BingX exchange, which is both a cryptocurrency exchange and a forex broker, has a wide range of services in the world and has done a lot of research on the relationship between Bitcoin and Ethereum.

The bitcoin mining reward is completely halved once every 4 years and every 210,000 Bitcoins are mined and can save Bitcoin from inflation. Inflationary rescue of Bitcoin can raise its original price in the market.

At least in these few years (from 2012) until today, it has been like this. The price growth of Bitcoin and other related and blocked coins on different networks can be increased by halving Bitcoin.

If you want to know about Hawking and its impact on the growth of Ethereum in 2024, or what will happen with Ethereum halving, be sure to read on. So, what you read in this article:

  1. What is halving and why does it occur?
  2. What is Ethereum halving?
  3. The impact of Bitcoin halving on the growth of Ethereum
  4. The impact of Ethereum halving on its price growth

What is halving and why does it occur?

If we want to say from halving, we can mean it in halving. The word halving means half. When a valuable coin is mined in the financial market of digital currencies, each time it is mined, there is a mining fee.

When rewards are paid for mining, it is natural that the number of miners and people who go in this direction will increase. The same thing leads to the growth of the price and their rapid extraction.

The halving phenomenon, which is a pre-programmed event, prevents this inflation very effectively. When the desired coins reach a certain number, the reward will be halved. In this case, the desire to mine will decrease and the inflation created on the desired coin will be controlled.

Taking a look at the history of important coins such as BTC and Ethereum, it can be seen that over time, all these coins have grown more with halving. In 2024, there is going to be another halving for Bitcoin that many are waiting for this moment.

Experience has proven that halving can affect the price of a coin, and after that, good growth is expected for the desired coin. We have seen its example in some coins such as Bitcoin.

What is Ethereum halving?

Ethereum is one of the most valuable and popular altcoins in the world of digital currencies. This valuable coin, like Bitcoin, which is discussed further, is facing the phenomenon of halving, and when the mining reward is halved, it is mined less, and its value increases.

Ethereum halving, like Bitcoin halving, can increase the value of Ethereum and have a very positive effect on its price. It is very natural for this to happen. Currently, Ethereum has been able to maintain its value step by step with Bitcoin and its value is increasing day by day.

Traders in this market are looking to know when the Ethereum halving will happen and how they can make a good profit from holding their coins. To know more about this, it is better to first familiarize yourself with the history of Bitcoin halving:

At the beginning of the creation of Ethereum, this coin was launched as a traditional digital currency.

But as it grew, the founders realized there were some scalability issues. They had to make changes to their network to make sure the blockchain could continue to work. It was in 2020 that the official transfer of this currency network officially began.

In the latest changes, Ethereum’s merge has been upgraded and changed from proof-of-work or PoW to proof-of-stake or PoS.

As you know, POW is a mining method where people use their computers to solve mathematical puzzles. On the other hand, PoS relies on a random selection of available validators who have shared their digital currency to validate a transaction.

POW is controversial due to its cost and damaging environmental effects, while PoS is simpler to implement. Validation with PoS leads to more scalable new transactions and token holders are more engaged with the Ethereum blockchain.

As of December 2020, Ethereum will launch the Beacon chain to test Ethereum shares. Launched

This went so well that they decided to move the Beacon chain to the main chain in an event called The Merge. This update was implemented in September 2020 and converted the Ethereum main chain to a PoS mechanism.

One of the important points of The Merge is that it is more environmentally friendly, and validations consume much less energy, which also causes less damage to the environment.

Now, according to the above-mentioned cases, which was the history of the reason for Ethereum halving, it can be seen that Ethereum halving can also lead to Ethereum becoming more valuable and increasing its value over time.

The impact of Bitcoin halving on the growth of Ethereum

In the digital currency market, there is something like this correlation between coins, which is seen between Ethereum and Bitcoin, the highest level of correlation.

Naturally, the growth of Bitcoin can partially lead to an increase in the price of Ethereum, and vice versa, a decrease in the price of Bitcoin can have a great impact on the decrease in the price of Ethereum.

According to the results obtained from the Skew website in 2019, it shows that the correlation coefficient of Ethereum to Bitcoin is equal to 0.9. Among other coins that are affected by Bitcoin, Ethereum has the highest effectiveness.

Now imagine that Bitcoin halving happened. When BTC halving occurs, its mining reward will decrease. As a result, extraction is drastically reduced. For this reason, Bitcoin has become scarce in the market and its value has risen sharply.

When the value of Bitcoin rises, due to the huge psychological impact it has on the market, Ethereum also rises in price. Therefore, it can be said that the increase in the price of Bitcoin can also increase Ether.

The impact of Ethereum halving on its price growth

When an Ethereum halving occurs, it changes its supply. The triple halving of Ethereum does not mean that the number of Ethereum in circulation will decrease drastically. However, the production speed of tokens will decrease compared to before.

Thus, while other cryptocurrencies will continue to add hundreds of tokens per day, Ethereum’s production rate will be much slower. Ethereum halving makes Ethereum tokens more scarce than other digital currencies.

In the future, it may be challenging for investors to buy Ethereum without paying high fees. On the other hand, scarcity makes ETH a more logical choice for transactions, as people won’t have to worry about inflation devaluing their holdings over time.

The act of burning Ethereum also plays a role in controlling inflation; because it causes extra Ethereum tokens to go out of circulation. With the above interpretations, it can be concluded that mainly, Ethereum halving can lead to an increase in the price of ether in the long term.

Also, by checking the Bing X exchange and its spot and futures transactions and its copy trade and robot trade, you can notice the correlation between Bitcoin and Ethereum.