#BTCPredictedNewATH Demand $BTC

Because a halving reduces the number of new Bitcoins introduced, demand for new Bitcoins generally increases. This can be noted by looking at Bitcoin’s price after each previous halving event—it has typically risen. The historic increase in demand has driven price increases, which is a good thing for investors and speculators.

Investing #BTCPredictedNewATH

Bitcoin wasn’t intended to be an investment. It was introduced as a payment method that attempted to remove the need to have regulatory agencies or third parties involved in transactions.

It became popular with investors once it was noted that there was the potential for gains. Investors poured into the new asset space, creating demand that the cryptocurrency’s designers may not have anticipated. For investors, a halving represents a reduction in the new coin supply, but it also offers the promise of an increase in investment value if the event’s effects remain the same. But this places Bitcoin investing into the realm of speculation because those invested in the cryptocurrency are hoping for gains.

Mining

Miners are the people, groups, or businesses that focus on mining for its profitability. Even as Bitcoin’s price fluctuated over the years, it remained a lucrative endeavor—if it hadn’t, the large mining businesses wouldn’t have continued operating.

However, a halving cuts mining rewards, so the endeavor becomes less profitable with each halving if prices remain the same or drop. The large-scale mining facilities needed to remain competitive require enormous amounts of money and energy. The equipment and facilities need maintenance and people to conduct it. They also need to upgrade their mining capacity to maintain their position in the industry.

For instance, Marathon Digital Holdings, one of the world’s largest mining firms, increased its Bitcoin holdings to 16,930 and its fleet of Bitcoin miners to 231,000 in February 2024.