Expectations of Bitcoin rising to 250,000 after the halving: How does it move prices?
Reports
Economy News - Translation
Views 35
Added 09/25/2023 - 2:24 PM
https://economy-news.net/content.php?id=36615
Reports
Economy News - Translation
We often hear about expectations for Bitcoin to rise to imaginary numbers such as $100,000 or two hundred thousand, and expectations have reached a quarter of a million dollars in 2024. All of these expectations are mainly related to the most important event in Bitcoin’s short history, which is the halving.
What is halving and why does it affect the price of the most important digital currency in the world?
Below we list the most important details and explain everything related to the Bitcoin halving.
Q: What is BTC Halving?
A: Halving, which occurs periodically in some cryptocurrency networks, especially Bitcoin, is one of the most important events in the functioning of the blockchain network. Cryptocurrency investors are closely following this event, which directly affects people and organizations carrying out IT activities, called cryptocurrency miners.
Halving is the halving of the mining reward in blockchain networks that operate according to the proof-of-work consensus mechanism. This event, which virtually reduces the supply of cryptocurrencies, increases the price upward trend due to increased demand.
Q: Bitcoin mining reward halving date?
A: Bitcoin is the first blockchain network to implement halving as the first cryptocurrency. When Bitcoin was released in 2009 by its still-obscure developer, Satoshi Nakamoto, the mining reward was 50 bitcoins. With the halving, which occurs every 4 years, the block reward was reduced to 25 BTC in 2012, 12.5 BTC in 2016, and 6.25 BTC in 2020. While miners currently earn 6.25 BTC for each block they mine , this amount will decrease. To 3.125 BTC with the fourth reward halved which will be performed on the Bitcoin network in 2024.
Q: When does the Bitcoin halving process end?
A: The reward halving will end with the 32nd halving in 2140. As a supply-limited asset, Bitcoin is set up as a blockchain network where the reward is halved with every 210,000 blocks produced. Since the Bitcoin supply is set to a maximum of 21 million Bitcoins, when this number is reached, Bitcoin production will end and miners will not receive block rewards. Instead, miners will only be able to earn transaction fees by validating transactions made on existing blocks. To date, 19.42 million Bitcoins have been mined (about 92.5% of the total supply).
Q: Why is the Bitcoin halving important? What is the impact on price?
A: Halving forms the basis of the token economy on the Bitcoin network. In this way, the supply of Bitcoin is controlled and provides a significant advantage over the unlimited money supply of fiat currencies.
In addition, the fact that supply is limited to 21 million is an important factor in the scarcity of the asset. The cryptographic halving mechanism in the Bitcoin software occurs automatically due to the decentralized nature of the blockchain network.
Q: What happens when Bitcoin is halved?
A: The three halving events that have occurred so far have had a significant impact on the price of Bitcoin. However, experts share the opinion that the positive impact of the Bitcoin halving may decrease over the years.
Some even believe that due to the systematic reduction in the amount of rewards miners receive, some miners may be forced to withdraw from the market which may have a negative impact on the price of the cryptocurrency.
While others reject this opinion, rely on the long-term upward trend in the price of Bitcoin, and argue that miners who obtain Bitcoin will receive satisfactory amounts in dollars (because with each halving, the price of Bitcoin rises significantly). In addition, when mining activities in the Bitcoin network decrease, the view that the balance will automatically continue to be created in this area is gaining momentum, as Bitcoin miners who continue to work due to the decrease in difficulty can continue their transactions at a lower cost.
On the other hand, the positive impact of the halving on the cryptocurrency price depends largely on speculative movements. In theory, when demand for a commodity remains constant or increases, a decrease in supply pushes its price to rise. However, at this point, considering other factors influencing demand for crypto assets, it would be wrong to say that halving the reward will definitely lead to a price increase.
Historical data so far has shown that prices rose after the halving event. However, the upward price trend occurred at different times during the relevant periods. Therefore, in volatile markets, it would not be right to expect the cryptocurrency price to rise quickly after the halving.
