In 2023, Bitcoin (CRYPTO: BTC) witnessed a remarkable 150% surge, marking the end of the longest crypto winter on record. The anticipation for 2024 is mounting, and historical trends, coupled with evolving supply and demand dynamics, suggest another impressive year ahead.
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Projected end of mining in 2040
The intrinsic value of Bitcoin lies in its finite supply of 21 million coins, making it increasingly scarce over time. This scarcity is maintained through a built-in mechanism known as halving, occurring every 210,000 blocks, or approximately every four years. As of the next halving in April 2024, Bitcoin’s annual supply growth rate will decrease from 1.75% to a mere 0.875%, ensuring a gradual introduction of the remaining 1.4 million coins into the market until the projected end of mining in 2040.
Halving events not only form the cornerstone of Bitcoin’s robust monetary policy but also impact short-term price dynamics. The reduced supply growth rate, combined with elementary supply and demand principles, historically results in price increases during halving years. Past performance indicates an average price rise of 128% during halving years, suggesting a potential 2024 value of around $96,000.
Upcoming April 2024
The upcoming April 2024 halving is unprecedented, as it marks the first time in Bitcoin’s history that the available supply will be lower than at the previous halving. This decline in supply is attributed to long-term holders, who, during the crypto winter, engaged in historic accumulation. Despite price drops, these steadfast investors, holding approximately 75% of Bitcoin’s total circulating supply, continued to accumulate coins.
The decrease in available Bitcoins on exchanges, down nearly 30% from March 2020 to 2.3 million, is a testament to the commitment of long-term holders. As Bitcoin enters uncharted territory with the April halving, the scarcity of available coins and reduced supply growth could lead to a significant price surge. While the exact degree remains uncertain, the combination of a supply crunch and the impact of the halving may propel Bitcoin beyond the coveted $100,000 mark in 2024.
Want to learn more about bitcoin mining or start mining yourself?
“This data underscores considerably stronger profitability in the mining sector compared to challenges experienced in 2022 and part of 2023.”
In approximately six months, Bitcoin undergo a “halving,” reducing the new bitcoins awarded to miners by half. Satoshi Nakamoto introduced this event in 2009 as an anti-inflationary measure. Occurring roughly every four years, the lead-up to halvings traditionally proves the most profitable time for crypto investors. “Buying bitcoin six months before a halving and selling 18 months after has historically outperformed a ‘buy and hold’ strategy,” affirms the analyst.
Bitcoin mining explained.
Bitcoin Mining is the industry where the largest institutional party BlackRock is betting big and has recently become majority shareholder in four of the five largest mining companies.
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Full article about mining in depth you can find here. Bitcoin mining – Buy Low Mine High.
The simple way how smart investors can profit from a broken banking system. How crypto miners made 16.7 billion USD in 1 year and how we can get a piece of it. How anyone can make money with crypto mining within 4-8 weeks, regardless of your knowledge or experience.
