Bitcoin Halving: A New Class Of Bitcoin Millionaires Emerge Crypto investors and hodlers alike are sitting on the edge of their seats, waiting to see what unfolds with the highly anticipated bitcoin halving event that is scheduled to take place mid-May.
Since bitcoin’s inception in 2009, the halving (also known as halvening), is an event that takes place roughly every 4 years. During the halving, block rewards are cut in half, which in turn, limits the supply of bitcoins.
Michael Dubrovsky, cofounder of the mining company PoWx puts sheds light as to how the bitcoin halving impacts price, “The theory is that there will be less bitcoin available to buy if miners have less to sell.” So, from a supply-demand perspective:
- If bitcoin supply decreases and the demand for bitcoin stays the same, then the price of bitcoin will increase.
- If bitcoin supply decreases and the demand for bitcoin increases (ie. Institutional investors, millennials, or boomers, etc. looking to capitalize on the hype increases), then the price of bitcoin will see a significant increase in price.