Translation: Vernacular blockchain It is well known that "2024 = Bitcoin halving" is also a long-awaited event for all enthusiasts. Looking at the performance of the past halvings, you can understand why everyone is excited about the next year. Now, as the penultimate month of 2023 approaches, analysts' predictions have reached a peak, let's take a look at the hot discussion behind the 2024 halving event. Can it really bring a great year for the DeFi space? 1. Bitcoin halving: What is it? Bitcoin is finally popular again, and it has once again become the focus of attention after a challenging 2022. Bitcoin has finally broken through the $35,000 mark and seems to have a rebound that has never been seen in the last quarter of 2023. While "ETF" is a word that is highly valued by Bitcoin maximalists and the DeFi field community, the word "halving" is also a word that is often promoted as we move towards 2024. Many analysts predict that Bitcoin will hit the $100,000 mark by 2024, as shown in the chart, and the community just hopes that this rebound marks the end of the bear market. The word “halving” is common in every analyst’s predictions, which has sparked a huge discussion in the community. You may ask why this halving event is special? To understand halving and what it actually represents, we need to understand the origins of the Bitcoin network.Thus, Bitcoin was launched by Satoshi Nakamoto in 2008 as a peer-to-peer electronic payment system built on a blockchain network. Its peer-to-peer network means that the system operates in a decentralized manner, with Bitcoin transactions being verified by everyone who has a copy of the ledger. This decentralized network is the first of its kind for Bitcoin, and forms a vital part of the security behind the blockchain system. These Bitcoin blockchain users who verify the authenticity of transactions are called miners, and are rewarded with a certain amount of Bitcoin for their efforts. As Bitcoin began to gain widespread attention from the community, these transactions began to become more common, and suddenly a new wave of interested miners appeared. Now, the "halving" is a system that complies with the limited supply of Bitcoin and ensures that there will still be enough Bitcoins to be mined in the coming years. The Bitcoin halving or "halving" is an event that occurs every four years in the total 2100 million Bitcoin network. It is an event that cuts the reward for verifying a single block of transactions on the Bitcoin network in half, in order to limit the amount of new Bitcoins that are generated. Although the exact date is still unknown, the next Bitcoin halving is expected to occur around April 2024 at block 840,000, with the block reward dropping from 6.25 BTC to 3.125 BTC. These halvings are not only meant to keep the supply of Bitcoin meeting demand, but also to keep the Bitcoin network running for the next few years. Miners are the backbone of the Bitcoin blockchain network, and as long as the rewards remain, we can rest assured that the blockchain system will continue to function. A big reason for this is obviously for traders looking to capitalize on the momentum and hype behind this special event. Why is this a special event, you might ask? We know from history that the momentum gained by Bitcoin is often a catalyst for other digital assets in the DeFi space. Bitcoin remains the most popular digital asset in crypto, and it is fair to see that the market cap of the DeFi space will follow its lead. That is why the halving, a highly sought-after event in the DeFi space, is expected to see the end of the crypto winter. The first halving event took place on November 28, 2012, when the network reached 210,000 blocks since its launch in 2009 and the reward was halved from 50 BTC to 25 BTC.At the time, Bitcoin was still relatively unknown to the general community, and after the 2012 halving, the price of Bitcoin soared from $12 to $1,032 (over 8,500%) in less than a year, and the growth began to attract more investors to join. The second Bitcoin halving occurred on July 9, 2016, when the network reached 420,000 blocks since its launch, and the reward was further reduced by half, from 25 BTC to 12.5 BTC. At the time, the value of Bitcoin had reached $651, but it experienced a massive crash shortly after in 2017. This crash proved to be temporary and rebounded to an all-time high of $20,089 around 2018 as it experienced its second boom period since its inception. The third Bitcoin halving occurred on May 11, 2020, when the network reached 630,000 blocks since its launch, and the reward was reduced by half again, from 12.5 BTC to 6.25 BTC. This is a strange thing to happen because it happened in the midst of the uncertainty of the pandemic, but during this time the economics of the system began to shine. Despite the economic uncertainty and lockdowns, Bitcoin has managed to rebound to its current all-time high of $66,000 18 months after the halving. Unfortunately, we all know what happened before this amazing rally, but the halving event seems to be a good catalyst for the DeFi space because of the economic factors behind the system. As long as the demand for Bitcoin remains strong, the smaller supply should theoretically provide greater value, but this is not guaranteed. So what will the outlook for Bitcoin be after the next halving in 2024? 2. Will it have a big impact on the trajectory of the DeFi space in 2024? As mentioned above, no matter what happens to Bitcoin, it should theoretically have a large-scale impact on the growth and development of the DeFi space. The Bitcoin boom in 2021 is a great example of this, as it has brought many new developments to the DeFi space. The concept of NFTs and the metaverse was a non-existent topic before 2021, and it will only continue to grow as more creators begin to join in exploring this field.This growth is also reflected in the user base as the DeFi Space became the most talked about opportunity during the pandemic with the number of users almost tripling compared to the previous year 2020. This subsequently prompted more institutions to expand the functionality of the DeFi Space and other innovations introduced by different digital asset providers. Of course, value remains the most obvious impact of the halving, but there is a lot of growth that has come from the event. When talking about value, we know that the DeFi space can also be a volatile space, so we all need to be careful about the DeFi projects we choose. The halving can also cause some miners to lose interest in the network as they receive less rewards than before, so the Bitcoin network may be subject to some adjustments, but this also ensures that the Bitcoin supply will always be there for the next few years. All in all, the halving event has a huge potential to have a positive impact on the trajectory of the DeFi space in 2024. Combined with the positive momentum that Bitcoin is currently gaining, it is reasonable for analysts to predict that Bitcoin may crash to a new all-time high by 2024, but we also need to conduct research to prove our own predictions correct.

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