Steemit Crypto Academy Contest / S15W1 -Steem & Halving Bitcoin 2024
I am happy that the Steemit Engagement Challenge has started again I am so delighted to begin my entry into the Steemit Crypto Academy Contest. Friends, I welcome you to my post as you are here to read and contribute to my post.
How could the Bitcoin halving in April 2024 influence investors' general perception of cryptocurrencies, and in particular, what impact could it have on the STEEM token?
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Next month which is April 2024 we all are expecting to see a new dimension in the crypto market as Bitcoin will be halved again which is an event that usually takes place every 4 years.
Having is an event that reduces the number of Bitcoin and other cryptocurrencies that would be halved in the market, but increases the price of Bitcoin and other cryptocurrencies which Investors would be happy about since the value of their holding will rise. It is all about creating scarcity or having a limited supply of cryptocurrency to increase its value in the market.
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Halving will reduce the rewards that miners will be earning from mining Bitcoin in 2012 Bitcoin was reduced to 25 BTC, and the halving that happened in 2026 and 2020 reduced mining rewards to 12.5 and 6.25 BTC. Simply put Bitcoin halving is a way by which new Bitcoin is created which will affect the demand and supply of Bitcoin in the market...
The halving of Bitcoin in April 2024 will increase the price of Bitcoin and other cryptocurrencies like Steem because the supply of Bitcoin will be reduced, whereas the demand for Bitcoin will then be high which will increase the value of Bitcoin and other cryptocurrencies like STEEM.
Investors are already aware of and anticipating Apil,2024 because Investors including myself believe that the Bitcoin halving is associated with the increased ease of the market. Right now Investors are closely looking forward to the crypto market regarding Bitcoin halving as the event will lead to the fluctuation of higher prices.
Generally, Bitcoin's halving stimulates Investors and brings about discussion and innovation within the crypto and blockchain community fostering community development and technological advancement. The impact that STEEM coin would have from Bitcoin halving is that the price of STEEM will rise as the entire crypto market is expected to increase (rise).
STEEM/BTC chart. Screenshot gotten from Tradingview app
Now since Bitcoin halving can lead to significant price volatility in the entire crypto market, Investors are preparing their portfolios by buying more cryptocurrency ahead of time so that the halving will occur. For example, many Investors have begun to increase their portfolios as they believe a reduction in supply will lead to an increase in price.
What adjustments in the supply and demand dynamics of cryptocurrencies could result from Bitcoin halving, and how could these changes influence the valuation of the STEEM token?
The reduction of new supply of Bitcoin can lead to speculative market activities as we have seen in previous halving events where the price of Bitcoin and other cryptocurrencies increase in value following the halving of Bitcoin.
Understanding the halving event is very important to every crypto trade as it plays a very big role in the demand and supply of cryptocurrencies.
When the rewards for Bitcoin are reduced, selling pressure will also be reduced in the market which can lead to an imbalance between demand and supply of Bitcoin and other cryptocurrencies like Steem thereby propelling the price to rise upward.
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Supply will be reduced due to halving which means scarcity in the market. Limited supply of cryptocurrency increases the value of cryptocurrency which is propositional to the supply and demand dynamic.
The changes could influence the valuation of the STEEM coin because the Steem rewards pool will also be reduced. Before we print SDB when the price of STEEM rises to $0.20 upwbut bit today it has been changed to $0.25 above.
How might specific characteristics of the STEEM token, such as its content-based reward mechanism, be impacted by macroeconomic changes resulting from the Bitcoin halving?
Just as I have introduced earlier Steem rewards pool will be reduced and adjusted the way Steem Dollar (SDB) is adjusted. The rewards mechanism for earning STEEM coins through writing and upvoting content on the Steemit Platform will be reduced due to the macroeconomic changes resulting from the Bitcoin halving.
Steem rewards pool is reduced every year which means once Bitcoin halving has successfully taken place some percentage of Steem coin will be reduced through a process known as inflation. If am not mistaken the current inflation rate of Steem is around 9.5% with an annual decrease of about 0.5% yearly until the STEEM coin inflation rate drops down to 0.95%.
