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unpluggedfinancial · 2 days

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Bitcoin’s Dwindling Supply: The Halving Mechanism and Its Impact on Scarcity

Bitcoin is more than just a digital currency—it’s a groundbreaking financial system built around a unique feature: its limited supply. Unlike fiat currencies that can be printed endlessly, Bitcoin’s supply is capped at 21 million BTC. This scarcity is driven by Bitcoin's halving mechanism, a process that cuts the block rewards for miners in half approximately every four years. With each halving, the supply of new Bitcoin entering circulation decreases, creating a dynamic of growing demand and shrinking supply.

What is the Halving Mechanism?

The halving mechanism is embedded in Bitcoin's code and is designed to happen after every 210,000 blocks are mined, roughly every four years. This mechanism ensures that over time, fewer and fewer Bitcoin are produced, leading to increased scarcity. When Bitcoin was first launched in 2009, the reward for mining a block was 50 BTC. Since then, the block reward has been halved multiple times:

2012: The reward dropped to 25 BTC.

2016: It was halved again to 12.5 BTC.

2020: The reward shrunk to 6.25 BTC.

2024: Following the most recent halving, the block reward now stands at 3.125 BTC.

How the Halving Reduces Daily Bitcoin Supply

The halving mechanism significantly impacts the number of Bitcoin mined each day. In the beginning, with 50 BTC rewarded per block, approximately 7,200 BTC were mined daily. After each halving, this number dropped:

2012: About 3,600 BTC were mined daily.

2020: Roughly 900 BTC were mined per day.

2024: Currently, with a block reward of 3.125 BTC, only 450 BTC are mined daily.

As the block reward continues to shrink, the daily Bitcoin production will become even smaller. By 2036, 99% of all Bitcoin will have been mined, leaving only 1% of Bitcoin to be mined over the following century. This drastic reduction in new supply is one of the most important aspects of Bitcoin’s scarcity and long-term value.

The Economic Impact of Bitcoin’s Scarcity

Bitcoin's design ensures that its supply will only become scarcer over time, making it more valuable. Much like precious commodities such as gold, the limited availability of Bitcoin positions it as a deflationary asset—one whose value increases as supply tightens and demand rises. Each halving intensifies this dynamic, putting upward pressure on Bitcoin's price as fewer coins are available for purchase or use.

With the next halving scheduled for 2028, Bitcoin’s daily production will fall to 225 BTC per day. By the time the final Bitcoin is mined, around the year 2140, the block reward will be reduced to just one satoshi—the smallest unit of Bitcoin, equivalent to 0.00000001 BTC. At this point, miners will no longer receive new Bitcoin as rewards, but they will be compensated with transaction fees to continue securing the network.

The Future of Bitcoin’s Supply: What Happens After 99% is Mined?

By the year 2036, we will have reached a major milestone—99% of all Bitcoin will have been mined. As we approach this point, the effects of Bitcoin's diminishing supply will become increasingly apparent. As supply decreases, demand is expected to grow, especially as more institutional investors and governments begin to adopt Bitcoin as a reserve asset.

After 2036, only 1% of Bitcoin will remain to be mined, with rewards decreasing at an exponential rate after each subsequent halving. As we move closer to the final halving and the ultimate limit of 21 million BTC, Bitcoin’s value as a scarce, deflationary asset will likely continue to grow, making it a critical store of value for individuals, institutions, and possibly even nation-states.

Bitcoin’s Halving and Its Role in Financial Sovereignty

The halving mechanism is more than just a technical feature—it is the foundation of Bitcoin's scarcity, which gives it its revolutionary potential. With fiat currencies facing the constant threat of inflation due to excessive money printing, Bitcoin stands out as a deflationary alternative that cannot be devalued by any central authority. Its predictable supply schedule makes it a safe haven for those seeking financial sovereignty and protection against inflationary pressures.

