What is Bitcoin Halving? Why does BTC price increase after halving?
Every four years, the bitcoin mining process - mining, mining bitcoin - will double in difficulty, causing the number of bitcoins mined to halve. This is bitcoin halving. This cycle was prescribed by Satoshi Nakamoto (the father of bitcoin) in bitcoin's code from the day it was created.
Why suddenly increase the difficulty? You have so much free time, what are you doing, Dad?
Simply put, this process increases the value of bitcoin.
When mining bitcoin becomes more difficult, bitcoin miners will not want to sell bitcoin at cheap prices like before. While electricity bills are increasing, machines are getting older and older, 4 years of continuously mining coins reduces the life of the hardware, now mining is twice as difficult... so stupid, why would I sell it cheap??
Difficulty mining coins leads to a decrease in bitcoin supply. The economic principle of supply and demand is extremely simple. Supply decreases and demand remains the same, so prices must increase. Over here, more and more people want to buy bitcoin that doesn't increase, which is crazy. We sell 100 loaves of bread every day, but now we only have 50 loaves left. But if people want to eat more and more bread, does anyone want to sell it at the old price?
Sellers don't want to sell cheap. Buyers want to buy more. The amount of bitcoin is getting less and less. No new increase dammit đ
1 month left until halving. According to data from 4.5 cycles in the past, after halving the price of bitcoin will fly, but we don't know when and where it will fly. Of course there will be some price shocks to drop weak hands, but who knows when they will be pulled, knowing that the world has no rich and poor people đ $BTC
