Bitcoin is already up over 100% YTD, and Bitcoin’s next halving event is anticipated to take place in April 2024. This event could potentially set off another bull run for the cryptocurrency industry and provide a significant tailwind for cryptocurrency-based companies. Among those is Bitbuy, Canada’s premier cryptocurrency trading platform. Bitbuy is wholly owned by WonderFi (OTCQB:WONDF) (TSX:WNDR) (WKN: A3C166), one of the largest cryptocurrency companies in Canada.

Bitbuy offers services for the beginner and advanced trader, with an easy-to-use website and mobile app. The company reports that for those looking for the white glove experience, Bitbuy Private Wealth is the go-to OTC crypto desk in Canada. Bitbuy Private Wealth services corporations and individuals who are looking to make trades of CA$50,000+. We recently spoke to Jeff Fitzgerald, head of Bitbuy Private Wealth about his views on the market, and where we could go from here. Check out the video here. 

What Is Bitcoin Halving?

A Bitcoin halving is when the reward for mining new Bitcoin (BTC) is cut in half. This event occurs roughly once every four years.

Bitcoin miners currently earn 6.25 BTC for each block that they successfully mine. But, in April 2024, this reward is set to fall to 3.125 BTC. The “halving” process reduces the rate at which new Bitcoins are created and introduced to the supply, thus making the existing Bitcoin more scarce.

Halving events are crucial to Bitcoin’s network as it ensures that the total supply of Bitcoin is kept finite. This finiteness is a critical part of Bitcoin’s appeal as it ensures that Bitcoin holders will not lose value through inflation, something that’s a concern with modern currencies.

While traditional currencies lose value over time, halving events helps toward ensuring that Bitcoin retains its value over time.

Previous Bitcoin Halvings

When Bitcoin was first launched in January 2009, miners earned a reward of 50 Bitcoins for their efforts. Since then, there have been three halving events:

1. Nov. 28th, 2012: The mining reward fell to 25 BTC
2. July 9th, 2016: The mining reward fell to 12.5 BTC
3. May 11th, 2020: The mining reward fell to 6.25 BTC

Looking forward, the next halving is anticipated to take place in mid-2024. When this happens, the reward falls to 3.125 BTC.

Halving events are expected to continue until roughly 2140 when the number of bitcoins will reach its predetermined maximum supply of 21 million. At this point, it’s likely that the reward for mining new Bitcoin will fall to one Satoshi (a fraction of a Bitcoin).

So, what does Bitcoin’s halving have to do with the Canadian crypto company WonderFi? The answer is that a halving event could spark a renewed interest in crypto and potentially lead to another bullish run.

Bullish On Bitcoin?

In theory, a reduction in an asset's supply should lead to an increase in that asset’s price, assuming that demand stays the same. With this in mind, Bitcoin’s price could spike during a halving event since there will be fewer Bitcoins entering circulation. 

Bitcoin’s next halving could provide a tailwind to the industry. These events tend to generate significant media attention and buzz around cryptocurrency. The halving in April could lead to a renewed interest in Bitcoin and potentially spark another cryptocurrency bull run. If this happens, WonderFi could be poised to profit.

WonderFi Is One Of Canada’s Largest Crypto Companies

WonderFi wholly owns two of Canada's largest trading platforms – Bitbuy and Coinsquare – along with emerging crypto payments business Smartpay and 43% of Tetra Trust, Canada's leading trust company licensed to custody digital assets. WonderFi has:

• A user base of over 1.6 million registered Canadian trading accounts.
• Combined assets under custody exceeding $730 million.
• $17 billion traded across its platforms all time.
• One of only two regulator-approved crypto staking offerings in Canada

Notably, the company has also gained key compliance requirements for crypto players in Canada. For example, Coinsquare is a Crypto-Native Investment Dealer with the Canadian Investment Regulatory Organization – the Canadian equivalent to FINRA in the U.S. 

Hear directly from the WonderFi team about Bitcoin’s Halving and future plans in this interview! 

Featured photo by Art Rachen on Unsplash.

This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.