Crypto Halving

The world of cryptocurrency is a fascinating one. From blockchains to tokens to decentralization, these digital assets have revolutionized how we do business.

One of the most important events for crypto miners and traders is the halving events. It’s a phenomenon that occurs in all major cryptocurrencies, like Bitcoin, Litecoin, Ethereum, etc…

By understanding how these halving events work, crypto miners can better plan their mining activities, and traders can make better decisions about when to buy and sell.

Let’s dive into the world of crypto halving and understand what it is and how it works!

What is Halving Crypto?

Halving was first introduced in Bitcoin mining. The creator of Bitcoin, Satoshi Nakamoto, coded Bitcoin in a manner that after 210,000 blocks are mined, the block reward is cut in half.

Let’s take a look at some examples to understand halving better:

The first ever Bitcoin mining reward was distributed back in 2009. In 2009, miners received 50 BTC for every new block mined. The first halving event occurred 3 years later in 2012. This means 210,000 blocks were mined, and the block reward was cut in half to 25 BTC.

4 years later in 2016, the next halving event occurred and the reward was cut down to 12.5 BTC. Then it happened again in 2020 and the reward decreased to 6.25 BTC.

The next halving event is expected to take place in 2024, and the reward will be cut down to 3.125 BTC! This event will keep repeating until all 21 million Bitcoins have been mined, which is expected to happen by the year 2140.

What is The Point of Halving?

The simple answer is “The Law of Supply and Demand” – if Bitcoin’s supply was unlimited like fiat currencies, it would be worth much less.

We can compare it to Gold. Gold can’t be magically created like fiat currency, it has to be mined and there is a limited supply on Earth. This makes gold so valuable and its price steadily increases over time.

Halving works the same way for cryptocurrencies, it limits their supply and keeps their price stable.

How Does The Halving Procedure Affect The Subsequent Rate of Cryptocurrency?

When the block reward gets halved, it reduces the number of coins in circulation. This means there will be fewer coins left for trading. This could potentially lead to a price increase because of limited supply.

One of the major halving events just happened this month – we are talking about Litecoin halving on 2nd August 2023.

Let’s dive deep and understand how this event will affect the subsequent rate of Litecoin:

Litecoin, also known as the original altcoin was created back in 2011. Both Bitcoin and Litecoin have many similarities since they both use similar algorithms with a few minor differences.

However, they both go through halving events, and the most recent Litecoin halving happened on 2nd August 2023.

Similar to Bitcoin, Litecoin also cuts its reward in half after every 840,000 blocks mined, which approximately occurs every 4 years.

Litecoin paid 50 LTCs back in 2011 during its first halving and then it cut down to 25 LTCs after the second halving event in August 2015. Then again in August 2019, the reward was cut down to 12.5 LTCs.

The recent halving event on 2nd August 2023 cut down the Litecoin rewards to 6.25 LTCs per block mined! The next halving event is suspected to take place in 2027 when the reward will be cut down to 3.125 LTCs per block mined.

Is Halving Associated With The Onset of a Bull Cycle?

Cryptocurrencies are very unpredictable when it comes to price movement. Many factors affect crypto prices such as

  • News events
  • Technological advances
  • Government regulations
  • Public hype and trends
  • Market manipulation, etc…

However, no proof suggests that halving events have a direct influence on the onset of a bull cycle.

However, according to some experts, the year after a halving event could be considered a bull year for Bitcoin and other cryptocurrencies. This is mainly because during halving events the production of coins is reduced so the demand for crypto goes up.

Since the price of cryptos rises steadily, it can cause a bull market.

When to Wait For Bitcoin Halving and How it Will Change The Market?

The next Bitcoin halving is most likely to take place in 2024, which can disrupt the crypto market to some degree.

According to data received from the previous halving events, these events are generally seen as a positive thing for Bitcoin’s prices.

For example, after 150 days of every halving event, Bitcoin prices have increased. For example, in 2012, the price of Bitcoin on the halving day was $12.35. But after 150 days it reached $127.