From the above, information, it means the rewards that we will be earning from Steemit through its rewards pool will be reduced and no matter how small the rewards will be will we still be earning STEEM from the rewards pool as the value of STEEM coin will then be higher.
What lessons can investors learn from previous Bitcoin halvings to anticipate market trends and make informed decisions regarding the STEEM token?
There are many lessons investors learn from previous Bitcoin halving to anticipate market trends and make informed decisions regarding the STEEM token. Some of these lessons are;
Investors learned how volatile Bitcoin is. In 2012, after Bitcoin was halved it later skyrocketed up which increased with a percentage of more than 8000%. With this lesson, Investors can make informed decisions regarding STEEM Investment.
Investors learned that the uptrends of halving result in a bull run. Before the previous Bitcoin halving occurred many Investors sold their assets after the halving those who sold their Bitcoin regretted it.
Investors learned about seeing a change AFTER the Bitcoin Halvings. Immediately after halving, there is usually a bigger move in price which usually lasts for more than 3 months. For example, looking at the second halving of Bitcoin we can see how the price of Bitcoin and other cryptocurrencies rise.
I am calling on my friends: @dave-hanny, @ruthjoe, and @vickyson to also take part in the contest.
Greetings, my friend @jasminemary! Your breakdown of Bitcoin halving's impact on STEEM is enlightening. The recipe of reduced supply and high demand could indeed lead to exciting crypto market dynamics. All the best in the contest, success for you! 👍
Thanks for reading
Upvoted. Thank You for sending some of your rewards to @null. It will make Steem stronger.
Saludos cordiales hermosa amiga jasminemary, es un gusto saludarte y leer tu participación.
Ya nos tienes acostumbrados a una participación estupenda, a unas respuestas con un análisis propio apegado a la realidad y con mucha coherencia, te felicito por ello, demuestra que manejas el tema muy bien, espero continúes tu crecimiento y aportes a estos retos.
Feliz y bendecido día.
Thanks for reading sir.
Wow this presentation is awesome it has so many information I have never heard about the Bitcoin and the cryptocurrency reduction and increase on Steem you have taken your time in preparing this article and I wish you the best dearly.
Really. Bitcoin Halving is all about reducing the supply of Bitcoin in circulation which result to scarcity thereby making the value of Bitcoin to be high. Thanks for reading ma.
Hello @jasminemary have a great day.
Thanks for sharing such an informative article about the halving of btc I specially like your way of conveying words to viewers. I have been stuck on the same question for a long time that why investors will invest more and more in BTC after halving, so I got the answer to that question very well after reading your post. Thank you very much. 😁
Thank you so much for reading my post.
My pleasure 😀
Your breakdown of the upcoming Bitcoin halving and its potential impact on STEEM is insightful. I appreciate the clear explanations on supply dynamics and how it may influence STEEMs contentbased rewards. Best of luck in the contest!
Thank you so much sir, for contributing to my post.
Hola amiga @jasminemary, como lo comenta en abril esperamos el halving de Bitcoin y con el la reduccion de las recompensan a la mitad por cada bloque de la red Bitcoin.
Cuando ocurra el halvin tod el mercado criptografico sera empujado en alzay el Steem tambien sera impulzado en alza.
Te deseo exitos en el desafio.
Thanks for reading my post.
Hello dear friend greetings to you, Hope you are having good days there.
You define Halving as; Having is an event that reduces the number of Bitcoin and other cryptocurrencies that would be halved in the market. Yes this is true. In Bitcoin Halving the supply of decreases always by 50%. It leads to the increases in the price of Bitcoin and other cryptocurrencies which Investors would be happy about since the value of their holding will rise.
You said the steem reward ratio will also decreases, as it is decreasing every year. But you are right we still will be in profit if the price of STEEM COIN is increased. I hope the minimum target for Steemit coin will be $1.5 in this bull run.
The best post dear, best wishes for the contest.
Thanks for your kind support here sir.
Thank you, friend!
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