As Bitcoin’s supply dwindles, its role in the global financial system will only become more prominent. The halving mechanism ensures that Bitcoin remains scarce, creating a unique economic environment where supply and demand dynamics continuously drive its value higher.

Conclusion: The Power of Bitcoin’s Scarcity

Bitcoin’s halving mechanism is a crucial factor in its long-term success as a deflationary, scarce asset. Each halving reduces the number of new Bitcoin introduced into circulation, making the asset more valuable over time. As we move closer to the year 2036, when 99% of all Bitcoin will have been mined, the scarcity narrative will become even more pronounced. With the final reward being just one satoshi, Bitcoin’s hard cap of 21 million BTC guarantees its place as one of the most scarce and valuable financial assets in the world.

In a world of ever-expanding fiat currencies and government-controlled financial systems, Bitcoin offers a new way forward—a scarce, decentralized, and deflationary asset that empowers individuals with true financial sovereignty.

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bitcoincables · 10 months

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Understanding the Impact of Bitcoin Halving on Investors

The upcoming Bitcoin halving: the event where the rewards for Bitcoin miners will be cut in half. It's an important event for miners and holds significance for investors as well. After the halving, miners will be rewarded with 3.125 BTC for each block processed instead of the current rate of 6.25 BTC. The purpose of this halving is to control Bitcoin inflation. While the exact date is uncertain, previous halvings have led to price increases and it is expected that retail investors should pay attention to this event. 🪙

The Bitcoin halving has gained a lot of attention due to increased interest in the cryptocurrency industry, especially from institutions. Since the last halving, Bitcoin's price has risen significantly and it has become more mainstream. Historically, halvings have been followed by price surges. Analysts predict that a potential approval of a Bitcoin exchange-traded fund (ETF) combined with the halving could lead to a "craziest bull run of all time." 💰

However, it's important to note that Bitcoin is a volatile asset and the relatively illiquid market may deter traditional investors. The recent crash in Bitcoin's price, along with increased scrutiny from regulators, might make some investors hesitant to enter the market. Nevertheless, there are alternative ways for investors to gain exposure to Bitcoin, such as investing in publicly traded mining companies. Some experts believe that the halving has a bullish effect on Bitcoin's price, while others argue that there is no concrete proof of this. Overall, the halving primarily impacts miners, who will closely monitor the event. 📉

To read the original article, click here.

#Bitcoin #cryptocurrency #investment #Bitcoin-halving

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ecosmining · 1 month

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What is the bitcoin halving 2024

Bitcoin Halving Explained: History, Future Predictions, and Economic Impact

Bitcoin halving is a critical event in the cryptocurrency world. It impacts Bitcoin’s supply and market dynamics. This article explores its history, future predictions, and economic implications.

Understanding Bitcoin Halving

Explanation and Function

The halving process is essential. It governs the issuance of Bitcoin. Total issuance is capped at 21 million bitcoins. Halving guarantees a gradual issuance. This reflects the scarcity of precious metals.

Bitcoin works on a blockchain. Miners confirm transactions and add them to the ledger. They try to solve complex mathematical problems. The first to solve them receives the block reward. Halving reduces this reward.

Miners are crucial to the bitcoin network. They use powerful computers to solve these problems. This process is known as mining. When a miner solves a problem, they add a new block to the blockchain. This block contains a list of recent transactions. The miner is paid a block reward.

As the block reward decreases, the rate at which new bitcoins are created slows. This regulated issuance mechanism is similar to gold mining. Over time, it becomes harder to mine new bitcoins, just as it becomes harder to mine new gold. This restricted supply increases the value of Bitcoin.

Bitcoin halving also affects the mining sector. With each halving, the mining reward decreases. Miners earn less for the same effort. They need to be efficient and use advanced technology to remain profitable. The cost of electricity and hardware has a significant impact on their profitability.

Importance of Bitcoin Halving

Bitcoin halving has multiple crucial effects:

Supply Limitation: Halving cuts new Bitcoin issuance.

