Bitcoin Halving [Episode 2]

Introduction

Good morning everyone, I wish to talk continue my topic about Bitcoin halving today and I wish to talk about the advantages and disadvantages of this Bitcoin halving. I previously talked about the definition of Bitcoin halving and how it operates. Stay tuned as I quickly throw more light on this crypto growth related topic.

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BITCOIN HALVING[it's advantage and disadvantage]

The last time I talked about Bitcoin halving, I said is a process that always in every four years and is something that will occur this year 2024 because it happened last in the year 2020, though I missed it because I don't have any knowledge of steemit and crypto that year. I will briefly talk about the advantages and disadvantages of Bitcoin halving, everything does have advantages and disadvantages so Bitcoin halving isn't left out.

ADVANTAGES

Scarcity increase: The presence or process of Bitcoin halving makes Bitcoin more scarce and that's the moment people will really need it more. It just gets scarce as means of reducing blocks reward. We also know that scarcity is intended to create demand which improves the price.

Competition increase: Bitcoin miners will have to be forced to get involved in a crypto mining competition as everyone wants to profit from this Bitcoin halving. These miners will also change the way they operate because things will be different and it will make unserious miners to quit mining for sometime because they can't stand the hot competition.

Inflation fight: Many of us already know that the existence of halving was to serve as a mechanism to fight inflation as it always reduce the supply of fresh coins in the crypto world in other to maintain the value of Bitcoin which is the king of cryptocurrencies.

DISADVANTAGES

Risks of Centralization: Immediately the weaker or smaller miners stops mining for sometime, mining power will definitely be centralized in the reach of stronger and large surviving miners and this will be harmful to decentralization.

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Unexpected price rate: Is normal for traders or miners to think that the price of different cryptocurrencies will increase immediately after Bitcoin halving but nobody knows what tomorrow looks like so we need to be careful and stay at alert.

Miners Deterioration: Halving process always reduces the rewards of miners and this leads to decline in the hash rate. Just like I said earlier, miners who can't also face the high rate of competition will stop mining for sometime and the same applies here.

Conclusion

I hope you guys learnt something new today? Bitcoin halving is less than 6 months closer, I can't really believe is coming soon, let's see how it goes as we can't really predict how it will look like. See you guys another day.

Disclaimer: Any financial and crypto market information provided in this post was written for informational purposes only and does not constitute 100% investment advice. It's just basic knowledge every crypto trader or investor should have.