Historical moments of Bitcoin halving
The Bitcoin network has seen 3 halvings so far. The first halving event began in 2012 and the fourth halving event will occur in 2024.
The first halving of Bitcoin occurred in 2012
The halving of the first reward on the Bitcoin network was very important in testing the economy of the Bitcoin token. This event has raised questions about how it will affect Bitcoin's growth.
With the halving on November 28, 2012, the block reward decreased from 50 BTC to 25 BTC. Bitcoin's price skyrocketed from $12 to $1,030 per year after the halving, an increase of nearly 8,500%.
The second half event was awaited with the same curiosity. Four years later, Bitcoin adoption has increased even more. During this period when the popularity of cryptocurrencies began to increase, the second reward halving occurred on July 9. This time, unlike the first event, there were short-term price increases before the halving.
After the mining reward dropped to 12.5 BTC, Bitcoin traded at $650, and the decline continued for a few more weeks after the halving. About a year and a half after the second halving, Bitcoin hit an all-time high of $20,000 at the time.
In 2020, when the third halving occurred, the Covid-19 crisis dealt a heavy blow to the entire global economy. Bitcoin was trading at less than $10,000 at the time. At the end of the 1.5-year period after the halving, Bitcoin set its historical peak at $69,000 in November 2021.
While the next halving is expected to occur in 2024, the block rewards will drop to 3,125 BTC at block 840,000.
Which cryptocurrency networks other than Bitcoin have a halving mechanism?
While halving activity is observed among cryptocurrencies that are provided via the mining method using a proof-of-work consensus mechanism, some cryptocurrency developers can control the supply in different ways such as forking instead of halving by changing the code.
On the other hand, Litecoin is the most popular altcoin that has a halving mechanism alongside Bitcoin. After the Litecoin reward halving, which is scheduled to take place in August 2023, the reward amount, which currently stands at 12.5 LTC, will decrease to 6.25 LTC.
Among other cryptocurrencies that will be halving on its network, the reward halving event for Bitcoin Cash and Bitcoin SV, which are fork assets of Bitcoin, will also happen in 2024. Currently, the expected reward halving dates for these cryptocurrencies are as follows:
Other cryptocurrencies that have halved among cryptocurrencies with high market caps include assets such as Monero, Zcash, Dash, and Raven.
As a result, halving is a major factor driving investors to show interest in cryptocurrencies that use this mechanism, especially Bitcoin. The reason for this is that, unlike fiat currencies which have an unlimited supply mechanism and are subject to inflationary pressures, cryptocurrencies like Bitcoin have a limited supply and have a deflationary structure due to halvings.
In addition, due to the limited supply of cryptocurrencies, investors tend to hold Bitcoin assets for the long term with a speculative approach, reducing the tendency to spend the asset as currency. This weakens Bitcoin's advantage as a currency and highlights its property as an investment tool as a commodity.
