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During Bitcoin mining, the reduction in mining rewards is hard-coded into the Bitcoin protocol and serves two main purposes: to control the supply of new Bitcoins entering circulation and to combat inflation.

Bitcoin halving is considered one of the most significant events in cryptocurrency evolution. It involves reducing the rewards awarded to miners who play a vital role in securing the network.

As we approach the upcoming Bitcoin halving, expected in April or May 2024, it is essential to comprehend the event's profound implications. This article seeks to answer the fundamental question: What is Bitcoin halving, and how it works?

Understanding Bitcoin's underlying technology is crucial before diving into its mechanics. Bitcoin's blockchain is a complex network of computers called nodes. These nodes collectively run Bitcoin's software and maintain a comprehensive ledger of all historical transactions within the network.

Transactions within the Bitcoin network undergo a rigorous validation process. Instead of being verified individually, transactions are grouped into blocks. Only when an entire block is validated are the transactions within it considered confirmed. As these transactions are validated, they become permanent additions to the blockchain, distributed among all nodes.

However, more participating computers or nodes are added to enhance the blockchain's stability and security. While anyone with sufficient storage can become a node by downloading the entire blockchain history, not all nodes are miners.

Now lets understand about Bitcoin halving and how it works.

The Bitcoin halving is a pivotal event in the ever-changing world of cryptocurrencies, occurring approximately every four years. This event, encoded into Bitcoin's very DNA, involves the halving of rewards for Bitcoin mining.

The fundamental purpose of Bitcoin halving is to combat inflation by preserving the cryptocurrency's inherent scarcity. In theory, the reduction in the rate of Bitcoin issuance is expected to lead to price appreciation, provided that demand remains constant.

At present, Bitcoin maintains an inflation rate of less than 2%, a figure that is set to further decrease with future halvings. Comparatively, in the US, the inflation rate for 2022 was 8%.

But how does this mechanism operate, and why does Bitcoin halving matter?

It is essential to understand Bitcoin mining in order to understand Bitcoin halving. Miners are pivotal participants who compete to add new blocks to the Bitcoin blockchain.

In order to achieve this, specialized hardware solves intricate mathematical problems, generating a unique 64-character output called a "hash." Once the block is sealed, it becomes immutable and cannot be altered. As a reward for their efforts, miners are compensated with Bitcoin.

So, how exactly does the Bitcoin halving cycle function? The reward for successfully mining a block was 50 BTC at the time of Bitcoin's inception. Incentives like these were instrumental in motivating early users to join the network, even before its widespread success.

However, Bitcoin's design incorporated a deliberate reduction in the rate of new Bitcoin creation, precisely halving it for every 210,000 blocks mined. This equates to approximately every four years.

According to historical Bitcoin halving dates, the last three halvings occurred in 2012, 2016, and 2020. The inaugural Bitcoin halving occurred in 2012, marking the reduction of mining block rewards from 50 to 25 BTC. Subsequent to this, the 2016 halving event further reduced incentives to 12.5 BTC for each block mined. As of May 11, 2020, every newly mined block generates a mere 6.25 new BTC.

Anticipated in April 2024, the next Bitcoin halving will persist until roughly 2140, coinciding with the point at which all Bitcoin will have been mined.

But why does Bitcoin halving hold such pivotal significance? There are two primary reasons:

1. Scarcity and Controlled Supply: Bitcoin's creator, Satoshi Nakamoto, envisioned a digital currency with constrained and managed supply. Halving the mining rewards by half effectively diminishes the rate at which new Bitcoin is brought into existence. With escalating scarcity over time, Bitcoin becomes a deflationary asset in the long run.

2. Inflation Control: Bitcoin halving plays an instrumental role in curbing excessive inflation within the Bitcoin ecosystem. By reducing the block reward, the process restricts the rate at which new Bitcoin enters the market. Controlled issuance maintains the long-term value and stability of the coin.

Are you wondering why this Bitcoin halving represents a bullish trend in the crypto world? Let's find out.

Market participants have consistently responded to halving events with fervent buying. The decrease in the inflation rate intensifies the pressure of demand, propelling Bitcoin's price upward.

Interestingly, this phenomenon extends beyond Bitcoin, as other cryptocurrencies have experienced substantial gains during these periods, underlining the broader market's recognition of the bullish potential unlocked by Bitcoin halving.

