What is Bitcoin Halving Event, will Bitcoin investors get bumper earnings this time also?

Business Desk, New Delhi. For the last few months, the world’s oldest and most prestigious cryptocurrency Bitcoin was showing a steady rise. In March, it also reached its all-time high level, which is $71,263.78.

But, now Bitcoin has been continuously falling for the last few days. It has fallen by about 6 percent in a month to the level of $64,014.40. The main reason for this is being said to be the increasing global crisis due to Israel and Iran conflict.

However, cryptocurrency experts believe that after the Bitcoin Halving Event, its prices may again see a huge rise.

What is bitcoin holding?

Bitcoin is a digital currency. It is not printed in physical form like coins or notes. It is stored electronically. It is made through a technical computer process, which is called mining. And the people who extract bitcoins by mining are called ‘miners’.

Now talking about halving, it means making changes to the basic blockchain technology of Bitcoin. Its purpose is to reduce the speed of creating new bitcoins. Actually, Satoshi Nakamoto, the creator of Bitcoin, has designed this digital currency in a special way. Only 21 million tokens can be mined.

If Bitcoin continues to be mined at a rapid rate, it will run out very quickly. This is the reason why a halving event has been created to slow down the speed of its mining, after which the reward is halved.

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When does Bitcoin halving occur?

There is no fixed date for Bitcoin holding. But this usually happens after four years. The next event is coming soon. This will be the fourth halving event in the history of Bitcoin. In early 2012, the reward was reduced from $50 to $25.

If we talk about the current halving event, the reward will further reduce to $3.125. This event is expected to continue till the year 2041. At that time all the Bitcoins present in the system will be mined.

What is the effect of hawing?

Bitcoin halving event has a positive impact on the cryptocurrency market. Actually, after hawing the supply in the market reduces. And then here comes the supply-demand formula. Meaning that the less the supply, the higher the price. There is also an influx of new investors in this cryptocurrency market.

If we look at all the previous halving events, every time there has been a historic surge in prices. Before the halving in 2016, the price of Bitcoin was around $780. But, after the halving event it crossed $1,000 within a few months.

At the same time, in 2020 too, after the halving event, there was a tremendous increase in the rate of Bitcoin. Bitcoin also set its new all-time high record in November 2021, 11 months after the halving. Before halving its price was $9,485, which reached $69,000 after halving. There was a similar scene after the howling events of 2009 and 2012.

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