Steemit Crypto Academy Contest / S15W1 - Steem & Halving Bitcoin 2024
Edited using pixellab
Imagine that you have a jar of cookie that is repeatedly refilled with delicious, fresh cookies. Now imagine that, every four years, the amount of cookies inside the jar is halved. Does this sound to good for a reality? It might be - but this is appropriately what happens with Bitcoin. Every fours years, the amount of Bitcoin entering circulation is halved and this mechanism is known as the Bitcoin halving. Not so tasty as a jar of cookies may be, but a very important part of the Bitcoin ecosystem.
STEEM as an altcoin, is always sure to feel the great significance of the event - Bitcoin halving on it ecosystem. For time past we have observed clearly the effects and so, as we await the event, let's discuss about "STEEM & Halving Bitcoin 2024".
The upcoming Bitcoin halving event is said to happen in April on 26th at exactly 11:59 UTC. Over the past years the events have often influenced the perception of investors on cryptocurrencies. The Bitcoin halving in April 2024, would influence investors' perceptions of cryptocurrencies is the following ways I think.
First, it will create excitement and interest in the crypto market. This excitement will definitely increase buying and selling of cryptocurrencies, including STEEM.
Secondly, the halving event will lead to a reduction in the supply of new coins, which can lead to an increase in the price of the existing coins before the event.
Finally, halving events most times, always lead to the increase in attention from the media on the crypto market, which can also create more interest and investments. This year is not exceptional, there will be much increase in interest and investments.
In 2020, when the Bitcoin halving, happened on 11th May, towards the end of the month, STEEM price rose from $0.17 to $0.30. You can see that the halving had much effect on the price of the STEEM token at that time. So in this year 2024, when the Bitcoin halving event takes place in April, we shall see a great upward movement in the price of STEEM. The increase in price will not have instant effect immediately after the halving but the impact is sure to happen as we shall be experiencing a bull market afterwards.
The Bitcoin halving event could possibly cause of number of adjustments in the supply and demands dynamics of cryptocurrencies. For example, the little supply of Bitcoin could lead to an increase in the price of existing Bitcoin and this may as well, work on other cryptocurrencies like STEEM. Additionally, the decrease in supply of new Bitcoin could lead to a shift in demands in the direction of other cryptocurrencies, which can also impact the price of the STEEM token.
However, the valuation of STEEM could be impacted with some significant changes in the supply and demand dynamics. For example, if there is an increase in demand for STEEM as a result of the halving event, this could lead to an increase in the price of the token. However, if the increased demand is not accompanied by an increase in supply, this could lead to a shortage of STEEM and further increase in it price.
Contrarily, if the increased demand is followed by an increase in supply, this could lead to a decrease in the price of the token.
The content-based reward mechanism of the STEEM token could be impacted by macroeconomic changes resulting from the Bitcoin halving in a good number of ways. For example, if the halving event leads to an increase in the price of Bitcoin and other altcoins, this could make it more expensive for people to use the STEEM platform (STEEMIT) and reduce the amount of content created on the platform (not 100% assured). If the halving event, leads to decrease in the price of cryptocurrencies, it could make people use the STEEM platform and increase the amount of content created.
Another possible impact of the halving event on the STEEM token's content-based reward mechanism is the potential impact on the token's inflation rate. The STEEM token has a built-in inflation mechanism that rewards curators and content creators with new tokens. So if the price of the STEEM token increases as a result of the halving event, this could lead to the decrease in the inflation rate, as fewer amount of new tokens would be needed to reward Curators and content creators. As against, if the price of STEEM decreases, the could be an increase in the inflation rate.
Investors can actually learn several important lessons from previous Bitcoin Halvings that can help them to make informed decisions about the STEEM token. First, I will say that it is important to remember that the past performance is not symbolic for future results. So just because the price of Bitcoin increased after previous Halvings does not mean that the same will eventually happen this time. Although this is a just and advice, but I believe that something bigger than the previous ones will happen.
