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Bitcoin Halving Effect!

mahmudul01 - 2024-03-20 08:11:42



Assalamu Alaikum





How are you all I hope you are well by the infinite mercy of the Most Merciful Creator.  Today we will discuss Bitcoin Halving Effect! I will try to make a short informative discussion today.

![pexels-photo-7567430 (1).jpeg](https://cdn.steemitimages.com/DQmS1dXxqfxuB5dFtWxbPDecC35kqunPisr6jrazzj6ztie/pexels-photo-7567430%20(1).jpeg)
[Source](https://www.pexels.com/photo/bitcoin-on-person-s-hand-7567430/)
One of the main ideas behind halving awards is to address inflationary concerns.  Inflation is a decrease in the amount of goods that a given amount of currency can buy at any given moment.  In the United States, inflation is measured by how much it costs to buy a basket of goods.  There is an acceptable inflation rate that is considered good for an economy—usually 2%—but this number is usually set as a target rather than a target set by the central bank.
The purpose of Bitcoin halving is to counter any inflationary effects on Bitcoin by reducing reward amounts and maintaining scarcity.  However, this inflation "protection" approach does not protect Bitcoin users from the effects of inflation of the fiat currency that must be converted to use it in the economy.
Market value gains may provide inflation protection for investors, but not for the intended use of cryptocurrency as a payment method.

![pexels-photo-6777570.jpeg](https://cdn.steemitimages.com/DQmVhG4HfSu12q8ERm93PBaVTCWJPjJrc9vEbp1Uo2NCeFD/pexels-photo-6777570.jpeg)
[Source](https://www.pexels.com/photo/close-up-photo-of-four-bitcoins-6777570/)
Demand:
Since halvings reduce the number of new bitcoins, the demand for new bitcoins generally increases.  This can be observed by looking at the price of Bitcoin after each previous halving event—it has generally risen.
Investing:
Bitcoin was not intended as an investment.  It was introduced as a payment method that sought to eliminate the need for regulatory bodies or third parties involved in transactions.
It became popular with investors when it was noted that there was potential for profit.  Investors poured into the new asset space, creating demand that the cryptocurrency's designers did not anticipate.  For investors, a halving represents a reduction in the supply of new coins, but it also promises an increase in investment value if the event's impact is the same.  But this makes investing in Bitcoin speculative as those who have invested in the cryptocurrency expect to make a profit.
Today's discussion ends here.  I hope you find it interesting and understandable.  Share your thoughts on today's topic.  Greetings and blessings to all.  Stay well everyone, stay healthy, stay tuned to Steemit.

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