Steemit Crypto Academy Contest / S12W2 -: STEEM Vs Bitcoin halving
Steemit friends, how are you all? I hope you are all well by God's grace. I am also fine by the grace of God. Today, I will participate in a nice engagement challenge from the SteemitCryptoAcademy community. The name of the engagement challenge is Steemit Crypto Academy Contest / S12W2: STEEM Vs Bitcoin halving. I hope everyone will like my writing.
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I have been wanting to learn about Cryptocurrencies, Bitcoin, and Steem for a long time. I read and learned a lot while doing this community engagement. I participated in the engagement today from my studies. I want to learn more about cryptocurrency and Steem.
Impact of Bitcoin Halving on Cryptocurrency: Bitcoin halving in cryptocurrency is also called halving. This halving happens approximately every four years. This is a planned event. Halving cuts miners' block rewards in half. Decreasing the amount of new BTC affects its value.
Bitcoin halving is a specific event that happens once every 210,000 blocks. Miners are then awarded a fixed amount of Bitcoins. This halving process continues until the next twenty-one million bitcoins are mined.
The purpose of Bitcoin halving is to control inflation. Ensuring that the value of each bitcoin does not depreciate too much.
| Year | Block Award | Half Block Award |
|---|---|---|
| 2012 | 50 BTC | 25 BTC |
| 2016 | 25 btc | 12.5 Btc |
| 2020 | 12.5 BTC | 6.5 BTC |
| 2024 | Upcoming | Upcoming |
Three types of effects are shown below:
A bitcoin halving cuts miners' block rewards in half, causing some miners to leave the network. Because their revenue stream decreases and profits may decrease. Then, the hash rate will decrease. This can cause network security issues.
Another effect of the bitcoin halving is that the supply of new BTC to the market will decrease. Then, it will influence the price.
Some investors will do well after the Bitcoin halving for psychological reasons. Because new supplies can reduce prices and increase prices. Again, some investors may experience reduced revenue and lower hash rate.
I know Bitcoin is halved every four years. Bitcoin was last halved in 2020. The next Bitcoin halving will be in 2024. So, I have discussed below the timing of the latest 2020 Bitcoin halving in terms of engagement.
11 May 2020 screenshot
Bitcoin last halved in May 2020. I took a screenshot from coinmarketcap software and saw that Steem's price was in the red zone when Bitcoin halved. I have shown with four screenshots of the entire month. The screen shows the Steem price ($0.1658) and Vol ($4.41M), i.e., the price in red color (down). Then, the price gradually increased. At the end of May, the price was ($0.2134), and Vol ($3.34) was red color. But the price is slowly increasing.
Technical analysis with coinmarketcap software shows Steem price ($0.1516) and Vol ($1.53M) today. Here the price is in green color. That is, the price is increasing.
Steem screenshot of today's market
On the other hand, when the last bitcoin halved in 2020, the picture shows the price($0.1658) and Vol($4.41). Then the price is in red. That is, the price was downward.
Latest Steem Screenshot of bitcoin halving in 2020Coinmarketcap
Advantages of Cryptocurrency Bitcoin Halving: A halving of miner rewards will reduce the number of miners and thus increase the price of Bitcoin transactions in the market.
A decrease in the supply of Bitcoin can stabilize the price and make Bitcoin more attractive.
The lower the circulation of Bitcoin in the market, the stronger its security. Bitcoin is then secure and attack-resistant.
Disadvantages of Cryptocurrency Bitcoin Halving: Miners will be less profitable if the miner's reward decreases, resulting in a lower hash rate. As a result, the number of miners will decrease in the market.
If Bitcoin halves, Bitcoin will likely become centralized, i.e., those with a lot of Bitcoin will increase their reserves. Then, the security of Bitcoin will decrease.
This is my Twitter share link :
https://twitter.com/mahadih83660186/status/1701909736659235278?t=Vi4rsv_7_aKOzEfr5gC9QQ&s=19
You have delivered an indebt analysis of the topic the best way you understood it. Giving what bitcoin halving is all about, how it affects other cryptocurrencies and Steem. You've presented some valid points and I wish you all the best 👍
Dear, Thank you so much for reading my post and leaving a nice comment. I am following seniors like you to learn about Steem and Cryptocurrency Bitcoin. Hope you will support me.
Thanks for sharing your insight on bitcoin halving you did justice explaining what halving is and how it affects miners as well as the price of cryptocurrencies, sure steem have no doubt been affected by last bitcoin halving looking forward to a better bull run next year.