Second, investors should be fully aware of the possibility for increased volatility around the halving event, as both bulls and bears may be trying to take advantage of the event. Finally, I will Also say that investors should be aware that the halving event is only one factor that can have impact on the price of cryptocurrencies, and other factors such as Regulations and macroeconomic changes/conditions can also have significant impact.
For example, in 2020 the COVID-19 pandemic caused significant volatility in the crypto market. Investors should keep these factors in mind, understanding the potential impact of the halving event and having a stabilized outlook so as to make informed decisions about the STEEM token.
In conclusion, the Bitcoin halving is a great event in the crypto space that has the potential to impact a wide range of tokens with the STEEM token no excluded. Investors should be able to make their own research and be aware of the possible impact of the halving event, but should also remember that it is only one factor that can affect the price of cryptocurrencies. To make informed decisions, a balanced approach and consideration of all relevant factors are essential.
Thanks for reading my opinion on this fascinating topic!
I invite @entity01, @us-andrew and @princevincent1
Hello dear friend greetings to you, Hope you are having good days there.
The Bitcoin halving in April 2024, would influence investors' perceptions of cryptocurrencies. Completely agree with you. You have presented some solid reasons for it. All are valid and authentic. Bitcoin halving always create excitement among the investors. They show high interest in the crypto market. This excitement will definitely increase buying and selling of cryptocurrencies.
Ofcourse these news will effect STEEM too. It will have positive effects on it. We can see a huge raise in it's price. Hope it will break the high of previous year which was $1.26.
The best post dear, best wishes for the contest.
Thank you, friend!
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Saludos cordiales amigo emmy01, un gustos saludarte y leer tu participación.
Ya hay una fecha programada para el halving del BTC, seria el cuarto se que vivirá, ya por las 3 anteriores se prevee cierto comportamiento en su precio y en como va a arrastrar a las demás criptomonedas y a las altcoin, por ello muchos se encuentran ahorrando en estas monedas para ver si pueden ganar.
Te deseo mucha suerte en este reto, feliz y bendecido día.
Thanks for stopping by and for your kind reviews
Wow I really learnt a lot from your post, truly the halving of Bitcoin with have a large impact on it ecosystem.
I enjoyed reading your post as it has updated my knowledge about Bitcoin.
Thank you very much sir for your kind words and honouring my invite...
Thanks for sharing this vital information through your article.
Truly, halving of crypto currency would greatly impact positively on the crypto market.
And for us Steemians, it would be of high benefits.
The world of Cryptocurrency will be at benefit when the BITCOIN HALVING happens. And for sure, we Steemians will be at higher benefits... Thanks for honoring my invitation and your kinds review
Greetings friend @emmy01, When the fourth bitcoin halvin takes place, the rewards will be reduced by half each time a block of this ecosystem is mined. When bitcoin started the rewards were 50 BTC. Soon there will be 3,125 BTC and there will be less left.
Everyone wants Bitcoin, but it is not enough for everyone, they are limited, this is where the law of supply and demand comes in, there is less supply with each passing day and demand increases, so bitcoin will still continue to increase. We know about the manipulation that exists in the market but this is another topic.
Success in the challenge.
Hello my friend @emmy01. As you talk about the halving of BTC 2020 and relate the Price of STEEM 0.17 and move to the 0.30, thats really a best achievement indeed.
I want to ask you a question that if the supply of the BTC is became lesser than previous halving how it became interested for the investors as compare to other cryptocurrencies like ATH and many more.
After reading your post I eventually ask this question from you if you would like to answer this question then am waiting for your kind reply and information which will be very beneficiary for me.Am eagerly waiting for your reply. 😁
Your comparison of Bitcoin halving to a jar of cookies makes it easy to grasp the concept. Your insights on the upcoming Bitcoin halving and its potential impact on STEEM are well articulated. I agree the event can bring excitement increase demand and positively influence STEEM value. Your caution about increased volatility and the need to consider various factors is crucial for investors. Best of luck