they so beneficial, and when do they take place.
It Controls the Flow Of Bitcoins to the Network
Halving events take place when around 210,000 Bitcoins are mined. That happens every 4 years. Since Bitcoin was established in 2008, we’ve had a total of 3 halving events so far. The first one took place in 2012, the second one took place in 216, and the last one was in May 2020.
Their purpose is to control the flow of Bitcoins that are released in the network and thus, make sure that it is not overflown with this cryptocurrency. How do they manage to do that? They make mining extremely hard.
Just a reminder, Bitcoin mining involves recording and verifying Bitcoin transaction. It is one of the processes that power its blockchain technology and allow Bitcoin to maintain its stability. The more transactions are recorded by a miner; the more Bitcoins are received as a reward.
They Lead to Price Surges
After the 2012 halving event, Bitcoin spiked a bit later and reached a price of $713. The 2016 halving event led to the 2017 record in value, while the 2020 halving event led us to where we are now. At the moment, Bitcoin’s price fluctuates between $55,000 and $60,000. Many experts even believe that it can go as high as $100,000 by the time 2021 ends.
After halving events end, traders register at reputable trading sites such as Bitcoin System. These sites allow them to sell their Bitcoins and maximize their profits. Not only that but the platform that we mentioned even has one additional advanced service that is available to the sellers.
It utilizes an AI system that collects all the data about Bitcoin from the market. This data is analyzed and used to make accurate predictions on Bitcoin’s future fluctuations with great precision. That is the reason why their profitability rate is so high and why thousands of people register at their platform.
Speaking of the process of registration, it lasts just a minute. All you have to do is fill out an online application form and use your preferred method to deposit funds into your account.
When are the Next Halving Events?
One thing that all halving events have in common is that after they end, Bitcoin’s price reaches a peak exactly a year and a half later. That is why experts believe that even though Bitcoin hit the $60,000 mark recently, it will continue to rise and peak around summer or autumn of 2021.
As for the next halving events, so far, there are 3 confirmed years – 2024, 2028, and 2032. By 2032, it is expected for users to mine 99% of the Bitcoins available. But, it would take a lot more time to mine all of them. Experts believe that all Bitcoins will be mined around 2140.
It goes without saying that halving events are essential to the stability of the network. They are the counterpart of mining and make sure that all Bitcoins are not mined with ease. But, as they are not the only process that power Bitcoin, we advise you to also take a look at the rest of the technology behind this cryptocurrency. The sooner you get familiar with it, the sooner will you master the art of Bitcoin trading and make a profit.
Keep up with the top stories from Reader’s Digest by subscribing to our weekly newsletter.