The famous cryptocurrency, Bitcoin, has gained almost 200%\nsince the beginning of this year. There are many theories about why this rise\nand one of these theories is gaining traction.<\/p>\n\n\n\n
Halvening is the event in which the rewards for so-called\nmining workers are reduced by half. To understand what this means, it is\nimportant to know how the blockchain works.<\/p>\n\n\n\n
Miners with powerful computers are competing to solve\ncomplex math problems to validate the validity of the bitcoin transactions.\nEveryone who wins this race gets a reward in Bitcoin.<\/p>\n\n\n\n
Currently, the number of miners is rewarded in stands at\n12.5. Rewards are reduced by half every few years to keep a lid on inflation.\nBy May 2020 experts say, the reward per worker will be reduced in half again to\n6.25 new Bitcoins.<\/p>\n\n\n\n
Bitcoin’s current inflation rate is about 3.76%. “In\nMay next year it is set to be reduced to 1.8%.” , according to market\nanalists.<\/p>\n\n\n\n
This process takes place almost every four years. This is\nbecause of a rule in the Bitcoin software, created by Satoshi Nakamoto, the\nunknown person or people who created Bitcoin. One of the main advantages of Bitcoin\nis the ability to predict about the new supply being issued.<\/p>\n\n\n\n
Bitquin is often referred to as “digital gold” due\nto its supply dynamics and liquidity. Experts say the value of the cryptocurrency\nis supported by the scarcity of the total number of existing Bitcoins. Bitcoin\nhas a cap at 21 million coins being minted. About 80% of this figure has\nalready been extracted, and the hard cap will not be reached for another 120\nyears.<\/p>\n\n\n\n
How can prices be affected by this?<\/strong><\/p>\n\n\n\n Traders see the possibility of growth with such an event, as\nit eventually leads to a decline in supply, leading to a rise in the price of\ndigital asset. The tightening of supply is pushing the price higher and the\nanticipation of a drop in liquidity in the market. The digital currency has\nrecently reached its highest level in 15 months.<\/p>\n\n\n\n The could be an uncertain event for the Bitcoin miners, considering\nthere would be “clean out” of the less competitive mining equipment\n“on which the price is correlated. ” A shift in demand for newly mined\nBitcoin, and the lack of coming onto the market can be expected to rise the\nprice of Bitcoin.<\/p>\n\n\n\n As we mentioned earlier, there are a number of other\ntheories about why the price of this year’s Betcairn has risen, along the way\nof investors using it as a hedge in the midst of the US-China trade war, along\nwith Facebook creating its own encryption currency.<\/p>\n\n\n\n Now Bitcoin has passed the price of $11,000, and it has\nearned more love by investors this year. But the picture was less rosy last\nyear, with the cryptocurrency dropping more than 70%. This came on the back of\na record high of close to $20,000 in late 2017.<\/p>\n","protected":false},"excerpt":{"rendered":" The famous cryptocurrency, Bitcoin, has gained almost 200% since the beginning of this year. There are many theories about why this rise and one of these theories is gaining traction. Halvening is the event in […]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":1259,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[16,60,97,17,36,34,67,114,120,48,24,68,131,102,109,115],"_links":{"self":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1258"}],"collection":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/comments?post=1258"}],"version-history":[{"count":1,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1258\/revisions"}],"predecessor-version":[{"id":1260,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1258\/revisions\/1260"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media\/1259"}],"wp:attachment":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media?parent=1258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/categories?post=1258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/tags?post=1258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}