Source/ inversing
Views 35
Added 09/25/2023 - 2:24 PM
https://economy-news.net/content.php?id=36615
Yesterday at 5:10 pm by Rocky
» utube MM&C 5/7/24 Iraq Dinar- IQD Update - Regional Trade - A Progession of Reforms - A Global Bac
Yesterday at 5:09 pm by Rocky
» After a break of more than 9 years.. the resumption of a government trade meeting between Iraq and A
Yesterday at 8:06 am by Rocky
» A deputy in finance expects the Council of Ministers to approve the budget schedules in today’s sess
Yesterday at 8:02 am by Rocky
» A deputy resolves the controversy over the “transfer supplement” in two ministries
Yesterday at 8:01 am by Rocky
» Al-Halbousi’s “vacant” seat.. Will the coordination framework end the “Taqaddum” dream of an allianc
Yesterday at 7:59 am by Rocky
» The Federal Government issues a state order to stop the Commission’s work procedures regarding the K
Yesterday at 7:57 am by Rocky
» Including the freedom to choose the bank and withdraw the salary for “free”... “My Account” features
Yesterday at 7:55 am by Rocky
» The Central Bank sells more than $250 million during its daily auction
Yesterday at 7:51 am by Rocky
» Al-Sudani receives a delegation from the Union of Arab Banks
Yesterday at 7:44 am by Rocky
» Iraq and the United States of America hold trade meetings in Washington
Yesterday at 7:43 am by Rocky
» In pictures... The activities of the Union of Arab Banks conference in Baghdad, “Day Two”
Yesterday at 7:42 am by Rocky
» The Director General of Ports announces the completion of berths (3) and (4) in Al-Faw Grand Port
Yesterday at 7:40 am by Rocky
» The Council of Ministers holds its regular session headed by Al-Sudani
Yesterday at 7:38 am by Rocky
» Parliament publishes the agenda of its session for next Thursday
Yesterday at 7:37 am by Rocky
» A government measure to reduce "money laundering" using the buying and selling of real estate in Ira
Yesterday at 7:35 am by Rocky
» Iraq proposes establishing a specialized council to combat corruption in Arab countries
Yesterday at 7:32 am by Rocky
» Al-Mawarid intends to establish infrastructure and investment projects for the water sector in Iraq
Yesterday at 7:30 am by Rocky
» The Federal Court issues a decision regarding postponing the election of the Speaker of the House of
Yesterday at 7:28 am by Rocky
» A government meeting to discuss financing and implementation mechanisms for the Development Road Pro
Yesterday at 5:12 am by Rocky
» Al-Sudani: Iraqi banks are on the right track with financial transfers
Yesterday at 5:11 am by Rocky
» Al-Khazali: The Turkish side is still imposing its conditions on Iraq
Yesterday at 5:08 am by Rocky
» Rights: We refuse to amend the bylaws of Parliament under political influence and desires
Yesterday at 5:07 am by Rocky
» Nechirvan Barzani: We want to address all problems with Iran and begin a new phase of relations
Yesterday at 5:05 am by Rocky
» Today, Iraq and Iran signed the minutes of a joint meeting related to trade
Yesterday at 5:03 am by Rocky
» KPMG International begins auditing the revenues of telephone companies operating in Iraq
Yesterday at 5:02 am by Rocky
» Oil: The seventh batch of equipment for the gas manufacturing project in the Nasiriyah and Gharraf f
Yesterday at 5:01 am by Rocky
» Al-Sudani assures the French ambassador of Iraq’s openness to “fruitful” partnerships
Yesterday at 5:00 am by Rocky
» Government move to install gold screening devices at 4 airports
Yesterday at 4:59 am by Rocky
» Sudanese Advisor: The oil sector is witnessing a rapid renaissance
Yesterday at 4:58 am by Rocky
» Opening offices specialized in employing people with disabilities
Yesterday at 4:57 am by Rocky
» Infrastructure and investment projects for the water sector in Iraq
Yesterday at 4:56 am by Rocky
» Adopting the electronic system in the next census
Yesterday at 4:55 am by Rocky
» Al-Sudani chairs the first meeting to restructure the government apparatus
Yesterday at 4:54 am by Rocky
» Business Council: Efforts to open a branch of the Chinese Bank in Iraq
Yesterday at 4:53 am by Rocky
» Iraqi diplomacy is balanced openness
Yesterday at 4:52 am by Rocky
» The head of the Integrity Commission told Al-Sabah: We are the people’s eyes on the government and s
Yesterday at 4:51 am by Rocky
» Baghdad Provincial Council: The capital is facing a new urban and service phase
Yesterday at 4:49 am by Rocky
» Customs, security and economic aspects
Yesterday at 4:48 am by Rocky
» Central Governor: We face “increasing challenges” in complying with international laws
Yesterday at 4:48 am by Rocky
» Payment of end-of-service benefits to employees referred to retirement for the month of May
Yesterday at 4:46 am by Rocky
» Billions “evaporated”.. What is the truth about closing the “theft of the century” file in Diyala?
