Bitcoin’s long-anticipated “halving” is, depending on where you sit, a vital event that will burnish the cryptocurrency’s value as an increasingly scarce commodity, or little more than a technical change talked up by speculators to inflate its price. The halving comes after bitcoin hit an all-time high of $US73,803.25 in March, making a comeback from a plunge in 2022.The next bitcoin halving event will likely take place on April 20 .
The blockchain is designed so that a halving occurs every time 210,000 blocks are added to the chain – about every four years. The lower the supply of a commodity, all other things being equal, the more the price should rise when people try and buy more. Bitcoin is no different, they argue.The supply of bitcoin to the market is also largely down to crypto miners but the sector is opaque, with data on inventories and supplies scarce. If miners sell their reserves, that could pressure prices lower.
Establishing the reasons for a crypto rally is also hard, not least as there is far less transparency than in other markets.January approval of bitcoin ETFsBut in the speculative world of crypto trading, explanations for price changes can snowball into market narratives that become self-fulfilling.There’s no evidence to suggest that previous halvings have been behind bitcoin’s subsequent price rises.
Coin Coin Latest News, Coin Coin Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: theage - 🏆 8. / 77 Read more »
Source: brisbanetimes - 🏆 13. / 67 Read more »
Source: FinancialReview - 🏆 2. / 90 Read more »