Bitcoin halving - my first time experience, course of action now and my expectations!
Introduction
I have read many articles about bitcoin halving and almost everything I saw points made me more optimistic, especially considering the extended market drop of all cryptocurrencies in recent times. For a newbie reading this article, let me briefly explain bitcoin halving.
Bitcoin halving in brief..
Bitcoin halving happens once every four years. It is an event which has be programmed into the network. when it happens, the rate at which new bitcoins are generated and added into the supply is halved (or reduced to 50%). It simply means that miners that validate blocks on the network are rewarded at a 50% less of what they use to receive. Hence, creating new blocks and adding them to the network becomes harder than before. Validators are then moved to raise the value of bitcoin because of the halving event. Since bitcoin has a pre - determined and limited quantity in supply, producing new blocks increases in difficulty every four years and this will make it almost impossible to run out of bitcoins on the network. Well, I tried to explain this in simple terms to the best of my ability. But then, what does mean for all cryptocurrency enthusiasts? For me, it means a whole new experience and an investment opportunity.
My first time experience the opportunity, and expectations
I have not lived through any bitcoin halving event, so I look forward to this one. According to schedule, it will happen sometime before the year runs out. I believe strongly that value of bitcoin will be affected positively after the event. So for now - and if public opinions are to be relied on - I need to buy as much bitcoins as I can. Now that the market is a bit low and flunctuating, investing could be the right thing to do. Of course, every human activity is a risk and things may not always turn out as expected. But then, looking at happened in 2017 after the last halving event gives a clue into what we are to expect. Personally, I expect a huge rise in the price of bitcoin. So if I make significant investments now, I stand to gain a lot in the nearest future.
Conclusion
I hope that the buzz about bitcoin halving will not be just empty noise. Something must come out of it. But then, you are responsible for whatever decisions you make in the crypto space. Never rely fully on anyone's views or opinions. I have made up my mind to invest little by little in bitcoin. Lets see whats happens next.
Have your say
What do you think about bitcoin halving? Have your say!
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I believe that you got this quite right. The supply of new bitcoins beeing reduced, miners will only continue to work if the rewards cover at least the costs. This would work only with higher btc prices.
If prices dont go up the mining acticity will diminuish and transaction costs will increase. Less new coins will be minted and the supply will grow slower. Sooner or later prices have to grow. I think its a good time to buy btc.
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Well, I have also read several analysts who give the idea that the HF that comes for bitcoin should bring an increase in its value, which would indirectly boost other blockchains, I want to be optimistic, it's time to wait and see what happens.