Similarly, after the 2016 halving event, Bitcoin prices increased from $650.53 to $758,81 after 150 days! In 2020, the prices went up from $8,821.42 to $10,943 after 150 days.

How Will It Change The Market?

Here are some of the things that might happen after the 2024 Bitcoin halving event:

  • Increased demand for Bitcoin, which can lead to increased price of Bitcoin
  • More cryptocurrency traders and investors entering the market
  • Increased attention from mainstream media
  • The rewards will be cut down from 6.25 BTC to 3.125 BTC
  • Price volatility will increase
  • More trading activities because of the fewer Bitcoins will be left

Halving events can have a significant impact on the cryptocurrency markets. We can only guess how the market will respond to the upcoming halving event in 2024.

Conclusion

Halving is an important event for cryptocurrencies. It helps to keep their prices stable, increasing the value of these digital assets over time. By understanding how halving works, traders can make informed decisions and create successful strategies. It’s important to stay updated with the latest market news and events to make the most of these opportunities.

Is Bitcoin capable of regaining its peak?

Crypto investors have just gone through one of the most turbulent periods in the past few years. Specifically, digital assets saw their value exploding during the flourishing year of 2021, only to witness a sharp decline in prices the following year.

Bitcoin, the largest cryptocurrency by value, is no exception, experiencing dramatic rises and falls in this cycle. Now, with many thinking we’re in a prolonged crypto winter, let’s take a closer look at the current state of Bitcoin, and what it can reveal about the future of the cryptocurrency.

Bitcoin’s Historical Highs

The entire crypto community received a windfall from the Federal Reserve after the pandemic struck. As the Fed lowered interest rates and injected money into the economy, cryptocurrency greatly benefited from this stimulating policy, and investors constantly made speculative bets on the price of this volatile asset class.

As the saying goes, “A rising tide lifts all boats.” In this case, Bitcoin was the tide, and other coins and tokens were the boats. Bitcoin experienced a mind-boggling 1500% jump to reach $70,000 per coin in merely two years, propelling other cryptocurrencies to also achieve their historic apexes. This incredible ascend allowed Bitcoin to reach a high of $1.28 trillion in market cap, capturing nearly half of the crypto market share.

Bitcoin’s Current State in the Market

However, as the central bank hikes interest rates to curb rampant inflation, the crypto market has lost more than $2 trillion in market cap. As of July 19, Bitcoin has been bobbing around the $30,000 range for the last 30 days, well below its peak of $70,000 in 2021.

Moreover, other challenges embedded in the market might cause an extended crypto winter. For example, the implosion of the now-defunct FTX has worsened the trust and legitimacy in the crypto ecosystem. Leading crypto exchange Coinbase has been sued by the SEC for trading unregistered securities. And most notably, the giant crypto platform Binance also faces legal pressures from the SEC and is under investigation by French regulators.

But there are some positive things

However, despite these arduous hurdles and losing more than half of its value, Bitcoin still holds a special place in investor portfolios.

Bitcoin has surged 77% in price since the start of 2023, indicating investors’ continued conviction in the coin. This extraordinary movement came still in the face of elevated inflation, rising interest rates, falling consumer savings in the U.S., and regulatory pressures. Thanks to a shift to more bullish sentiment, analysts are already expecting an auspicious short-term future for Bitcoin.

Conditions Under Which a Strong New Surge is Possible

While Bitcoin might struggle to get back to its historic level in the short term, there are positive signs pointing to a brighter future for the coin.

Recently, there has been a growing buzz about a Bitcoin spot ETF. To give you a brief definition, a spot ETF (Exchange-Traded Fund) is a type of investment fund that tracks the price movements of a specific asset, commodity, or index in real-time. Hence, a Bitcoin spot ETF closely follows the price movement of the coin.

