BITCOIN #HALVING: WHY THIS TIME COULD BE DIFFERENT?

The Bitcoin “halving” is a scheduled event that halves the reward for mining this cryptocurrency. Some believe that this event has a predictable and positive impact on the price of Bitcoin, based on historical patterns. However, this belief could be an illusion. In the future the effects of this event may not be as predictable as before.

The reality is that the cryptocurrency market is complex and is influenced by many factors beyond the halving. Although prices have increased after previous halvings, there is no guarantee that this trend will continue in the same way from now on.

Why are risk assets now in the spotlight?

The amount of Bitcoin (BTC) mined influences the supply, but does not determine its entirety. Although it is an important variable, its impact has changed over time. In the early years of Bitcoin, when the cryptocurrency was scarcer, the influence of miners was significant. Each new Bitcoin had a more noticeable effect on the total supply.

However, as time has passed and Bitcoin has become more integrated into financial markets, the influence of newly mined BTC on supply has diminished. In the early days of Bitcoin, after the creation of the genesis block, it was easier to mine a BTC than to buy it. The amount of BTC produced every 10 minutes was significant compared to the number of buyers willing to pay for them. Over time, this situation has changed dramatically. #Binance #Bitcoin #Ethereum #Ripple #SEC