Inflation Check: Mitigates inflation by constraining supply.

Market Influence: Often initiates price rises.

Economic Paradigm: Similar to gold — constrained supply drives value.

Digital Gold: Bitcoin is frequently called digital gold.

Deflationary Mechanism: Creates a deflationary asset, drawing investors.

Economic Framework and Market Effects

Halving events are fundamental to bitcoin’s economic framework. They maintain a fixed supply, unlike conventional fiat currencies that can be printed endlessly. This fixed supply makes Bitcoin an attractive store of value. Many investors compare Bitcoin to digital gold because of its scarcity and deflationary characteristics.

The market effect of halving the supply is significant. Historically, the price of Bitcoin has risen sharply after each halving. The decrease in new issuance creates a scarcity effect. When demand remains stable or increases, prices tend to rise. This has been the case for the last three halves.

The deflationary nature of Bitcoin is another important aspect. Unlike fiat currencies, which lose value over time due to inflation, Bitcoin’s controlled issuance leads to an increase in value. This attracts long-term investors seeking an inflation hedge. As Bitcoin adoption grows, its value is likely to rise further.

Historical Context of Bitcoin Halving

First Halving (2012)

The first halving took place on 28 November 2012. It reduced the block reward from 50 to 25 bitcoins. This event was a significant milestone. Satoshi Nakamoto’s design proved effective. The price reaction was remarkable. The price of Bitcoin rose from $12 to over $200 within a year.

The first halving tested the economic model of Bitcoin. It demonstrated the ability of the halving mechanism to regulate supply. Miners continued to work despite the reduced reward. The price increase incentivized them to keep mining.

Second Halving (2016)

The second halving took place on 9 July 2016. The reward dropped from 25 to 12.5 bitcoins. This period saw remarkable market growth. As one expert noted, “The 2016 halving increased mainstream acceptance.” The price jumped from $650 to $20,000 by the end of 2017.

The second halving brought Bitcoin into the mainstream. More individuals started to invest in BTC. The increased demand drove the price up significantly. This period also saw the rise of other cryptocurrencies. The whole market expanded, with Bitcoin at the forefront.

Third Halving (2020)

The third halving took place on 11 May 2020. The reward was reduced to 6.25 bitcoins. Institutional investment increased during this period. COVID-19 affected global markets. Despite this, bitcoin’s network security remained robust. Market sentiment was bullish. The price jumped from $8,000 to over $60,000 in 2021.

The third halving took place during an extraordinary period. The COVID-19 pandemic disrupted economies around the world. Despite this, Bitcoin flourished. Institutional investors, including corporations and hedge funds, began to buy BTC. This boosted credibility and drove up the price.

Fourth Halving (2024)

The fourth Bitcoin halving, which occurred in April 2024, has already set the stage for potential future price surges. Despite some initial market hesitation, many analysts remain highly optimistic. Historically, each halving has been followed by a significant price rally, and this time may be no different. Some experts even predict that Bitcoin could reach astonishing new highs, with forecasts ranging from $100,000 to as much as $240,000 by the end of the cycle.

For miners, the reduction in rewards to 3.125 BTC presents challenges, especially as mining difficulty continues to rise. However, with powerful technology like the ASIC S21 234 Th/s available at ECOS on unprecedentedly favorable terms — whether through purchase, cloud mining contracts and miner rental — miners can still remain profitable even after this halving.

Future Predictions

Next Halving Date (2028)

The next halving is expected in 2028. The reward will fall to 1.5625 bitcoins. Predictions vary. Some predict market stability. Others predict significant price volatility. Long-term forecasts point to sustained interest. Supply dynamics will be crucial.

The 2028 halving will further reduce Bitcoin supply. This event will test Bitcoin’s resilience. Market stability will depend on several factors. Investor interest, mining technology and regulatory developments will influence the outcome.

