How does Bitcoin Halving impact the Bitcoin price?
economictimes.indiatimes.com
Every four years, the Bitcoin network undergoes a significant change known as "halving", a process that reduces the rewards for mining new blocks by half. This mechanism is built into Bitcoin’s protocol to control inflation and cap the total supply at 21 million coins. Halving events, therefore, are pivotal, highly anticipated occasions within the cryptocurrency community, often triggering speculation and market volatility.
The «stock-to-flow» ratio is a key concept used to measure the current supply of a commodity against the rate of new supply entering the market. For Bitcoin, each halving event markedly increases this ratio, underscoring its growing scarcity. This ratio is widely considered a crucial indicator of Bitcoin’s long-term valuation.
Often, this metric is compared to that of precious metals, such as gold, enhancing Bitcoin's image as the "digital gold" and reinforcing its role as a store of value for the digital era.
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The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors.
View Details»Halving Dips & Surges: Historical Price Analysis
Bitcoin's price trajectory often responds
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