With a spot ETF, investors enjoy easier access to Bitcoin investment. Essentially, they can invest in the asset without worrying about the hassle of owning and storing the cryptocurrency. This has the potential to greatly push the coin’s demand and liquidity. Institutions will have an easier time convincing their clients to invest in an ETF, a more familiar investment vehicle to long-time investors as opposed to digital assets.  Another tailwind for crypto appeared in March with the collapses of the three largest U.S. regional banks. As the undoing of these banks sent turmoil across the financial market, investors turned to crypto as a storage for their money, a testament to the idea that crypto could be a replacement for the traditional banking system.

Why 2023 Is a Good Year for Cryptocurrency?

While Bitcoin and the crypto community faced tremendous downturns throughout last year, that trend is potentially poised for a reversal. Particularly because the inflation rate in the U.S. dropped to 3% in June, from the peak of 9% in 2022.

Inflation direction is what dictates the market movement right now. As inflation cools, the Fed is expected to begin reducing interest rates sometime next year. The market, however, is pricing in such prospect now, leading to a surge in both stocks and cryptocurrency. If the current momentum prevails, with the Fed successful in curbing price pressures, you can expect Bitcoin and the rest of the market to move higher.

A Reliable Place to Own Bitcoin

Amidst the price fluctuations of the crypto market, one thing remains constant: HiRiBi stands as the premier Bitcoin exchange service, offering high exchange rates, and swift and reliable transactions. As Bitcoin embarks on its potential return to its peak, there is no better platform than HiRiBi to maximize your profits. You can trust HiRiBi to provide you with a secure and efficient trading experience, ensuring you stay ahead in the world of cryptocurrencies.

What Influences Today’s Crypto Market the Most?

The market is no stranger to unpredictable price movements in the world of crypto. You can have the price swings up one day and down the next. As a relatively nascent technology and industry, the value of digital assets is understandably sensitive to various influencing factors, such as monetary policy from central banks, regulatory pressures, liquidity issues, and prices set by the force of supply and demand.

One might find it challenging to pin down the exact contributors to cryptocurrency value fluctuation; but in this article, we will look at some of the key drivers of crypto prices in recent weeks.   

Crypto Latest Performance

Generally, to gauge the performance of the digital asset class, market participants parse the price movements of the two largest cryptocurrencies in terms of market value – Bitcoin and Ethereum. And, as of June 20, Bitcoin and Ethereum have fallen approximately 10% and 14%, respectively, since their peaks in May.

While this kind of negative return is a run-of-the-mill phenomenon in the crypto sector, that would be considered a catastrophe for the conventional stock market if it changes that aggressively in such a short amount of time. For context, on average, the stock market only logs a 10% return on an annual basis.

Additionally, a confluence of adverse factors has contributed to such downturns for the past month or so. First, the crypto market jittered as the SEC handling down damaging lawsuits on Binance and Coinbase, two of the most prominent entities in the crypto space (more on this later).

Next, two crypto platforms, Delio and Haru Invest, halted investor withdrawals, triggered by a flood of worried depositors pulling their money out. And finally, USDT, the world’s largest stablecoin, just broke from its peg to the dollar.

These catalysts, among other reasons, have led to undesirable price movements in the industry. Especially, the standing litigation between the SEC and Binance and Coinbase could entail a pivotal movement for the crypto-verse.

SEC vs. Binance and Coinbase
 

Binance (the largest crypto exchange) and Coinabase (the second-largest crypto exchange) have been the face of crypto communities for quite some time. They are the leaders in the field, and every move they make will have influential implications for the whole industry.

Well, recently Binance and Coinbase have been on a colliding path with the Securities and Exchange Commission (SEC). The SEC has sued Binance and its CEO Changpeng Zhao on allegations that the company commingled billions of user funds and subverted the SEC’s purview by allowing clients to trade on their unregulated exchange.

Similarly, the SEC sued Coinbase on the ground that the company operates as an unregistered national securities exchange and broker. But more importantly, in what will likely cause a shockwave across the industry, the SEC listed a number of cryptocurrencies as securities in the lawsuit.

