Bitcoin Halving 2028 Explained: Why Long-Term Investors Must Pay Attention Even Years Before It Happens

The largest most popular cryptocurrency in the world is Bitcoin. It has had numerous highs and lows since its inception in 2009 but it manages to stay pertinent. The halving is regarded as one of the most significant events that make Bitcoin strong. Its next 50 percent reduction will be in 2028, although major investors are planning many years in advance. To learn why it is relevant, it is necessary to learn what Bitcoin halving is, why it is important and why even now long-term investors, like me, paying attention to this matter in Nigeria, are so important.

Bitcoin is not issued out of a central bank as is the case with naira or dollars. Rather, it is mined out by means of solving challenging problems by the use of computers to gain entry into the network. Mine workers are rewarded with new bitcoins as payment. But there was a regulation in the creation of Bitcoin, that the total number of coins will not surpass 21 million.

To ensure that it is not completed too soon, the incentive that is offered to the miners is reduced by half after every four years. This is referred to as the halving. E.g. in 2009 miners received 50 bitcoins per block mined. In 2012, it decreased to 25, in 2016 it decreased to 12.5, in 2020, it was decreased to 6.25, and in 2024, it fell to 3.125. The reward will be reduced to approximately 1.5625 bitcoins per block in 2028.

Every halving introduces less new bitcoins into the market. It is comparable to cutting down on the amount of new naira notes printed annually when the demand level of naira does not decrease but actually increases. When supply is cut and demand is steady, of course the price is inclined to increase. This is the reason why halving is a huge event in the price of Bitcoin and any person investing in it.

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Although 2028 is still in the distant future, investors are taking notice. Every halving has a massive effect on the value of Bitcoin, as it has been observed in the history of the cryptocurrency. Following the halving of 2012 the price had soared up after approximately 12 to more than 1,000 in less than a year.

It appreciated by approximately 20,000 in late 2017 after it dropped by nearly 650 in the 2016 halving. Following the 2020 halving, the price increased to an all-time high of 69,000 in 2021 and previously, it was approximately 8,000. The 2024 halving has now been completed and most analysts feel that it will pave way to another big run in 2025 or 2026. Should the same trend persist the 2028 halving would produce another mighty bull run.

This is the reason why long term investors should listen several years before the event occurs. To begin with, halving periods allow time to accumulate. Bitcoin is highly unstable, and its value fluctuates rather fast. However, the price is generally fairly stable over a period before every halving, and then the price rises explosively. This period is used by smart investors to acquire and hold Bitcoin at a low price until the demand forces it into the market at an elevated price.

Second, Bitcoin becomes more scarce with every halving and scarcity produces value. By that time the reward is cut in 2028, Bitcoin will be even more precious than fiat money like naira and dollars, which governments are indefinitely printing more indefinitely. Third, the history of Bitcoin is a cyclic phenomenon: accumulation, halving, bull run, correction, and accumulation. When an investor loses the accumulation phase, he/she will have to buy when the prices are already high. This is why it is so important to prepare in advance.

The other reason why it is worth listening early is that large financial institutions are taking interest in Bitcoin. Having Bitcoin ETFs (exchange-traded funds) approved in certain countries has made it easier to purchase Bitcoin legally and safely by large investors such as banks and hedge funds. The number of institutions seeking to purchase may skyrocket by 2028, and this may complicate the ability of small investors to purchase at reasonable prices in case of lateness.

Bitcoin halving is not an ordinary foreign event to the Nigerians. Our local currency, naira has had its fair share of inflation and depreciation over the years. Saving of money is done by many people, but as time continues prices of goods and services continue to increase making the saving money worth less.

Bitcoin has been constructed to withstand inflation as the supply is not adjustable on demand. By beginning to pay attention, however, Nigerians will be able to harness Bitcoin as a means of wealth protection in the long-term. Suppose somebody starts to purchase a certain volume of Bitcoin now and continues to hold it till after the 2028 halving. Although they may just save in small bits, the history tells us that their savings may be increasing tremendously as scarcity increases the prices.

Nigeria is also home to one of the most rapidly developing youths who consume cryptocurrency. This is an advantage to us since the sooner we will know about the halving cycles of Bitcoin, the more we can strategize our investments. Crypto is already being used by many youths to trade, send and save money. When we all start thinking more about the long-term advantages of Bitcoin halving, the effect it will have on our financial future can be extremely promising.

Naturally, there are threats with Bitcoin. It can fall in price in a flash, there might be government regulations, it might be harder to mine, and its transaction costs might increase due to smaller block rewards. Nevertheless, despite these obstacles, Bitcoin has lasted over 10 years.

With every halving it has been strengthened and made more precious in the imagination of the world. The most important point to learn is that Bitcoin should not be considered as a quick rich scheme and it should be a long term investment. People who get in a hurry and try to make a quick gain will lose, but those who start years early and prior to the halving, will be better off.