Now, let's delve into the historical perspective by examining the price movements during each Bitcoin halving cycle:

First Halving Cycle (November 2012 - July 2016):

Second Halving Cycle (July 2016 - May 2020):

Third Halving Cycle (May 2020 - April 2024):

As we can see, halving events have historically correlated with Bitcoin's price surges. The anticipation of reduced supply and increased demand often generates positive market sentiment and potential price appreciation.

It is imperative, though, to bear in mind that past performance does not guarantee future results, and various factors beyond halving events contribute to Bitcoin's price dynamics.

As the pioneer and largest cryptocurrency, Bitcoin's price predictions garner substantial attention from experts and enthusiasts alike as the halving approaches. Lets delve into some of the diverse perspectives offered by prominent figures in the crypto space.

BitQuant, a renowned social media commentator, has set an ambitious target for Bitcoin's price. According to this prediction, Bitcoin is expected to reach $250,000 after its next block subsidy halving.

No, #Bitcoin is not going to top before the halving. Yes, it's going to reach a new all-time high before the halving. No, #BTC is not going to $160K because the magnitude of every pullback is large. This means it will peak after the halving, in 2024. And yes, the target price is pic.twitter.com/TRcEB4DFpF

Bitcoin investor and author Jesse Myers offers a more conservative outlook. Myers posits that Bitcoin will only breach the six-figure mark after its 2024 block subsidy halving. As a result, he believes that significant price movements might occur after this key milestone, as the market needs to fully "price in" the effects of the halving.

#Bitcoin won't surge to $100k before the next halving...

Because the Efficient Market Hypothesis (EMH) is wrong.

Instead, the market will price-in the changed reality over the 12-18 months post-halving.

Marshall Beard, the chief strategy officer at crypto exchange Gemini, shared his optimism about Bitcoin's price trajectory. He believes that Bitcoin has the potential to surpass its all-time highs in the current year. In particular, he mentions the $100,000 figure, suggesting Bitcoin could achieve this milestone if it reaches its previous record high of nearly $69,000.

Paolo Ardoino, the chief technology officer at Tether, echoes this positive sentiment. He suggests that Bitcoin could "retest" its all-time high of around $69,000, signaling potential for price appreciation.

Standard Chartered, a prominent British multinational bank, has recently revised its prediction for Bitcoin's price. In one of its research reports, the bank anticipates Bitcoin's price to range between $100,000 to $120,000 by the end of 2024.

This upward revision is attributed to the bank's belief in increased profitability for Bitcoin miners. Additionally, the bank forecasts Bitcoin to reach $50,000 by the end of the current year.

Samson Mow, a Chinese-Canadian Bitcoin entrepreneur and CEO of crypto firm JAN3, envisions an even more remarkable future for Bitcoin. He firmly believes that Bitcoin will surge to an astonishing $1 million within the next five years.

On the other hand, Balaji Srinivasan, an investor and former technology chief at Coinbase, has taken a daring bet on Bitcoin's price. He also speculates that Bitcoin could reach $1 million or more in the coming days.

The phenomenon of Bitcoin halving is far from a mere technical adjustment; it carries significant economic implications for Bitcoin miners and the broader cryptocurrency market. As the block reward is halved, miners are compelled to reconfigure their operations to maintain profitability. This intensified competition, however, leads less efficient miners to exit the scene, which can have far-reaching effects on security.

Crypto experts acknowledge the current economic landscape characterized by rising hikes and tighter monetary policies, factors that might not facilitate an immediate, sharp rebound for Bitcoin.

While some foresee Bitcoin reaching unprecedented heights, others adopt a more cautious approach. This diversity of perspectives adds to the intrigue surrounding Bitcoin's price trajectory, making investors and enthusiasts eager to see what comes next.

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What is the Bitcoin Halving and Why Does it Matter? - BSC NEWS

Bitcoin's price has seen a notable increase in the past week. The rise has been driven in some part by a dynamic between short and long-term bitcoin holders, according to an analyst.

Bitcoin (BTC-USD) has risen by 4.5% in the past week, now changing hands at $27,602, (22,771) according to CoinGecko data.

This is a retrace from a height of $28,500, that was reached on Monday. The early October high marked a significant price point that has not been reached since August 17, 2023.

Read more: Crypto live prices

"Bitcoin now finds itself in a technical range, confined between the resistance level of $28,500 and the support level of $27,100," CryptoQuant analyst Adam Mourad told Yahoo Finance UK.

