Cryptocurrency experts anticipate the Bitcoin halving in April 2024, potentially influencing its price.
This halving, part of Bitcoin’s protocol, aims to manage its supply. The total supply of Bitcoins is capped at 21 million. Currently, there are over 19 million Bitcoins in circulation, leaving fewer than two million to be mined.
“One of the most important features of Bitcoin is its limited supply and issuance mechanism,” said Bruce Fenton, CEO of Chainstone Labs, a fintech company.
The having process, which happens every four years, halves Bitcoin mining rewards. IT reduces the mining rate and aims to counter inflation by ensuring Bitcoin’s scarcity. With constant demand, this theoretically increases Bitcoin’s price.
“Bitcoin’s production scarcity is what defines its finiteness, and when rewards decrease, the supply is constrained,” said Chris Kline, chief operating officer of Bitcoin IRA. “Increasing demand at a time when supply is constrained has a positive impact on price, which can make Bitcoin alluring to investors.”
History of halving
The first Bitcoin halving happened in November 2012 and the second in July 2016. The third, and most recent, halving took place in May 2020. Experts anticipate the next halving around April 2024.
The prediction of Bitcoin halvings is based on the automatic reduction of mining rewards by the Bitcoin protocol every 210,000 blocks. While the protocol aims for a 10-minute block addition interval, the actual timing varies for each block, potentially affecting halving estimations.
Experts suggest the four-year halving cycle aims to mitigate investor shock. However, Rob Chang, CEO of Gryphon Digital Mining, notes Bitcoin’s price tends to show volatility around halving events, with prices often rising significantly in the months following.
Impact on miners and investors
Bitcoin halving will affect miners and investors. Lower Bitcoin mining rewards mean reduced profitability for miners. Those using less efficient hardware may face higher energy costs, potentially altering the mining landscape.
The halving will also affect the miners in the long run. The final halving is expected to occur in 2140, by which time all 21 million Bitcoins will have been mined, leaving no new coins to be generated. Consequently, miners can no longer profit from rewards and must rely solely on transaction fees for compensation.
Richard Baker, CEO of TAAL Distributed Information Technologies, suggests that following the next BTC halving, miners may redirect their processing power to other cryptocurrencies due to decreased profitability in mining Bitcoin. However, fewer miners could make the Bitcoin network less secure.
On the other hand, some investors may find Bitcoin more attractive as a long-term asset due to its ability to withstand inflation through the halving process.
Patricia Trompeter, CEO of Sphere 3D Corp, highlights that halving miner rewards will automatically reduce the supply of new coins, even if demand remains constant.
“If the economic theory holds true, which historically for Bitcoin it has, Bitcoin prices should increase dramatically in response to the supply shock,” she says. “Although, there is still debate on whether the historical price movement around each halving was a direct product of the halving.”
Bitcoin on crypto casinos
Fluctuations in Bitcoin pricing resulting from halving could impact not only miners and investors but also Bitcoin users. As the flagship cryptocurrency, Bitcoin is widely used across various sectors, including online casinos.
Koinly predicts the crypto gambling market to reach $90 billion in 2024.
The size of the crypto gambling industry proves there are many crypto casinos. While this provides players with numerous options, it also makes finding a fantastic crypto gambling portal difficult.
There are considerations to determine whether a crypto casino is good, such as its license, security measures, and game library. The quality of a crypto casino can also be determined by user reviews and the payment options it offers.
Compared to traditional online casinos, crypto casinos also offer distinct advantages. They facilitate faster transaction processing and provide enhanced privacy and security through cryptocurrency use.
Like their traditional counterparts, crypto casinos offer hundreds or thousands of games, each with different Return-to-Player (RTP) and volatility levels, catering to diverse player experiences.
In simple terms, RTP shows the percentage of wagered money that a game will give back to players. For example, an 80% RTP means that for every $100 wagered, players will receive $80 back. However, RTP does not apply to every instance of gameplay.