These contemporary events have negatively affected digital coin value, with the question revolving around “Is a token a security?” especially consequential. Being categorized as a security will subject crypto to more stringent regulation and oversight by lawmakers. However, though that is true, digital asset advocates would also argue that a clearer regulatory framework also enables crypto to thrive and be embedded in the global financial system.

Monetary Policy from the Central Bank

Much as crypto enthusiasts like to distance themselves far away from the traditional finance system, the two are still intertwined. The most notable example is the Federal Reserve’s ongoing interest rate-hiking campaign against rampant inflation.

Since the Fed began raising rates in early 2022, both the crypto and stock markets have seen their price and valuation tumbling. The reason? As rates go up, consumers and businesses will face a higher borrowing cost. At the same time, they will enjoy a higher return holding cash, such as in a money market account. As a result, investors were in a risk-averse mode, giving cryptocurrency, as well as the stock market, the cold shoulder.

HiRiBi – a Best-in-Class Crypto Exchange

Despite facing challenging market conditions, the HiRiBi service remains resilient, steadfast, and unwavering in its commitment to providing clients with the most favourable rates for cryptocurrency exchange.

Even in the face of adversity, HiRiBi perseveres, ensuring that its customers receive optimal value and benefits. The service refuses to be deterred by market fluctuations or hardships, consistently delivering exceptional results. HiRiBi’s unwavering stability and reliability make it a trusted platform for clients seeking the best rates in the ever-evolving world of crypto exchange, solidifying its position as a leader in the industry.

10 Facts about Crypto

Cryptocurrency has taken the world by storm in recent years, captivating the attention of investors, technology enthusiasts, and the general public alike. This digital form of currency, created and managed using cryptographic techniques, has revolutionized the way we perceive and transact value. In this article, we delve into the top 10 fascinating facts about cryptocurrencies, shedding light on their history, implications, and future prospects.

1. The Mysterious Satoshi Nakamoto

At the heart of the cryptocurrency revolution stands Satoshi Nakamoto, the pseudonymous creator of Bitcoin. While the true identity of Nakamoto remains shrouded in mystery, his invention of Bitcoin in 2008 set the stage for the birth of cryptocurrencies as we know them today. Speculation about Nakamoto’s true identity has sparked numerous theories and debates, adding an air of intrigue to the world of crypto.

2. The First-Ever Transaction

On May 22, 2010, a historic event took place in the cryptocurrency world. Laszlo Hanyecz made the first recorded transaction using Bitcoin, purchasing two pizzas for 10,000 Bitcoins. Yes, you heard that right. This event, now known as “Bitcoin Pizza Day,” highlights the more whimsical period for nascent technology. As of May 27, those two pizzas would be worth approximately $270,000,000 in today’s Bitcoin value!

3. The Emergence of Crypto Art

Crypto art has revolutionized the art world by creating digital artworks that are tokenized and traded on blockchain platforms. This innovative fusion of art and technology provides verifiable ownership and addresses issues of authenticity, opening up new avenues of expression for artists globally.

4. Cryptocurrency Mining

Cryptocurrency mining is a vital process in the creation and maintenance of many cryptocurrencies, including Bitcoin. Different from the conventional shovels and pickaxes, crypto miners utilize powerful computers to solve complex mathematical problems, verifying transactions and adding them to the blockchain—a decentralized ledger that records all transactions. Miners are then rewarded with newly minted coins for their efforts, as well as contributing to the security and stability of the network.

5. Anonymity vs Pseudonymity

Contrary to popular belief, cryptocurrencies do not offer complete anonymity. Instead, they provide pseudonymity, where transactions are recorded on the blockchain using crypto wallet addresses rather than personal information – picturing someone wearing a mask, while you can still see the person, you don’t know their true identity. Therefore, although this offers a certain degree of privacy, it is not entirely anonymous, as the transactions can still be traced back to their respective digital wallet.