The analyst explained the underlying factors that could be at play. Mourad described a market dynamic that has developed between short and long-term bitcoin holders. He referred to on-chain metrics that demonstrated long-term holders acquiring the digital assets that are being sold by short-term holders.

"The supply held by short-term holders has dipped to its lowest point in nearly eight years, a level not seen since November 2015, with a value of 3.8 million bitcoins," the analyst said.

Conversely, the CryptoQuant analyst referred to on-chain data that showed the supply of bitcoin held by long-term holders has reached an all-time high, standing at 15.6 million bitcoins.

He added that long-term holders have a deeper belief in the asset and will hold and accumulate the asset. A dynamic that favours price appreciation.

Long-term holders of bitcoin wait in hopeful anticipation that an approval of a spot bitcoin ETF by US regulators is forthcoming. A spot bitcoin ETF is a financial product that investors hope will open the gateway for mainstream capital to flood the crypto market.

At a conference in London this week, former BlackRock (BLK) managing director Steven Schoenfield said he believed the SEC could approve a spot bitcoin ETF within 3-6 months based on mounting regulatory pressure. This relatively short timeframe marks a shift in Schoenfields outlook. He had previously projected a longer nine to twelve months window.

Read more: Institutional investment brings new momentum to crypto

During a panel discussion on ETFs at CCDatas Digital Asset Summit in London, Schoenfield explained his updated forecast is based on a view that there has been a significant improvement in the dialogue between the Securities and Exchange Commission (SEC) and financial industry figures. The SEC is the US financial regulator that will make the decision whether to approve the multiple spot bitcoin ETF filings that have been filed.

Watch: Crypto bosses pouring millions into anti-aging tech to live longer | The Crypto Mile

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Bitcoin price rally driven by key market dynamic, analyst - Yahoo! Voices

The crypto community is buzzing with excitement as October unfolds, heralding the arrival of what many in the digital asset space call Uptober. For years, this month has gained a reputation for fostering positive price momentum for Bitcoin and the broader cryptocurrency market. The resurgence of Uptober has once again ignited hopes and speculations about what lies ahead for the crypto market.

Beyond the immediate implications for Bitcoin, many investors question how this bullish momentum might spill over to other cryptocurrencies, especially XRP, Cardano (ADA), and InQubeta (QUBE).

Drawing parallels to BTCs uptrend, InQubetas approach to crowdfunding has drawn attention from the crypto community, leading to its rapid ascent on the decentralized finance (defi) crypto list.

This article delves into Uptobers significance and explores its potential effects on these top digital assets.

InQubetadistinguishes itself from conventional cryptocurrency ventures by focusing on the artificial intelligence (AI) sector in a tech-driven era.

InQubeta introduces a non-fungible token (NFT) marketplace rooted in equity and powered by blockchain technology and smart contracts.

By engaging in this presale, acquiring QUBE means aligning with the AI revolution and potentially reaping the rewards.

InQubeta employs a unique token vesting approach, gradually releasing tokens over 12 weeks, promoting stability and investor trust.

As Bitcoin enters the bullish month of Uptober, with October historically favoring cryptocurrencies, InQubeta aligns with the trend.

This presale, spanning ten stages, has sold nearly 381 million tokens, amassing over $3.4 million in stage 4.

With the QUBE tokens current value at $0.0133 and its positioning on the defi crypto list, experts foresee InQubeta mirroring BTCs rally.

To join InQubetas presale, investors can acquire QUBE using Ethereum (ETH), BTC, or USDT.

After the presale, buyers will receive airdropped tokens, including attractive bonus tokens.

Uptober, a term coined by the crypto community, signifies the historical bullish trend that often sweeps across Bitcoin and other cryptocurrencies in October. Historical data since 2013 shows October as predominantly positive for Bitcoin, with just two exceptions.

On Oct. 1, Bitcoins price soared past $28,000, marking its highest level since mid-August. This surge, propelling BTC to nearly $28,500 and recording a 4% increase in under 24 hours, rekindles hopes of a sustained uptrend.

This bullish BTC sentiment is rippling across the crypto space, boosting market sentiment for coins like XRP, ADA, and QUBE. As Bitcoin takes the lead, these top defi coins, renowned for innovation, could gain more investor attention, potentially fueling a broader crypto market uptrend in Uptober.

