The blockchain ecosystem has been affected since the historic halving of Bitcoin. The block reward of Bitcoin was reduced to 3.125 BTC from 6.25 BTC. What exactly is the halving of Bitcoin? Every four years, the block reward for Bitcoin miners is cut in half in an event called “Bitcoin halving”, and this will continue until 21 million Bitcoins are issued. But how does halving exactly work for Bitcoin? How can you make use of the “halving” of Bitcoin?
Let us explore everything you need to know;
What do you need to know about Bitcoin Halving?
The process of splitting the Bitcoin rewards into half is called “Bitcoin halving” and this happens every four years. It is the rate at which new Bitcoin enters circulation. It is through this process that the Bitcoins control the price increase until the token is in circulation.
The reward per block when Bitcoin was launched was 50 BTC. The system is set to reduce the miner’s rewards in half for every 210,000 blocks added to the blockchain.
Since each block takes about 10 minutes to mine, it takes about four years to add that many blocks to the blockchain. Following the basic principles of supply and demand Bitcoin halving tends to result in higher Bitcoin prices if demand rises or remains steady.
This happens because the halving reduces the amount of new Bitcoin introduced in the market. Bitcoin’s limited supply of 21 million makes it short and thus it becomes a valuable asset if the demand for it continues to increase.
According to predictions the final halving is expected to take place in 2140. This is the best time for crypto investment. We will guide you through the best 5 cryptocurrencies you can consider amid the halving of Bitcoin.
Check out the 5 cryptocurrencies
Even though the Bitcoin ETF has been approved they are working on the Ethereum ETF, if the Ethereum ETF gets approved one might observe a lot of money coming into the Ethereum network. So let’s begin;
- Ethereum: These are the coins that could potentially go up to 10X but not much more. When the Ethereum ETF gets approved there can be a rise in the Ethereum price. Ethereum has increased demand post-Bitcoin halving. It is a leading platform for decentralised applications and smart contracts. The upcoming transition to Ethereum 2.0 and the potential for improved scalability and efficiency are giving hope to investors.
- Meme coins: Meme coins might go from 10X to a potential rise of 100X. This makes meme coins pop up whenever there is a bull market in crypto.
- Solana: The next coin that you can place in the 10 to 20X category is Solano. It has a great ecosystem and a lot of the meme coins are being built on the Solana network.
- Jupiter: The price of Jupiter has increased over the past six months, by 3827.33%. With the recent one-week gain of 6.96% the coin is trading between $0.96 and $1.28 but in the last month, it dipped by 4.10%. Current trends indicate a blend of both instant and corrective moves, which aims for higher levels with the nearest resistance at $1.41.
- Polkadot (DOT): Polkadot shows a positive price change at 8060% but faces a downturn over the past month, down by 16.57%. The six-month climb of 77.80% is also quite impressive. Currently, DOT trades within the range of $6.52 to $7.53. This upward push indicates an impulsive move, supported by a high RSI at 72.18, hinting at a strong buying interest.
Conclusion
Do you think Bitcoin halving is sustainable in the future? After the last halving miners will get zero block reward mining, but will still be able to collect transaction fees for keeping the blockchain running. Ideally, the transaction fees will be the incentive for miners to keep and secure the network.
Predicting the top five cryptocurrencies after a Bitcoin halving can be speculative since it depends on various factors including market sensations, adoption, technological advancements, and regulatory mechanisms.
However, the above-mentioned cryptocurrencies have shown resilience and potential for growth post-halving. Also, remember that this list is speculative, and investing in cryptocurrencies carries inherent risks. It is necessary to conduct research and consider your risk tolerance before investing.
Read More: The Top 50 Cryptocurrencies of 2024: The Definitive List for the UK and the US
