LIVEWhy are BTC and all other cryptocurrencies falling?
You might think this is a normal drop because the same thing happened recently when BTC failed to break its resistance point.
You are completely wrong! The reason behind the market crash is the Pre BTC Halving Effect…
Let's look at some data:
First Bitcoin Split:
Date: November 28, 2012
Prize reduction: 50 BTC to 25 BTC
Total Bitcoin supply: About 10.5 million
Price 1 day before: About $11 per BTC
2nd Bitcoin Split:
Date: July 9, 2016
Prize reduction: 25 BTC to 12.5 BTC
Total Bitcoin supply: About 15.75 million
Price 1 day before: About $657 per BTC
3rd Bitcoin Split:
Date: May 11, 2020
Prize reduction: 12.5 BTC to 6.25 BTC
Total Bitcoin supply: Approximately 18,375 million
Price 1 day before: About $8,600 per BTC
4th Bitcoin Halving (Forecast):
Date: April 19, 2024
Prize reduction: Expected from 6.25 BTC to 3.125 BTC
Total Bitcoin supply (Estimated): Approximately 19.6875 million
Price 1 day in advance: Cannot be predicted accurately.
I know this is confusing. Let me explain..
How does Bitcoin actually work?
Yes, Bitcoin didn't start out like today's ETH based coins where developers mint as many coins as they want and start airdropping them.
BTC is programmed in such a way that if you need BTC, you have to mine it. Even the founder of Bitcoin, he also mines Bitcoin and stores it in his wallet.
The greater the number of blocks in the network, the more complicated the mining process becomes. Basically miners are behind all transaction confirmations. If you haven't read my post about the Halving, I recommend you to read all of my posts. I use the simplest words to explain.
The problem, the founder knew, was that as technology improved, mining would become easier. So more and more people will start mining Bitcoin, so the market supply will increase drastically.