Ripple, a blockchain company, enables fast and cost-effective international money transfers. XRP is a bridge between different fiat currencies, making cross-border transactions swift and efficient. Ripples vision is to revolutionize global financial transactions, making value move as seamlessly as information.

XRP has shown signs of a potential breakout in recent market developments. On-chain transaction volume in profit, as shown by the data from Santiment, reached 3.48 billion XRP on Oct. 1. XRP has not witnessed such profit-taking levels since February 2021, suggesting that the coin may be on the brink of a significant price move.

Cardano is a blockchain platform known for its emphasis on sustainability, scalability, and a research-based approach to development.

Recently, ADA broke above a descending triangle pattern. This formation signals a potential bullish trend reversal that may support prices in the sessions ahead.

Following the breakout, ADA rallied, increasing investors optimism.

Cardanos bullish performance aligns with the prevailing sentiment of optimism this Uptober, suggesting that it might capitalize on improving market sentiment.

Uptober expectations may support Bitcoin and could improve market sentiment. Conversely, XRP, ADA, and QUBE are following suit, gaining momentum and increasing investor interest. InQubeta can be a go-to choice for seasoned investors searching for opportunities in the AI sector in the ongoing QUBE presale.

Visit InQubeta presale

Join the InQubeta communities

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Bitcoin's 'Uptober': possible impact on XRP, Cardano, and InQubeta - crypto.news

Bitcoin minted a profit of 0.91 percent on Thursday, October 5 to trade at the price point of $27,680 (roughly Rs. 23 lakh). This marks the third consecutive day that Bitcoin is trading in the range of $27,000 (roughly Rs. 22.4 lakh). Over the last day, Bitcoin has shown a substantial rise in its value. The asset, that was priced $27,403 (roughly Rs. 22.8 lakhs) yesterday, rose by $277 (roughly Rs. 23,050). As per market experts, October is expected to bring market consolidation and sideways movement, providing opportunities for long-term investors.

Bitcoin's gain follows a market calm-down after Monday's sharp rally, easing traditional market headwinds, Rajagopal Menon, Vice President, WazirX told Gadgets 360.

Ether joined Bitcoin on the profit-side of the crypto chart on Thursday. ETH is presently trading at $1,643 (roughly Rs. 1.36 lakh) after seeing a miniscule gain of 0.8 percent. In the last 24 hours, ETH rose in price by $3 (roughly Rs. 250).

Other cryptocurrencies that registered gains today include Binance Coin, Cardano, Dogecoin, Polygon, Litecoin, and Shiba Inu.

Small profits were also churned by Chainlink, Avalanche, Monero, Cronos, Bitcoin SV, and Elrond.

Avalanche's AVAX, a Layer 1 blockchain, has been a top performer in CoinDCX among major cryptocurrencies, with an impressive eight percent surge in the last 24 hours, the CoinDCX research team told Gadgets 360. This rally in AVAX price comes due to the gaining popularity of its social app Stars Arena, which is a direct competitor of the very popular base chain app Friend.tech.

The overall valuation of the crypto market rose by 0.74 percent in the last 24 hours to sit on the mark of $1.09 trillion (roughly Rs. 90,73,323 crore), as per CoinMarketCap.

A notable number of cryptocurrencies did see losses today. These include Tether, Ripple, USD Coin, Solana, Tron, Polkadot, and Bitcoin Cash.

Industry experts are optimistic that newer developments and upcoming Web3 developments will keep the sector hot and running.

A special focus yesterday remained on the exit of Jayanti Kanani from Polygon, popularly known as JD, the co-founder of India-based layer-2 MATIC (+0.4 percent). According to his post on x.com, Jayanti has embarked on a new journey, which could mean a new venture he might be starting. The overall crypto market seems to be calming down after Monday's sharp rally, Shubham Hudda, Senior Manager, CoinSwitch Markets Desk told Gadgets 360.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Crypto Price Today: Bitcoin and Ether See Profits, Losses Hit Altcoins Like Solana, Tron - Gadgets 360

Proponents of Bitcoin (BTC) argue that its decentralized nature offers protection against threats encountered by traditional financial systems. Nevertheless, like any other financial or investment product, Bitcoin is not immune to various threats that could potentially affect its existence.

