Introduction to Bitcoin Halving Cycles
Bitcoin's "halving cycle" refers to the event where the mining reward is cut in half approximately every four years. This mechanism gradually reduces Bitcoin's supply, maintaining its scarcity and value over time.
Key Benefits of Investing in Bitcoin-Related Stocks
Tax Advantages
- Bitcoin profits face progressive taxation up to 55%.
- Stocks qualify for separated taxation (20.315%) and can leverage NISA for tax-free gains.
Stock-Specific Perks
- Dividends and shareholder benefits (varies by stock).
- Lower regulatory risks compared to direct cryptocurrency investments.
Market Accessibility
- Traded on transparent securities markets.
- Combines exposure to Bitcoin's growth with traditional stock benefits.
The Mechanism Behind Bitcoin Halving
Historical Halving Events
| Halving Event | Date | Pre-Halving Price | Post-Halving Peak Price | Peak Date |
|---|---|---|---|---|
| First | November 28, 2012 | ~$12 | ~$1,000 | November 2013 |
| Second | July 9, 2016 | ~$650 | ~$20,000 | December 2017 |
| Third | May 11, 2020 | ~$8,700 | ~$69,000 | November 2021 |
| Fourth | April 20, 2024 | ~$27,000 | ~$10,000 | December 2024 |
Why Prices Rise Post-Halving
- Scarcity Effect: Reduced supply increases demand.
- Market Sentiment: Anticipation of higher prices drives investment.
- Institutional Interest: ETFs and regulatory approvals amplify inflows.
👉 Explore Bitcoin halving trends in detail
Bitcoin Mining Explained
What Is Mining?
Mining involves validating Bitcoin transactions and adding them to the blockchain. Miners compete to solve complex mathematical problems, earning rewards in newly minted Bitcoin or transaction fees.
Key Points:
- Decentralized Process: No central authority governs Bitcoin issuance.
- Energy Consumption: High computational power raises environmental concerns.
Bitcoin vs. Bitcoin-Related Stocks
| Aspect | Bitcoin (BTC) | Bitcoin-Related Stocks |
|---|---|---|
| Nature | Digital currency | Equities tied to crypto businesses |
| Trading Venue | Crypto exchanges | Stock markets |
| Regulation | Crypto-specific laws | Securities regulations |
| Taxation | Miscellaneous income (up to 55%) | Capital gains (20.315%, NISA-eligible) |
| NISA Eligibility | No | Yes |
Example Stocks: Coinbase Global (COIN), MicroStrategy (MSTR).
How to Trade Bitcoin Stocks on Moomoo Securities
App Version:
- Open the app → Tap "Market."
- Scroll to "Themes" → Select "Crypto Assets."
Desktop Version:
- Launch Moomoo PC app → Click "Market" → "US Stocks."
- Navigate to "Concept Stocks" → "Digital Currency."
👉 Start trading with Moomoo today
FAQs on Bitcoin Halving
Why Does Bitcoin Have Halving Cycles?
To control supply inflation and preserve long-term value by reducing block rewards periodically.
When Is the Next Halving?
Expected around 2028 (5th cycle).
How Does Halving Impact Prices?
Historically, prices surge within 12–18 months post-halving due to supply constraints.
Disclaimer: This content is for informational purposes only and does not constitute investment advice.