Bitcoin Halving Takes Place, Defying Age of Monetary Printing and Currency Devaluation With
Bitcoin has successfully undergone a highly anticipated event called the halving, which is a programmed and systematic occurrence. This event occurs approximately every four years and involves cutting the Bitcoin reward that miners receive in half. As a result, the supply of new BTC entering the market is reduced.
The mining reward for each block has now decreased from 6.25 BTC to 3.125 BTC. It is important to note that the halving does not directly impact the price of BTC and is not comparable to a stock split. Rather, it serves to emphasize Bitcoin’s scarcity, its diminishing inflation rate, and its gradual approach towards reaching its maximum supply of 21 million BTC.
This time around, supporters of cryptocurrencies have coined the term “quantitative tightening” to describe the halving. This phrase highlights the ways in which Bitcoin stands out as a hard, predictable, transparent, and scarce asset in a time of quantitative easing, money printing, and currency depreciation.
Interestingly, Bitcoin’s price has experienced significant growth in the months following its previous three halvings. This may be attributed to a coincidence, correlation, or the natural progression of the macro business cycle.
In a notable development, BTC achieved a new all-time high of $73,737 on March 14th before the halving, breaking its previous record. This achievement can be partly attributed to the rapid rise of Bitcoin ETFs in the United States.
However, in the past week, Bitcoin, along with traditional assets, has retraced significantly due to a de-risking event triggered by tensions between Israel and Iran. At the time of writing, BTC is trading at $63,811, showing a 0.7% increase in the last 24 hours.
To stay updated, it is recommended to subscribe for email alerts or follow the latest price action on platforms such as Twitter, Facebook, and Telegram.
Disclaimer: The opinions expressed in this article by The Daily Hodl do not constitute investment advice. Investors are advised to conduct thorough research before engaging in high-risk investments involving Bitcoin, cryptocurrencies, or digital assets. It is important to bear in mind that any transfers or trades made are done at one’s own risk, and any losses incurred are the sole responsibility of the individual. The Daily Hodl does not endorse the buying or selling of cryptocurrencies or digital assets, nor does it provide investment advisory services. Please note that The Daily Hodl may participate in affiliate marketing.
Featured Image: Shutterstock/Antonov Serg/Nikelser Kate