In this context, Finbold sought insights from the artificial intelligence platform ChatGPT developed by OpenAI to understand the factors that could potentially bring about the end of Bitcoin as we know it. We posed the question, What can end Bitcoin as we know it? to the most advanced ChatGPT-4 premium AI version. Through this analysis, it became apparent that the pioneering cryptocurrency faces a spectrum of challenges, both external and internal, which are highlighted below:

The tool suggested that one of the most discussed vulnerabilities is the dreaded 51% attack. If a single entity gains control of over 50% of the Bitcoin networks computational power, it could potentially wreak havoc. Such an entity could double-spend coins or halt transactions. ChatGPT acknowledged that although this type of attack is expensive and unlikely to be financially practical, stating that at the moment, it remains a theoretical threat.

Another technical vulnerability is quantum computing. ChatGPT states that if quantum computers become powerful enough, they could break Bitcoins cryptographic security measures. It is worth noting that the crypto community has since identified this risk with plans to quell it.

Bitcoins decentralized nature has made it an attractive option for those looking to circumvent traditional financial systems. However, this very characteristic puts it in the crosshairs of governments worldwide. As per ChatGPT, regulatory crackdowns and bans on Bitcoin could significantly impact its adoption and drive users toward other digital assets or traditional currencies. In general, regulatory uncertainty is a constant shadow that the cryptocurrency world must navigate, making it a persistent concern for the future of Bitcoin.

Bitcoins value and adoption have been intricately tied to economic factors for years. Therefore, ChatGPT pointed out that a significant loss of confidence in Bitcoin due to major financial losses, large-scale fraud, or other scandals could lead to reduced adoption and value. At the same time, it cited threats such as a newer cryptocurrency or technology emerging with vastly superior features, which might overshadow Bitcoins first-mover advantage.

The viability of Bitcoin has been questioned over the cryptocurrencys Proof-of-Work (PoW) consensus. Against this backdrop, the AI tool pointed out that critics argue that its energy consumption is unsustainable and harmful to the planet. Therefore, if concerns about its energy consumption continue to grow, there may be a substantial shift towards more eco-friendly cryptocurrencies or consensus mechanisms, potentially eroding Bitcoins dominance. As the world becomes increasingly conscious of environmental issues, Bitcoins environmental footprint remains a point of contention. However, it is worth noting that major miners are trying to turn to renewable energy sources for Bitcoin mining.

ChatGPT acknowledged that Bitcoin has faced persistent challenges in terms of transaction speed and costs, especially during heightened demand. While initiatives such as the Lightning Network have been introduced to tackle these issues, the risk of an inadequate scaling solution could potentially hinder Bitcoins ability to achieve wider adoption. The ongoing challenge of scaling is a critical issue that the Bitcoin community must continue to tackle to uphold its status as a viable digital currency.

Internal disputes within the Bitcoin community have sporadically arisen, particularly concerning its development trajectory. ChatGPT warns that should these disagreements escalate, they have the potential to result in additional forks, similar to the Bitcoin Cash (BCH) split, which could ultimately erode the communitys cohesion. The tool notes that sustaining a unified vision for Bitcoins future is imperative for its enduring success in the long run.

The AI tool suggests that the Bitcoin network is not immune to global disruptions. Natural disasters, widespread infrastructure failures, or global-scale cyber-attacks could disrupt the Bitcoin network, causing temporary or long-term damage. The resilience of the Bitcoin network in the face of unforeseen events remains an ongoing concern.

Governments such as the United States and China are actively exploring the potential of digital currencies, which could lead to the introduction of Central Bank Digital Currencies (CBDCs) as potential substitutes for cryptocurrencies. In this case, ChatGPT opines that if prominent nations successfully deploy and endorse their CBDCs, these could present a more secure and regulated option compared to Bitcoin for everyday transactions, potentially diminishing Bitcoins attractiveness. The advent of CBDCs poses a notable competitive challenge to Bitcoin.

It is worth noting that the cryptocurrency ecosystem relies heavily on exchanges and wallet providers. Therefore, ChatGPT suggested that if a major exchange or wallet provider collapses or faces severe security issues, it could undermine confidence in the broader cryptocurrency ecosystem and impact Bitcoin. Therefore, safeguarding the infrastructure of the cryptocurrency world is essential to maintaining trust and stability.

In conclusion, while Bitcoin has withstood numerous challenges and has a resilient community of users and developers, it remains vulnerable to various internal and external factors. Staying abreast of these potential threats and actively addressing them will be crucial for the continued success and relevance of Bitcoin as a global digital currency.

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ChatGPT breaks down 9 factors that can end Bitcoin as we know it - Finbold - Finance in Bold