cioreviewindia Team | Wednesday, 19 May 2021, 11:40 IST
Bitcoin trading is one of the most profitable 'job occupations' at the moment. Some research has stated that there may be as many as 100,000 Bitcoin millionaires in the world and that is a mesmerizing number. It also serves as a motivation for many other people to invest in this cryptocurrency.
One of the most important processes that take place in Bitcoin's network is halving events. They are famously known as one of the biggest indicators of future rises in the value of this cryptocurrency. We wanted to take a look at how halving events influence Bitcoin’s price. Not only that, but we’ll also see what the future events of this type have in store for Bitcoin.
How Halving Events Lead to Price Surges?
Halving events take place every 4 years and their purpose is to lower the circulation of Bitcoins in the network to make sure that it is not overflown. Think of them as mining’s bad brother. If the purpose of mining is to create Bitcoins, then halving events make it harder for miners to earn this cryptocurrency.
Due to the fact that the circulation of Bitcoins is cut, it becomes much harder to earn them, hence their value increases massively. So far, there have been a total of 3 halving events and all of them led to price surges. One was in 2012, one was in 2017, and the last one took place in 2020.
The Most Recent Halving Event
The most recent halving event provided us with fantastic results. After it was held in May 2020, the price of 1 Bitcoin started rising very fast after that. Many experts even started claiming that Bitcoin has the potential to break the 2017 record in value. Just a reminder, on December 27, 2017, Bitcoin reached a peak value of over $19,000.
Hence, many new traders started registering at reputable trading sites such as Bitcoin Fortress. These trading sites provided traders with exceptional services and made it easier for them to maximize their profits. The one we just mentioned has thousands of registered users today and a very high daily profitability rate.
After being on a steady rise for a few months, Bitcoin finally managed to top $20,000 and break the 2017 record in value in mid-December. But, while many thought that it will plunge, it did the complete opposite of that. Not only did it remain stable, but Bitcoin continued to rise in value.
In February, after Tesla decided to invest around $1.5 billion in Bitcoin, its price crossed $50,000 for the first time in history. Then, it went over $60,000 in April. What’s even better, is the fact that experts believe that Bitcoin will continue to rise even more.
According to the previous halving events, it took Bitcoin around a year and a half to reach its peak value. With that logic in mind, experts believe that Bitcoin will peak around the autumn of 2021 and maybe even climb as high as $100,000.
As you can see, halving events do have a major influence on Bitcoin’s fluctuations. But, what about the future of these events?
Future Halving Events
So far, there are three scheduled halving events for the future. The next one will be in 20242, then we'll have one in 2028, and one in 2032. It is expected that after the 2032 halving event ends, around 99% of all Bitcoins will be mined.
To add to that, it is expected that 100% of Bitcoins will be mined by 2140. At this point, Bitcoin will finally enter a stable state and will not experience such aggressive fluctuations in value. As you may know, this is a highly volatile cryptocurrency and due to that fact, its price is subject to daily changes. Bitcoin’s value can rise and drop by the thousands with each passing day.
Take the Tesla investment as an example. After they invested in Bitcoin, its price went from $47,000 to over $50,000 in just a few days.
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