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What Does Bitcoin Halving Have In Store For Minto?

March 6, 2024
min. read

This article contains answers to all the questions related to Bitcoin network halving, including the most important one - what will be its consequences for the cryptocurrency market in general and for Minto in particular?

Spoiler Alert: we will earn even more!

What is halving?

Where does Bitcoin come from?

Miners earn 6.25 BTC as a reward approximately every 10 minutes.

But once every 4 years, the reward is halved.

This is necessary so that the issue of bitcoin is not endless.

Because all the inherently limited resources (e.g., gold) are much more valuable than unlimited ones (e.g., sand).

Bitcoin miner's reward for successfully completing 1 block halve every 210,000 blocks

In mid-April 2024, another halving will occur, and the miners' reward will decrease to 3.125 BTC.

This means that the mining profitability will immediately drop by half!

However, there’s no need to worry.

Historically, halving causes rapid market growth in the following 1.5-2 years, which largely compensates for the miners' losses.

Bitcoin price and difficulty with the points of halving
according to HashrateIndex

For instance, following the July 2016 halving, when bitcoin was worth less than $1,000, in December 2017 bitcoin reached $20,000, that is, it grew by 3,000%.

And after halving in May 2020, when Bitcoin was worth a little over $9,000, in November 2021 it reached $69,000, that is, it grew by 750%.

What now?

There is a different situation on the market today.

In 2017 the market was driven by retail investors, in 2021 - by mining companies, and now, thanks to the approval of spot ETFs, institutional capital has flowed into the market.

It has been there before, seeping in deviously, for example, through Michael Saylor's MicroStrategy and other ways that do not contradict the law.

However, since January 11, 2024, the doors are fully open.

Unsurprisingly, the inflow of funds to ETFs in February amounted to 240% - from $29.2bn to $70.5bn and is only gaining momentum:

Cumulative Spot itcoin ETF Volumes

The upcoming halving is able to finally reformat the market for large capital and bring it to completely new levels, not grands, but rather lakhs per bitcoin. 

However, let's not get ahead of ourselves and just wait.

As we have repeatedly noted, even in difficult times when future growth seemed like a fantasy, today Minto is fully ready to soar up, with its mining infrastructure prepared not only for the halving test, but also for the superprofit test.

Do not worry if you see a twofold drop in income immediately after halving.

The market will quickly digest the new reality and give us what we have been systematically preparing for - growth in 2024-2025.

Stay with Minto and let's do exactly what we’ve been planning all along - earn a lot of money!

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