Bitcoin Halving: Profit from the shortage with CFDs

Bitcoin is probably the best-known cryptocurrency. On the one hand, Bitcoin has made investors multi-millionaires and on the other hand, it has led to financial ruin, which of course has led to great popularity in the media. Of course, these extremes don’t always occur, especially if you act smart.

For some time, the media surrounding Bitcoin was quite quiet. That could soon change and attract new investors and traders again. A so-called Bitcoin Halving is imminent, which could shake up the Bitcoin market. Being able to trade smart could therefore become even more important.

1. What is Bitcoin Halving?
2. When will the new Bitcoin Halving take place?
3. Why is there Bitcoin Halving?
4. What impact will the Bitcoin Halving have?

5. Trade CFDs smartly and easily with eToro

What is Bitcoin Halving?

During Bitcoin Halving, the number of new Bitcoins that are mined is halved. The number of Bitcoin per block will fall from 6.25 to 3.125 in 2024. In other words, for the same mining effort, only half as many Bitcoin are distributed as before. Increased demand and reduced availability could mean a renewed upswing.

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When will the new Bitcoin Halving take place?

The Bitcoin Halving in 2024 will probably occur around April 21st, when a block height of 840,000 is reached. A Bitcoin halving occurs approximately every four years and after the creation of 210,000 new Bitcoin blocks.

This makes the upcoming halving the fourth since the introduction of Bitcoin. There were previously halvings in 2012, 2016 and 2020. The number of Bitcoin per block was first halved from 50 to 25, then to 12.5 and 6.25.

Why is there Bitcoin Halving?

Together with the maximum number of 21 million Bitcoin that can ever exist, the Bitcoin Halving means that Bitcoin represents a scarce, clearly limited and inflation-resistant resource. This partly explains the great popularity of CFDs.

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It works similarly with gold. There is a limited quantity. Although new deposits are still being discovered, it is never clear how much will be added in the near future. However, the probability of a large amount is so low that the value remains comparably stable.

A driving factor in the inflation of “real” money is the fact that new money can and is always being produced. The more euros there are in the world, the less value a single euro is. On average, the purchasing power of 100 euros always decreases.

What impact will the Bitcoin Halving have?

Nobody can predict the exact effects. The demand and supply of Bitcoin could change. If demand increases with less new availability, the value would increase. However, if the halving means that miners exit due to lower rewards, this can lead to uncertainty.

A year after the previous Bitcoin Halving in 2020, i.e. at the beginning of 2021, there was an extreme upswing. Since the beginning of 2024, Bitcoin has been rising rapidly again. This could be due to the upcoming halving and the hope of a new boom.

However, explicit effects cannot be predicted with certainty. According to finanzen.at, 84 percent of those surveyed in a study expect the Bitcoin Halving to have positive effects and a new high price for Bitcoin to be reached.

Trade CFDs smartly and easily with eToro

The Bitcoin Halving could mean a renewed upswing in the popularity of the cryptocurrency. This makes acting smart even more attractive. Platforms like eToro enable trading CFDs and make it so easy that even beginners can get started easily.

A reputable trading venue for CFDs that German investors want to buy is eToro:

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This is where eToro comes into play. The multi-asset investment platform is designed to be intuitive and use pro tools to simplify trading and managing CFDs. For example, you can use CopyTrader to replicate the trading decisions of other traders you trust in real time.

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