Why is "Halving" considered a very important event in the world of cryptocurrencies?
Halving is a phenomenon that occurs approximately every four years. This is the moment when the reward for creating a new block in the $BTC blockchain is halved.
How does this affect the price of $BTC?
Halving creates a scarcity pattern, reminiscent of the situation with precious metals, which contributes to increased demand and higher prices.
Reducing the block reward reduces the rate at which new coins are introduced into circulation. This helps control inflation and supports the price of Bitcoin.
Halving also has an impact on the economics of mining. As the block reward decreases, miners need to use more computing power to maintain their profitability. This makes the network more secure and resistant to attacks.
Bottom line: Like gold, Bitcoin has a limited supply, and halving enhances this characteristic, making it more attractive as an investment option and medium of exchange.
