Review on Bitcoin by Özgün A



Could halves help understand Bitcoin's price prediction?

Halving the block reward first affects the number of miners. In the past, we can say that this process has a positive effect on the Bitcoin price in the long run.

The total number of Bitcoins is 21 million. The halving is designed to prevent cryptocurrency inflation. Unlike central banks that can print cash at their discretion, the number of Bitcoins is limited. Thus it becomes more valuable.

About a year after previous injuries, Bitcoin rallies took place. After the first halving in 2012, the Bitcoin price surged to November 2013, setting a record $ 1,000. After the halving in 2016, Bitcoin began to rise on December 18, 2017, reaching an all-time high of $ 20,000, after which its price fell.

Previously, the block reward was 50 bitcoins and there was very little bitcoin. However, the previous two halves have already reduced the reward twice and are currently mined 12.5 Bitcoins per block. After the halving in May 2020, the block reward will drop to 6.25 Bitcoin.

We have said that the halving affects the miners. Many people come to the conclusion that mining costs, namely electricity and computing power, are no less than a prize. However, another part of the miners also takes into account the fact that as demand approaches the limits of the digital currency supply, demand increases as demand does not refuse to adopt.

Bitcoin's market value dominance

You can understand a lot about cryptocurrency just by looking at the indicator of its market cap. First and main conclusion: Bitcoin remains the main player in the cryptocurrency market. Its market share is about 55 percent, which is about three times its closest competitor Ethereum.

Since its inception, Bitcoin has maintained its leadership in terms of market capitalization due to the many positive aspects that arise with the cryptocurrency. Developers can reduce transaction fees, increase network scalability, etc. made important updates.

An indicator of market cap is not just a tool that allows you to quickly assess the value of a cryptocurrency. A solid market cap indicates the strength of a cryptocurrency.

Do you think Bitcoin will still rise?

There are several prerequisites for the Bitcoin price to rise. The first important and prolonged factor is market expectations before the halving. The second is the positive news history in recent days. Extremely good news is coming, which could cause a concentration of Chinese investors.

The third possible factor is the potential impact of major OTC sites. The plans of many major investors to enter the cryptocurrency market have been heard time and again. Especially big deals are able to keep their promises and withdraw from the deal after completion, which causes sharp declines.

What do you think about Bitcoin's future?