Dear, Thank you so much for reading my post and leaving a nice comment. I have a lot to learn from your seniors about Steem and Cryptocurrency Bitcoin.
You're much welcome i trust you're in the right place to learn love seeing people who are passionate and curious about blockchain technology.
Hi, friend
I admire the people who carry out their analysis of this type of cryptomarkets, at first it was difficult for me and since I want to learn, it motivated me to try and participate. It is incredible how Bitcoin has positioned itself in the cryptocurrency market and when its reduction occurs, there is no opportunity to generate profits, although not for everyone since it has its advantages and disadvantages.
Thank you for sharing with us.
Dear, First of all thank you very much for reading my post and leaving a nice comment. I also want to learn about cryptocurrency. So read and learned a lot before posting. Gained some knowledge about cryptocurrency. Good luck to you.
Hi @mahadisalim,
Yes this is an automatic process that take place after every 4 year and it surely increase demand which can lead the price of the BTC in an upward trend. The previous data also show that the BTC price increased after the halving.
Yes you are right and I am agree with you because when halving occurs the reward reduce to half and the miners with small resources leave the BTC mining which can impact the security of the BTC blockchain.
Thank you so much for sharing this article with us with a good information. I will be thankful to you if you also visit my post because I participated in this contest. Good luck my brother .
Good morning from Pakistan 🇵🇰
Dear,
@malikusman1 brother,
First of all thank you very much for reading my post and leaving a nice comment. I am lucky to get comments from senior users like you. I studied cryptocurrency while posting and learned a bit then wrote. I will read your post and learn something from you. Good luck to you.
En los tres halving anteriores 2012,2016 y 2020 produjeron tendencias alcistas impresionantes antes y después del evento. Las flutuaciones de valores del BTC afectará al resto del mercado.
Saludos y éxitos.
Dear, Thank you so much for reading my post and leaving a nice comment. Knowledge of cryptocurrency bitcoin halving and steem is again very low. So I want to learn slowly. Good luck to you.
Gracias por tu participación y comentario.
Saludos y feliz día.
you presented with answer of every question in a good way but your information was not too much clear in some of the questions so some of the questions required some more explanation but over all you try to attempt the engagement challenge
You have clearly explain that what is bitcoin halving event and how this event is helpful to affect other cryptocurrencies as well as you have also explain that when last time this event happens then how cryptocurrencies and more particularly how steem price effect in a positive way as well as you have also shown us analysis about future price prediction but according to me that are not actually that you have shown to us and what is being asked in this challenge
You have illustrated some of the advantages and some of the disadvantages which also required much explanation but you have just mentioned to of the most common points but all if I summarize my discussion on your post then I must say that in your future I want to say more quality content from you but that was not bad effects that you made while participated in this engagement so still I wish you success
Dear, First of all thank you very much for reading my post and leaving a nice comment. I have studied before posting about cryptocurrency Bitcoin. I want to know more about cryptocurrency bitcoin. I want to study and learn from you. Good luck to you.
Aapane is topic ko bahut acchi Tarah se explain Kiya aur har baat ko Ham tak pahunchane ki bahut acchi koshish ki hai iske alava main aapke hr jwab say itefaq Karti hun kyon kya aapane bahut hi behtarin andaaz mein sab chijon ko explain Kiya Lekin aapka technical analysis bahut week hai aur mujhe second aur third question ke answers padhakar aisa Laga jaise aapane questions ko sahi tarah se pic nahin kiya ke actually kya requirement hai
Agar Main Fawad aur nuksan ki baat karun to yah har chij ke hi hote hain aur agar koi investor invest karna chahta hai to usko chahie ki vah self research Karen kyunki yah bahut jyada jaruri hai jab bhi aapko Hi Kam Shuru karna chahe.
Main aapko Dua deti hun iske alava main future mein aapse bahut achcha content expect Karti hun ki aap koshish karenge Apne content ko improve kar sake aur next time jyada search ke sath topic ko explain kar sake.
Dear, Thank you so much for reading my post and giving nice comments and suggestions. I will be studying and posting more about Cryptocurrencies Bitcoin Halving and Steem. Hope to get your help.
Hola cariño 😊
Muchas felicidades por atreverte a participar en estos retos de nuestra academia, siempre es bueno dar el primer paso para aprender y con ellos ganamos mucho conocimiento y experiencias.
Tu investigación está muy buena para ser tu primera así que vas muy bien, mantente con buen ánimo y mucha constancia.
Saludos éxitos y bendiciones
Dear, Thank you so much for reading my post and giving nice comments and suggestions. I can definitely learn from seniors like you.