Sunday, December 6, 2020
Home > Cryptocurrency > BIGGEST EVENT OF THE YEAR: BITCOINS ‘ HALVING ’ VERY SOON

BIGGEST EVENT OF THE YEAR: BITCOINS ‘ HALVING ’ VERY SOON

Bitcoins have been in the news since they first came into being. Since then, we have kept up with the ups and downs that the cryptocurrency market has faced. Now, the biggest news of the year is out and the year has just started. It would come as a shock to all those who follow up with the exchange, that it coins will come down to half the number they are right now

The effect of the big change in cryptocurrency

There are many forms of online currencies and bitcoins are one of those. As most of you must know, bitcoins can’t be affected by one person alone like our usual banking system is. Then, how can bitcoins come down to half their number?

The answer to this question is that it is a rule written by the creator of the bitcoins when they were created by him ten years back. All of us can expect the halving process to take place in the month of May this year.

 

The current bitcoin market is worth $120 billion,and this will come down to half this year since billions are also created every year. People who know how to invest in bitcoin would be expecting drops and increases in the price very soon.It is something that is done to control inflation and isn’t really a new concept since it is done every four years in smaller amounts.

Currently, all sellers and buyers are trying to predict the future of bitcoins so that they can make the safest decisions.

Economists against the change, why?

Bitcoins have never been really accepted by economists because of the simple logic that the real world of money is based on. The rules say that if supply goes down without any change in demand, prices go up instantly.

In the world of cryptocurrency, none of these rules applies because the value is decided by the computers and the calculations done through it, not by the rules that apply because of basic economics. No one knows whether they will end up as losers or winners.

Save yourself from losing moneyduring the halving

The change that is bound to happen will affect some people adversely while for some,it will be a positive change for sure. It is mostly the miners who will be affected majorly here since the current number of bitcoin will come down to half.

As we have seen in the past two cases of halving, the prices have actually risen to almost 100 times of the current value. The same can be expected before,during and even after the halving takes place in May. People who are into trading of bitcoins will think of this as a great way to earn good money,but for miners who want the prices to be leveled, this surely won’t be pleasing.

Traders in bitcoin are happy because of the major amount of activity that the halving will bring forward in the market,but miners holding large amounts of bitcoins don’t want these fluctuations happening so soon. Best bet is to ensure you don’t lose money, even if you are not gaining any from the event happening in May.

David
David
David Scott is the head writer at TRI PR. He better part of his college life as a journalist for the college magazine. He still writes and he loves it.