Key Insights:
Bitcoin has given phenomenal returns after a year when bought before its Halving. The past three Halvings gave phenomenal returns in 2012 (8069%), 2016 (284%) and 2020 (538%).
In blockchain, halving reduces the number of new coins entering the circulation and hence, makes it rare. This makes Bitcoins more scarce and increases their value.
Till now Bitcoin has seen three halvings that took place in 2012, 2016 and 2020. The fourth halving is scheduled to take place approximately in April 2024. Each one reduces the block rewards by half and therefore named as halving.
#NOTE: Block rewards are the new BTC that are awarded to miners for validating Bitcoin transactions. A total of 21 million Bitcoins are ever to be mined and the last one is expected to be mined around the year 2100.
Each halving takes place at a block height of every 210k blocks. Though each block is scheduled to be mined after every 10 minutes, the difference in exact dates of the halving occurs due to the fact that all blocks are not of the same size. Some take more than 10 minutes and some take less.
The data below shows details about each halving and how everytime there is a high profit for those who hold BTC for a year after halving.
The first halving took place on Nov 28, 2012 and reduced the block reward from 50 BTC to 25 BTC.
If someone had bought BTC a year before the halving, they would have reaped 385% returns. However, for someone who bought Bitcoin on the date of the halving and held it for a year, they would have received a phenomenal 80x returns (or 8069%).
The second halving took place on July 09, 2016 and it reduced the block rewards from 25 BTC to 12.5 BTC.
If someone had bought BTC on that day and held to it for a year, they would have reaped 284% returns.
The last halving took place on May 11, 2020 which reduced the block rewards from 12.5 BTC to 6.25 BTC.
If someone had bought BTC on the halving date, they would have gained 538% returns. Now if the same person would have bought Bitcoin a year before halving, they would have just made 37% returns (still greater than fiat money).
The current halving which is scheduled to reduce block rewards from 6.25 BTC to 3.125 BTC is expected to happen in April 2024. The exact date cannot be confirmed because the halving is scheduled as per the block height.
Block height for any blockchain is the number of blocks that have been created on the blockchain till present date and time.
Experts across the board have estimated high price estimates for BTC because of the recent Bitcoin ETF approval which enables everyone to invest in Bitcoin without having to learn to manage it.
Further, with ETFs, there also comes regulations which helps institutional investors like Wealth Funds, Sovereign Funds and others to easily invest in it.
Here are some bullish estimates from various experts:
We have used weekly charts for estimating BTC prices by the end of 2024.
The charts show that the price still has a high momentum as of Jan 2024. Its RSI is strong despite some selloffs recently. Another indicator MACD shows that the price has some momentum and the bullish trend is intact (blue line above orange line).
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.