April 19, 2024 Grandpa checks in

The fourth Bitcoin halving has been completed, and the block reward has been reduced from 6.25 to 3.125, which is still a historic moment. It is worth noting that the last block before the halving, the 840,000th block mined by ViaBTC, contained a total of 3,050 transactions, and the total block reward was actually 40.751 BTC. The original block reward of Bitcoin was set at 50. After four halvings, the number of block rewards is already low enough. As more and more people use and adopt it, the ideal situation is that as the subsequent block halving rewards are further reduced, the handling fees are sufficient to support network security.

Another scenario is that the price of Bitcoin continues to reach new highs. As long as the cash value of the block reward reaches a certain amount, the security of the network is sufficient. In fact, this ingenious design of Bitcoin also includes this point, because the reduction in the number of halvings is to reduce the number of supply-side, which will eventually increase the unit price of Bitcoin in the market. The adoption of the Bitcoin network by more people means that the demand side is increasing, which will also increase the price of Bitcoin. From this, we can see that the core of this design lies in adoption and recognition, which is why so many projects that imitate the principles of Bitcoin cannot grow steadily. The recognition of Bitcoin has been verified by the market for more than ten years.

After the halving, the value of Bitcoin will continue to grow, and the reduction in demand will slowly take effect under the influence of time factors, and eventually Bitcoin prices will continue to reach new highs, which is the most common thing that has happened in the past decade. From a long-term perspective, buying Bitcoin at any time will reach new highs, because this is determined by the mechanism. After all, Bitcoin is also benchmarked against the total amount of money in the existing financial system. Inflation is impossible to stop, so the value of Bitcoin will not stop growing.

When we are bottom-fishing and buying, we can actually consider this factor. In fact, many people do the same, so they dare to lie flat when they are trapped. But when doing this, you need to pay attention to buying the big cake or the target that is strongly related to the big cake. In terms of the market, it will still fluctuate near the support level in the short term. You can do some swing trading, or just bottom-fish. If there is no new risk point, hold it boldly.

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