We are now there, around April 20th the so-called halving will begin for bitcoin. It is a planned four-year update of the software that supports the structure of the cryptocurrency and which will reduce by half the number of bitcoins that computers participating in the virtual currency network receive as a reward […]
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We’re here now, the so-called halving will start for bitcoin around April 20th halving. It is an expected and four-year plan software update which supports the structure of the cryptocurrency and which ensures that the number of bitcoins is reduced by half that computers participating in the virtual currency network receive rewards for their operations to validate transactions that take place in the network. Put more simply. the quantity of new bitcoins placed on the market decreases. This is the fourth halving since 2012, wanted by the anonymous creator of bitcoin to maintain the maximum limit of 21 million “pieces” in circulation and prevent it from becoming inflationary as a currency. While waiting for this appointment, the most famous of digital currencies has lost some value from the peak, not far from the 74 thousand dollars, reached last March 14th. It is currently trading around $60,000. A movement that has dragged many of the “minor” cryptocurrencies downward with it.
In theory, the reduction of the supply of a currency (digital or otherwise) it should increase its value but the market, as always, anticipates. In short, the effects of the halving were already in last month’s record prices. The introduction at the beginning of the year of Bitcoin ETF which make investing in cryptocurrency much easier, they also make disinvestment much easier, so, after an initial push, the two things are destined to balance out. They will be the first to pay the price for the halving the so-called “miners”, i.e. the structures that produce bitcoins by putting armies of computers connected to each other to work. Basically, same job, pay reduced by half. According to some calculations it means a loss for the sector of around 10 billion dollars. Curious what happened to bitcoin during the Iranian attack on Israel of last April 13th. The cryptocurrency has registered the worst decline of the year coming to lose over 8%. In short, anything other than a safe haven, whether halved or not, bitcoin remains a highly speculative financial product. Nothing bad, just know.
Tags: Bitcoin time halving arrived weeks sharp declines collapse Iranian attack
