Bitcoin Halving 2023: The Last Chance to Buy Cheap Bitcoins
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The world’s largest cryptocurrency by market capitalization, Bitcoin (BTC-USD), is still in focus among many investors looking for growth. One of the main potential upcoming growth drivers for this key crypto will be the upcoming Bitcoin halvingset for a time in 2024.
With this Bitcoin halving event on the horizon, opportunities to buy “cheap” Bitcoins may be approaching. For this reason, many experts have pointed to 2023 as a great period to start uploading this top crypt.
Let’s dive into what this Bitcoin halving event means and what crypto investors should expect from this token going forward.
What is a Bitcoin Halving?
It is not really possible to predict exactly when a Bitcoin halving event will happen. Essentially, a halving happens every 210,000 blocks, which has typically taken around four years to materialize in the past. If this trend continues, the previous four-year window (2012 halving, 2016 halving and 2020 halving) will remain intact. That said, we could see this halving sooner, with some potentially calling for a late 2023 date.
A Bitcoin halving refers to the halving of mining rewards on the Bitcoin network. With half the amount of Bitcoin minted as a reward to miners for validating transactions and securing the network, Bitcoin’s price will have to rise to justify the energy production required to mine Bitcoin.
Bitcoin mining involves highly specialized computers solving complex cryptographic problems on the blockchain. Thus, the energy use for this so-called proof-of-work mining system is enormous.
For this activity to be economically viable, the price of Bitcoin in US dollars must be above the break-even rate, otherwise the network could see reduced security and longer lags in transaction processing. In previous halving cycles, therefore, the price of Bitcoin had moved higher around the event (before, but mostly after, said halving).
Will Bitcoin Rise Again?
The number of Bitcoin halving cycles we have to rely on is limited. There have only been three so far in the entire life cycle of Bitcoin. Therefore, there is a small selection for investors to base their investment decisions on.
But using history as a guide, there is a strong correlation between halving events and an increase in Bitcoin’s price. It’s hard to think why this time might be different (apart from the fact that we’re in a completely different macro environment).
Accordingly, for those looking to play the odds, this upcoming halving event is the key catalyst to watch. It’s certainly on my radar, and one that I think should be getting more attention right now.
Why Bitcoin is a buy right now
That’s one reason why many investors believe Bitcoin is a viable investment in 2023. It’s the defensive qualities BTC provides over USD-denominated investments in times of currency crisis. It’s the decentralized nature of the network and Bitcoin’s size relative to other digital assets. And then there’s the upcoming halving event, which I expect more investors will be watching closely.
I believe that Bitcoin is probably the most stable and viable option for investors outside of the crypto space to add exposure to. Therefore, if institutional demand for crypto picks up, Bitcoin will be the likely beneficiary.
With this in mind, Bitcoin looks well positioned for solid performance in 2023 and 2024. We’ll see how it all plays out. In fact, volatility in the crypto sector works both ways, so nothing is certain.
That said, this is a top cryptocurrency that investors should pay attention to ahead of this key event.
As of the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publishing Guidelines.
