Blockchain is the technology that has given us bitcoin, ethereum, hive, polygon, and, many other great projects to this world. We see different apps and games that we now use daily and that are now part of our life.
Play to earn, Write to earn, Stake to earn, and many more opportunities were given to us via blockchain technology. One more thing that is famous for crypto currencies is the gains that they are capable of giving to the people involved.
The gains too have a historical link and that is what we call halving for bitcoin. Bitcoin halving is a event where every fourth year the mining reward per block is reduced to half and this will continue to take place until all the bitcoin are mined.
Historical data have shown us that past three halvings of bitcoin have given us the unforgettable bull run that amazed us with massive gains. From being worhtless to going 250 dollars and continuing it gain to 68000 dollars is something we don't see happening.
It has become so powerful that bitcoin is now seen as a clear competitor of gold and people believe it will break that price point where bitcoin in supply will be worth more than gold on this planet.
So why do bitcoin halving really matters ? This blog is for the new comers and that is why i am trying to keep it very simple and i hope it will help the readers. So how non technincal people see halving ? They see it as a event after which bull run is expected to arrive.
The reality is that bitcoin mining takes alot of computation power and that is very costly, costly enough that a normal person can only think of running the mining for btc at their place.
So as halving arrives the amount miners use to earn per block will reduce and that is why we see bitcoin going up. Atleast i see it as one of the reasons why people are so much into mining btc even after knowing about the fact that the rewards will going to reduce after each halving.
So remember these three points :
Halving reduces the rewards per block and that means people earn less compared to what they use to earn before unless and until we consider and see the price of btc going up.
Halving effects the entire crypto market, specifically btc halving as that is the highest market cap crypto , the number 1.
Halving occurs once every fourth year and that happens with other crypto's as well.
Before i end writing this blog, i will like to clear one thing out. I have not adviced anyone to invest based on the halving, there are three historical datas with three previous halvings and if history repeats itself, we might see that happening again.
Do your research and then decide what you will do in this industry.
Thank You and Happy trading everyone.