Gold rushes in the digital age are back in full swing. Cryptocurrency enthusiasts are excited about the next Bitcoin Halving around the corner.
An unprecedented 45 searches for “Bitcoin Halving” have been recorded in Google Trends, and by the end of April, analysts predict a perfect 100.
It is clear that BTC has gained mainstream popularity and is expected to have a significant impact on the market.
Bitcoin Halving: Observing the Impact of Supply Compression”
This halving focuses on maintaining scarcity, a fundamental concept underpinning the value of cryptocurrencies. Bitcoin’s halving aims to replicate the natural scarcity of precious metals like gold by limiting the total number of coins that will ever be released (capped at 21000000).
Based on this economic model, long-term holding is theoretically incentivized since future price increases are possible if supply decreases.
In the cryptocurrency’s code, the halving is pre-programmed for April 20th. It functions as a mechanism for supply regulation, halving the block reward for miners approximately every four years.
In simpler words, miners who use their computing power to verify BTC transactions will earn fewer BTC. This time, the reward will decrease from 6.25 Bitcoin to 3.125 BTC.