Yesterday at 4:45 am by Rocky
» The Minister of Labor approves the extinguishment of debts owed by transgressors from the families o
Yesterday at 4:43 am by Rocky
» How did Washington comment on Nechirvan Barzani's visit to Tehran?
Yesterday at 4:42 am by Rocky
» The honeymoon is over and the salary crisis continues. Baghdad and Erbil exchange accusations, but s
Yesterday at 4:41 am by Rocky
» Why has Iraq not submitted a file to stop burning gas over the past years?
Yesterday at 4:39 am by Rocky
» A slight increase in the exchange rate...more than 146 thousand per 100 dollars
Yesterday at 4:38 am by Rocky
» Do Iraq's debts pose a threat to the economy? Parliament answers
Yesterday at 4:37 am by Rocky
» Agriculture explains the mechanism of implementing the calendar program and its economic gains
Yesterday at 4:36 am by Rocky
» President Masoud Barzani meets an Iraqi parliamentary delegation
Yesterday at 4:34 am by Rocky
» Parliamentary criticism of the government’s delay in sending the budget schedules despite the approa
Yesterday at 4:33 am by Rocky
» A report reveals the existence of an undeclared “Iraqi-British” agreement regarding asylum seekers
Yesterday at 4:32 am by Rocky
» Alternative energy... advanced stages of the largest solar energy station in Iraq
Yesterday at 4:31 am by Rocky
» Its delay raised concerns... it is likely that the 2024 budget schedules will be approved today
Yesterday at 4:30 am by Rocky
» The industry reveals the reasons why Russian companies stopped reconstructing 7 factories in Anbar
Yesterday at 4:29 am by Rocky
» Billions evaporated.. What is the truth about closing the theft of the century file in Diyala?
Yesterday at 4:28 am by Rocky
» Nouri Al-Maliki to the Saudi Ambassador: Iraq is open to all countries of the world
Yesterday at 4:26 am by Rocky
» An Iraqi generation that “does not fear” America and Iran.. Nadim Al-Jabri explains his expectations
Yesterday at 4:25 am by Rocky
» After 9 years.. the third session of the Trade and Investment Framework Agreement between Iraq and A
Yesterday at 4:22 am by Rocky
» “These are our goals.” The Turkish President talks about his visit to Iraq last month
Yesterday at 4:21 am by Rocky
» Romanowski: The Iraqi judiciary is independent and the Federal Court seeks to consolidate democracy
Yesterday at 4:19 am by Rocky
» Deputy: The presidency of Parliament will remain vacant until the end of the current session
Yesterday at 4:17 am by Rocky
» Political: The Iraqi economy is threatened by American hegemony because of the coordination administ
Yesterday at 4:16 am by Rocky
» Politician: Salem Al-Issawi will not become Speaker of Parliament
Yesterday at 4:15 am by Rocky
» Planning reveals the mechanism for examining gold in local markets
Yesterday at 4:14 am by Rocky
» Including railway connectivity and water shares... Iraq and Iran are discussing a number of common i
Yesterday at 4:12 am by Rocky
» Oil is preparing to export gas oil after achieving self-sufficiency
Yesterday at 4:11 am by Rocky
» Trade is preparing to hold a number of specialized exhibitions in Baghdad and the provinces
Yesterday at 4:09 am by Rocky
» Erdogan: Our goal is to raise the volume of trade with Iraq to more than 20 billion dollars
Yesterday at 4:08 am by Rocky
» Al-Sudani confirms Iraq's openness to fruitful partnerships with French companies
Yesterday at 4:07 am by Rocky
» Determining the launch date for the activities of the 48th session of the Baghdad International Fair
Yesterday at 4:06 am by Rocky