6. The Dark Web and Crypto

Cryptocurrencies have often been associated with the dark web, an enigmatic abyss hidden behind your regular internet realms that is also notorious for illegal activities. Criminals have exploited the decentralized nature of cryptocurrencies to facilitate illicit transactions, as everyone is wearing a digital mask concealing themselves from detection. However, it is important to note that the vast majority of cryptocurrency users engage in legitimate activities, and blockchain technology itself holds immense potential for transparency and security.

7. Initial Coin Offerings (ICOs)

While the popular world of Wall Street has Initial Public Offerings (IPO), Initial Coin Offerings (ICOs) emerged as a popular fundraising method in the cryptocurrency market. Similar to IPOs, ICOs allowed companies to raise capital, but by issuing and selling their own digital tokens instead. Despite ICOs experiencing a boom in popularity, they also faced challenges, such as regulatory concerns and fraudulent projects, resulting in increased scrutiny and a decline in their prevalence.

8. The Volatility of Cryptocurrencies

You could say extreme volatility is a hallmark of cryptocurrencies – some traders might even say it’s a feature. Particularly, during the period of the crypto frenzy, Bitcoin’s value had a spectacular run in 2021, skyrocketing 60% in price. Only to, however, plummeted 64% the next year, according to Bankrate. The fluctuations in crypto prices are typically influenced by factors such as market demand, regulatory decisions, and investor sentiment. This volatility poses risks and challenges for investors but also offers opportunities for substantial returns.

9. Blockchain Technology Beyond Cryptocurrencies

Blockchain technology, the underlying technology and bedrock behind cryptocurrencies, has far-reaching applications beyond the realm of digital currencies. Its decentralized, transparent, and immutable nature makes it suitable for various use cases such as financial transactions, voting systems, identity verification, and smart contracts. Blockchain has the potential to revolutionize industries by enhancing efficiency, security, and trust in every aspect.

10.  The Future of Cryptocurrencies

Looking ahead, the future of cryptocurrencies holds both excitement and uncertainty. As technology continues to evolve, emerging trends such as decentralized finance (DeFi), non-fungible tokens (NFTs), and central bank digital currencies (CBDCs) are gaining momentum. While cryptocurrencies face challenges related to regulation, scalability, and environmental impact, their capability to reshape the finance industry, promote financial inclusion, and disrupt various traditional systems cannot be ignored.

Crypto in Africa

Despite the cryptocurrency market rout throughout 2022, the digital asset class still gains significant traction across the globe and holds great potential to disrupt the traditional financial system. Among the regions most eager to join the bandwagon is Africa. Because of the continent’s underdeveloped financial service infrastructures and a large number of unbanked individuals, the region is pushing to a great extent the adoption of cryptocurrency.

The most crypto-active countries in Africa

The followings are some of the countries that are most involved in the crypto market:

Nigeria

Nigeria has witnessed a surge in cryptocurrency adoption and trading, making it a leading country in this space. It boasts a vibrant crypto community, innovative blockchain startups, and a supportive regulatory environment. According to Triple-A, the nation celebrates more than 10 Nigerians using crypto as of 2022. Nigeria is also the number one country across the globe that searches the most for “Bitcoin” and “Crypto” keywords on Google.

Kenya

Kenya has embraced cryptocurrencies, and its citizens are actively involved in digital asset trading. The country is estimated to have 4.5 million Kenyans owning digital coins. The country has a forward-thinking regulatory approach, which has fostered crypto innovation. As a result, Kenya is at the forefront of blockchain-related transactions, as well as hosts a superior market in terms of trading volume on peer-to-peer platforms.

South Africa

Although South Africa ranks third on the list, the country still stands out as one of the most developed names in Africa concerning cryptocurrencies, with more than 4.2 million individuals owning crypto. It has a thriving crypto ecosystem, with a growing number of individuals and businesses adopting digital currencies. In fact, 17% of South Africans used or owned at least one form of digital assets as a replacement to banks, primarily due to higher yields, according to Triple-A.

