Anticipation for the Next Bitcoin Halving Grows
At the time of writing, we are now less than 80 days away from Bitcoin's fourth halving event, where the block reward will decrease from 6.25 bitcoins per block to 3.125 bitcoins per block post-halving. As is customary, market expectations have swelled, fueling speculation about whether the 2024 halving will diverge from its predecessors.
Scarcity Beckons as Proponents Hope History Repeats Its Famed Crypto Tale
Following the fourth halving, Bitcoin's scarcity will intensify, as the inflation rate will shift from the current 1.69% annually to a mere 0.84% per annum. Bitcoin enthusiasts have high expectations for this event, with the pseudonymous analyst known as Plan B asserting that BTC "will be scarcer than gold and real estate."
"It would surprise me if the bitcoin market cap, [which is less than $1 trillion], will stay below the gold market cap, [which is more than $10 trillion]," Plan B posted on X. "This implies a [bitcoin] price [of more than $500,000]."
Strategic advisor Mando CT, also recognized as the Xmaximist, chimed in with his insights regarding the impending halving event.
"History tends to repeat itself in the crypto world, and this time, there are extra factors that could push prices higher," Xmaximist posted to social media. "The Fed's interest rate hikes have halted, with cuts likely on the way. Plus, the approval of BTC ETFs makes it easier for retail investors to get in on the action." The strategic advisor added:
In summary, now's the time to get your halving strategy in order. With the proper preparation, you can make the most of this pivotal event in the crypto cycle.
Social Media Buzzes with Excitement
Social media is abuzz with a flurry of posts centering on the much-anticipated halving event, with enthusiasts eagerly marking off the days. Among these posts, some are adorned with charts, serving to dismiss BTC's recent price dip.
As Matt C aptly put it, "Bitcoin had its first -20% correction in almost a year and everyone panics. Find an OG of 2016 halving and ask if they even notice anymore." Meanwhile, some individuals mock those who choose to part with their BTC holdings before the grand event unfolds.
"Having fun selling precious scarce bitcoin at $43,000 right now – February 2024 – two months before the fourth Bitcoin halving, LMAO," another individual wrote. At press time, less than 11,260 blocks are left until the halving occurs.
Conclusion
The countdown to Bitcoin's fourth halving event is well underway, and anticipation is building in the crypto community. With the upcoming decrease in block rewards, Bitcoin's scarcity will increase, potentially driving up its value. As history has shown, halving events have had a significant impact on Bitcoin's price, and many enthusiasts are optimistic about the potential for further growth. Whether or not the 2024 halving will follow the pattern of its predecessors remains to be seen, but one thing is certain: the crypto economy is in for a shift as this pivotal event approaches.
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How To
The History of Gold as an Asset
From the beginning of history, gold was a popular currency. It was universally accepted and loved for its beauty, durability, purity and divisibility. In addition, because of its value, it was traded internationally. There were different measures and weights for gold, as there was no standard to measure it. For example, one pound sterling in England equals 24 carats; one livre tournois equals 25 carats; one mark equals 28 carats; and so on.
In the 1860s, the United States began issuing American coins made up of 90% copper, 10% zinc, and 0.942 fine gold. This led to a decrease of demand for foreign currencies which in turn caused their prices to rise. This was when the United States started minting large quantities of gold coins. The result? Gold prices began to fall. Because the U.S. government had too much money coming into circulation, they needed to find a way to pay off some debt. To do so, they decided to sell some of the excess gold back to Europe.
Since most European countries were not confident in the U.S. dollar they began accepting gold as payment. After World War I, however, many European countries started using paper money to replace gold. The price of gold has risen significantly since then. Today, although the price fluctuates, gold remains one of the safest investments you can make.
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By: Jamie Redman
Title: Countdown to Bitcoin’s Fourth Halving: A Shift in the Crypto Economy Looms
Sourced From: news.bitcoin.com/countdown-to-bitcoins-fourth-halving-a-shift-in-the-crypto-economy-looms/
Published Date: Sat, 03 Feb 2024 17:30:59 +0000