» Al-Sudani receives a delegation from the Union of Arab Banks
Yesterday at 4:05 am by Rocky
» utube 5/3/24 MM&C Iraq Dinar Update - Expectation - Implementation - Activation - New Exchange Rat
Mon 06 May 2024, 7:30 am by Rocky
» “Services” asks the Central Bank about billions of foreign banks in Iraq
Mon 06 May 2024, 7:27 am by Rocky
» Central Bank: Iraqi banks still face challenges in complying with international laws and standards
Mon 06 May 2024, 7:24 am by Rocky
» Parliamentary bloc: The Central Bank offers hard currency to “mafias” on a golden platter.. The Suda
Mon 06 May 2024, 7:20 am by Rocky
» The Iraqi Central Auction witnesses a rise in foreign remittances to $267 million
Mon 06 May 2024, 7:19 am by Rocky
» Wednesday.. The session to elect the President of the Iraqi Parliament is heading towards “Al-Issawi
Mon 06 May 2024, 7:14 am by Rocky
» The Union of Arab Banks proposes 4 “important” points for Iraqi banks to meet compliance standards
Mon 06 May 2024, 7:12 am by Rocky
» In the document... the Central Bank decides to return the “Al-Mal” Bank to work... in this case
Mon 06 May 2024, 7:08 am by Rocky
» The Iraqi-American agreements and cooperation were the most prominent topics of Al-Araji and Romanow
Mon 06 May 2024, 7:06 am by Rocky
» Al-Hakim meets a joint delegation of resolve and sovereignty and renews the call to hold a session t
Mon 06 May 2024, 7:05 am by Rocky
» Nearly one billion dinars were recovered and 3 million liters of fuel intended for smuggling in Iraq
Mon 06 May 2024, 7:03 am by Rocky
» Al-Sudani and the European Union ambassador discuss issues of economic partnerships, civil aviation,
Mon 06 May 2024, 6:59 am by Rocky
» More than 950 million dinars... petroleum products announced their recovery
Mon 06 May 2024, 6:57 am by Rocky
» Forming a committee to follow up on stopping the sale of the dollar to travelers
Mon 06 May 2024, 6:54 am by Rocky
» The Minister of Justice visits Al-Muthanna Governorate to discuss mechanisms for developing judicial
Mon 06 May 2024, 6:52 am by Rocky
» Agriculture: Farmers who were affected by the recent rains will be compensated
Mon 06 May 2024, 6:51 am by Rocky
» Al-Rasheed issues a warning regarding applying for advances and loans
Mon 06 May 2024, 6:49 am by Rocky
» Al-Rafidain announces the implementation of the comprehensive banking system in its main branch
Mon 06 May 2024, 5:24 am by Rocky
» Al-Rasheed warns of offices and pages claiming to promote the Salaf
Mon 06 May 2024, 5:22 am by Rocky
» Adviser to the Prime Minister: There are no conflicts in the route of the Baghdad Metro
Mon 06 May 2024, 5:19 am by Rocky
» Al-Sudani: We are keen to develop the work of the TBI Bank and address the problems it faces
Mon 06 May 2024, 5:18 am by Rocky
» Agriculture explains the mechanism of implementing the calendar program and its economic gains
Mon 06 May 2024, 5:17 am by Rocky
» “The shocks have changed.” The Governor of the Central Bank explains the impact of the openness of I
Mon 06 May 2024, 5:16 am by Rocky
» The President of the Association of Private Banks sends an “important” invitation to the Central Ban
Mon 06 May 2024, 5:15 am by Rocky
» Al-Alaq: The Iraqi banking sector has witnessed significant qualitative developments in response to
Mon 06 May 2024, 5:12 am by Rocky
» On behalf of Al-Sudani, the Minister of Planning sponsors the signing ceremony of a memorandum of un
Mon 06 May 2024, 5:11 am by Rocky
» The Iraqi Travel Companies Association participates in the Arab Travel Market Exhibition
Mon 06 May 2024, 5:10 am by Rocky