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A Bitcoin halving event occurs approximately every four years, reducing the block reward miners receive for validating transactions by 50%. This reduction in supply creation decreases the rate at which new bitcoins enter circulation, making Bitcoin more scarce. Historically, halvings have been followed by price increases as the market anticipates reduced supply, assuming demand remains steady or grows. However, halvings can also create short-term volatility as miners adjust to lower rewards. While the halving does not directly guarantee price increases, it plays a pivotal role in Bitcoin's deflationary nature and often triggers bullish sentiment in the market due to expectations of future scarcity.
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