The Bitcoin Halving and What It Will Mean in the Future

When it comes to the Bitcoin halving, there are some things that need to be taken into account as the next few days roll around.

What is the Bitcoin halving?

To put it simply, the Bitcoin Halving is a predetermined event in the Bitcoin network that occurs approximately every four years. During a halving, the reward for mining new Bitcoin blocks is reduced by half. This reduction in supply is designed to control inflation and maintain the scarcity of Bitcoin, as there will only ever be a maximum of 21 million Bitcoins in existence.

Here’s a simplified breakdown of the process:

1. Bitcoin’s creator, Satoshi Nakamoto, designed the cryptocurrency with a finite supply of 21 million coins.

2. To control the rate at which new Bitcoins are introduced into circulation, the mining reward is halved at specific intervals.

3. A halving event takes place roughly every four years, or after the mining of 210,000 blocks.

4. The mining reward is the incentive given to miners for verifying transactions and maintaining the network’s security.

5. After each halving, the mining reward is reduced by 50%, which means miners receive half as many Bitcoins for their efforts.

As the Bitcoin halving draws near, the crypto market as a whole will begin to pull back and start to go down. Most, if not all, projects will dip in price. This isn't to cause alarm as this is a normal thing to take place around this time. As it has happened in the past few times the halving has taken place.

What needs to be considered is that when prices dip, including the price of Bitcoin itself, there isn't a need to sell unless you believe its necessary for your portfolio. When the halving comes and goes, the market will fluctuate and will grow more volatile as many holders will be tempted to sell at a loss. The other side to this coin, though, is that after the halving has taken place, there will eventually be a rally that will lead to prices surging into the next phase of the bull market.

The reason as to why this is important is because after every halving, new all time highs by projects across the board are reached, whether its with alt coins, Bitcoin, Ethereum, etc.

What's different this time around is that there is a lot more institutional money's coming into the fray, which means we are about to see billions if not trillions of dollars begin to flood into the crypto space. Black Rock, Vanguard, J.P. Morgan and other such entities have already filed ETFs for Bitcoin and sure enough will file ETFs for Ethereum with the SEC. It would be no surprise to see not only fluctuations of these assets, but the assets representing the various networks supporting these currencies that will cause prices to skyrocket within the coming months. As for the short term, the markets will have to be watched for the signs that a surge will take place.

Since Bitcoin and Ethereum tend to follow each other more often than not, when they go up, Alt coins and many other projects will see gains in similar regard (some much higher than others). The narratives to also be on the lookout for would include, but not limiting to:

Real World Assets (RWA)

AI

Decentralized Finance (DeFi)

Gaming

Music

DePin

To name a few...

Now as for the time being, buying opportunities for assets that fall under these categories would be worth looking into for the long run, as Black Rock's Larry Fink has even been stating that they are looking into investing heavily into Real World Assets as they wish to "tokenize the world". In other words, everything in our lives like houses, cars, watches and even your shoes will be represented by a token on the blockchain.

Games that are being developed on the blockchain will begin to provide incentives to their players to own what they collect and earn from their games, if they haven't already. GALA Games is one such example.

Music artists will be incentivized to have more control over their records with platforms such as sound.xyz and Audius, and the benefits that they will bring.

Users that are within the DePin narrative will start leveraging their data, bandwidth and more as a means of earning rewards to various networks. NODL and GRASS are a few examples of this.

Utilizing Artificial Intelligence on the blockchain will also have its fair share of benefits. RING AI and the COSMOS ecosystem are also such examples.

As the web 3 ecosystem continues to expand and accrue wealth and interest from many, its best to be on the lookout for what could be the next big thing to either provide you with financial wealth and freedom, or the next tool that can aid you with your business as time goes on. Since this is a vast area to look into, SPARK Nation will do its best to bring you coverage over various narratives and topics of interest.

What ultimately needs to be stressed the most is this: when the Bitcoin Halving takes place, there is always some big changes that come with it, whether its newfound wealth, new narratives or new technologies that emerge because of it. And with the amount of speculation that's going around what the new All Time High for Bitcoin and Ethereum will be, there will also be new players that will enter the market to either capitalize, challenge, or ride the wave of the storm that is inevitably on the horizon.

Keep your eye out, and SPARK Nation will bring in anything noteworthy to share.