One of the core features of Bitcoin is its programmed monetary policy, where every 210,000 Bitcoin blocks (approximately every four years), a phenomenon known as "halving" occurs. In April of this year, Bitcoin will experience its fourth halving event, reducing the reward for newly mined blocks from 6.25 bitcoins to 3.125 bitcoins. This is a pivotal event in Bitcoin's history and a significant milestone on the path to the ultimate supply of 21 million bitcoins.Although halving events are predictable, their impact is substantial. With the occurrence of a halving event, the total income for miners is halved, directly affecting their profitability. Miners with higher operating costs or lower efficiency may face greater challenges, potentially leading to adjustments and consolidations within the industry.Similar to past halving events, discussions will likely arise again regarding the impact of halving on the supply-demand dynamics of Bitcoin and whether the reduction in issuance has already been "priced in." Some view Bitcoin halving as an inherent and well-understood aspect of the protocol, particularly with the increasing involvement of professional institutions in Bitcoin research. On the other hand, others interpret Bitcoin halving from a liquidity perspective, anticipating a decrease in sales for miners (natural sellers of Bitcoin) after halving. They also believe that halving can strengthen Bitcoin's monetary properties, making it a reliable store of value and a hedge against inflation, attracting more individuals to perceive it as a dependable store of value.Throughout 2024, the market may experience the impact of halving-related sentiments, especially in discussions focusing on miner profitability. However, this halving event aligns with another crucial moment in Bitcoin's history—the listing of spot ETFs in the United States. While future outcomes may not necessarily replicate the past, Bitcoin's history is closely intertwined with its four-year halving events. This new era holds significant importance as well.
