In the early days, Bitcoin (CRYPTO: BTC) was a niche technology, primarily known to tech enthusiasts and often unfairly associated with illicit transactions. Fast-forward to 2025, and Bitcoin stands as a dominant player in the global financial system with an astounding market capitalization hovering around $2.2 trillion. No longer an outlier, the digital asset is now recognized by institutional investors, high net-worth individuals, and even sovereign entities.

Understanding Bitcoin’s Four-Year Halving Cycle

One of Bitcoin’s most distinguishing characteristics is its pre-programmed supply schedule. Every four years, an event called the halving takes place, reducing the number of new bitcoins created and earned by miners by 50%. This process effectively halves the asset’s inflation rate and has profound effects on market dynamics. The latest halving occurred in April 2024, reducing the mining reward to 3.125 BTC per new block.

Historically, each halving has triggered a bull market that peaks within 12–18 months after the event. For example, after the 2020 halving, Bitcoin’s price skyrocketed, reaching a then-record near $68,000 in November 2021, and following the 2016 halving, it rose above $19,000 by December 2017. These cycles, marked by sharp uptrends and subsequent corrections, have repeated with astonishing regularity, though the magnitude and duration of price swings are subject to broader market and economic conditions.

Why Bitcoin’s Supply Model Matters

Unlike fiat currencies, which can be issued in unlimited quantities, Bitcoin has a fixed total supply of 21 million coins. This scarcity is coded into its protocol, making it immune to inflationary pressures caused by monetary expansion. With approximately 19.7 million bitcoins already mined, the remaining supply is exceedingly scarce. This fixed supply, coupled with growing demand from institutional investors, exchange-traded funds (ETFs), and even sovereign financial vehicles, is a powerful tailwind for long-term price appreciation.

Institutional Adoption and Mainstream Acceptance

Several catalysts have fueled Bitcoin’s surge in popularity beyond the retail community. In 2024 and 2025, the launch of multiple U.S.-based spot Bitcoin ETFs, such as those from BlackRock, Fidelity, and Bitwise, provided mainstream investors with streamlined access to the asset class. Adoption has further accelerated as leading payment platforms, including PayPal and Visa, have integrated Bitcoin and stablecoin settlement options, opening up digital currencies to a worldwide audience.

Meanwhile, global jurisdictions have clarified regulations around crypto. The United States, European Union, and parts of Asia have enacted frameworks for the legal recognition and supervision of digital assets, lending both legitimacy and stability to the market. The One Big Beautiful Bill Act (OBBBA) in the U.S., which expanded government fiscal stimulus and debt, has also made Bitcoin more attractive as a hedge against potential inflation and devaluation of traditional currencies.

Bitcoin vs. Traditional Assets: Superior Returns, Higher Volatility

In the three years leading up to July 2025, Bitcoin delivered an eye-watering total return of 416%, easily outpacing the broader stock market and most asset classes. Yet this performance comes with notable volatility. Bitcoin has experienced significant drawdowns — often 50% or more — following euphoric peaks, as speculative bubbles give way to corrections and market consolidation.

Despite these swings, Bitcoin’s long-term investors (“HODLers”) have historically been well rewarded for their conviction and patience. Attempting to time the market, hoping for a correction before buying in, has proven less effective than maintaining a long-term, dollar-cost-averaging strategy. The underlying thesis remains: as adoption accelerates and new supply diminishes, upward pressure on price intensifies.

Risks and Macroeconomic Uncertainties

Looking toward 2028, potential investors must be mindful of macro risks. The crypto asset’s price could be influenced by global recessions, shifting central bank policies, increased regulatory scrutiny, or a resurgence in inflation prompted by government spending measures. The next halving, expected in spring 2028, could coincide with such events, triggering another dramatic cycle of euphoria and anxiety.

Still, betting on a significant price drop before the next halving may be unwise. Crypto markets are notoriously forward-looking, and periods of heightened uncertainty have historically been followed by sharp recoveries as investor sentiment improves and adoption expands.

Bitcoin’s Unique Value Propositions

• Scarcity: With a fixed supply of 21 million, Bitcoin’s scarcity gives it an edge over inflation-prone fiat currencies.
• Decentralization: The absence of any central authority reduces systemic risks and censorship, appealing to investors worldwide.
• Portability and Divisibility: Bitcoin is easily transferable across borders and can be divided into minute fractions, making it adaptable for numerous uses.
• Financial Sovereignty: Holders maintain full control of their assets, providing a safeguard against institutional instability or capital controls.

Importantly, Bitcoin’s technological rails allow for seamless integration in emerging fields such as artificial intelligence (AI) and decentralized finance (DeFi), widening its scope well beyond a mere speculative asset.

Looking Ahead: Should You Buy Before 2028?

As we approach the next halving cycle in 2028, the case for Bitcoin as a long-term investment remains robust. While volatility may continue and market pullbacks are inevitable, the combination of programmed scarcity, accelerating adoption, and favorable macro trends suggests further upside remains.

For those contemplating whether to invest now or later, history indicates that time in the market, rather than timing the market, is the winning strategy. Whether you’re a seasoned investor or just starting out in digital assets, building a position before the structural changes brought by 2028 could offer significant benefits — provided you approach the asset with a long-term mindset and an appreciation for its transformative potential.