Egypt

The popularity of Bitcoin in Egypt has witnessed a significant increase, with more than 1.7 million Egyptians investing over 50% of their wealth in Bitcoin and other cryptocurrencies. This is due to Egyptian crypto traders seeking alternative income sources, either through trading or holding Bitcoin. The devaluation of the country’s fiat currency has further fueled this trend, leading to the expectation of a growing number of Egyptian crypto users.

Ways to transact with crypto in Africa

The process of buying, selling, and trading tokens in Africa is similar to any other region that allows such activity. First, you select a reputable cryptocurrency exchange that supports your desired digital currencies. Create an account and complete the necessary verification process, and deposit funds into your exchange account through various payment methods (bank transfers, mobile money, or debit/credit cards). Finally, execute the trade, and when you decide to withdraw funds, you can sell your cryptocurrencies on the exchange and transfer the proceeds to your bank account. Here are some of the most trustworthy crypto exchanges in Africa:

  • Coinbase: Coinbase is arguably among the most well-known brand in the crypto space, even among non-crypto users. The company is based in the U.S. and provides a simple and user-friendly interface. Coinbase supports various coins and offers different payment methods, such as bank transfers, PayPal, and credit and debit cards.
  • Luno: Luno is a crypto exchange that is popular in Africa. The platform enables trades for a number of prominent tokens, including Bitcoin, Ethereum, XRP, and Litecoin. While the exchange’s headquarter is located in London, Luno still has offices in South Africa, Nigeria, Ghana, and Kenya.
  • NairaEx: NairaEx, a Nigerian exchange, provides trading services for cryptocurrencies like Bitcoin, Ethereum, Litecoin, and more. Established in 2016, the company offers a user-friendly platform and has gained significant popularity, making it one of the most favoured exchanges in Africa. NairaEx also offers a mobile application compatible with Android and iOS devices for convenient access to their services.
  • Binance: Binance, a worldwide cryptocurrency exchange, facilitates the trading of a wide range of cryptocurrencies. Although its headquarters are located in Malta, Binance has established offices across the globe, including Kenya. For user convenience, Binance also provides a mobile application compatible with IOS and Android devices.

The Role of M-PESA in the crypto market

M-Pesa is a mobile banking service that enables users to store and transfer funds using their mobile devices. It was introduced in Kenya as an innovative solution to provide financial services to the country’s population. Safaricom, the leading mobile phone operator in Kenya, launched M-Pesa in 2007, offering a convenient and accessible platform for financial transactions.

While M-PESA does not directly support cryptocurrencies, it has indirectly facilitated their adoption by providing a convenient platform for fiat-to-crypto transactions. Users can convert their M-PESA balances to cryptocurrencies through peer-to-peer exchanges or utilize mobile money transfer services that integrate with crypto platforms. M-PESA’s accessibility and widespread usage have contributed to the growth of crypto trading in Kenya.

Crypto’s future outlook in Africa

Africa presents immense opportunities for the development of the crypto industry. The continent’s large unbanked population, limited access to traditional financial services, and high mobile phone penetration make it an ideal environment for cryptocurrency adoption.

Additionally, blockchain technology can help address various socio-economic challenges, such as identity management, remittances, and supply chain transparency. However, regulatory frameworks, investor education, and infrastructure development are critical for unlocking Africa’s full potential in the crypto space.

Join the crypto movement with HiRiBi

Regardless of your place of residence, HiRiBi stands as a reliable solution for exchanging cryptocurrencies. With its user-friendly platform, advanced security measures, and a broad selection of supported digital assets, HiRiBi offers a promising alternative for individuals looking to buy or sell crypto. Whether you possess considerable trading experience or are a newcomer to the crypto world, HiRiBi provides a secure and convenient platform. Backed by its robust security protocols and dedication to customer satisfaction, HiRiBi is poised to establish itself as a leading player in the cryptocurrency exchange market.