Long-Term Outlook (Until 2140)

The final halving of Bitcoin will occur around 2140. The total supply will reach 21 million. This finite resource model appeals to investors. The long-term outlook is bullish. As supply decreases, scarcity increases. Future implications include higher value and sustained interest.

Bitcoin’s design ensures limited supply. This makes it a unique asset. Unlike fiat currencies, BTC cannot be printed indefinitely. The final halving will be an important milestone. By then, Bitcoin’s role in the global economy will be well established. Its value should rise as scarcity increases.

Impact of Bitcoin Halving

Economic Implications

Bitcoin halving has profound economic implications. It controls supply and influences demand. Price trends typically follow a post-halving spike. This attracts new investors. The principle of scarcity applies. Limited supply increases value. Bitcoin is considered a deflationary asset. This distinguishes it from traditional currencies.

Halving events shape Bitcoin’s market dynamics. Each halving event slows the rate at which new bitcoins are introduced. This controlled supply mechanism makes Bitcoin an attractive investment. As demand remains constant or increases, the reduced supply leads to higher prices. Investors see bitcoin as a hedge against inflation and a store of value.

Price Trends Post-Halving

Historical data shows price spikes after halving. After 2012, the price rose significantly. The 2016 halving followed a similar trend. The 2020 halving led to a dramatic increase. Market analysis shows a pattern of post-halving growth.

Post-halving price trends are significant. Each halving has been followed by significant price increases. In 2012, the price rose from $12 to over $200. In 2016, it rose from $650 to $20,000. In 2020, the price jumped from $8,000 to over $60,000. These trends highlight the impact of reduced supply on the value of bitcoin.

Scarcity and Value Appreciation

The limited supply of BTC creates scarcity. This increases its value over time. The dynamics of supply and demand play a key role. Market valuation increases with each halving. Investment potential increases as scarcity increases.

The scarcity principle is fundamental to the value of Bitcoin. As supply decreases, the remaining bitcoins become more valuable. Investors are attracted to this limited supply model. They see Bitcoin as a long-term store of value. Each halving increases this scarcity, driving up the price. This deflationary mechanism is unique to bitcoin.

Effects on Mining

Bitcoin halving directly affects miners. Reward reduction affects income. Miners have to adjust to lower rewards. This affects the profitability of mining. Operating costs remain, but rewards decrease.

Mining is critical to the bitcoin network. Miners validate transactions and secure the blockchain. Halving events reduces their rewards. This affects income. Miners need to use efficient technology to remain profitable. They also need to manage operational costs, such as electricity and hardware.

Reward Reduction

Each halving reduces the block reward. From 50 bitcoins initially to 3,125 in 2024. This affects miners’ income. Miners have to balance costs and rewards. The reward cycle influences mining decisions.

The reward reduction affects miner profitability. Initially, miners received 50 bitcoins per block. This has decreased over time. By 2024, it will be only 3.125 bitcoins. Miners need to adapt to these changes. They need efficient hardware and cheap electricity. The reward cycle plays a crucial role in the economics of mining.

Hashrate and Network Security

Hashrate is a key indicator of network security. It measures the total amount of computing power used for mining. After each halving, the hashrate often increases. This shows that the miners are committed to securing the network. The mining difficulty adjusts to ensure a balanced rate of new blocks. This keeps the network safe and resilient.

Bitcoin Halving Schedule and Dates

Bitcoin halving follows a predictable schedule. Past and future halving events are documented. The timeline shows key historical events. Each halving marks an important milestone. Future dates are anticipated with interest. The halving schedule is critical to market participants.

The timetable is well documented. Past events in 2012, 2016 and 2020 mark important milestones. Future halving events are expected in 2024, 2028 and beyond. These events are critical to the market dynamics of Bitcoin. Participants are closely watching their impact on supply and price. The timeline provides a roadmap for bitcoin’s economic model.

Conclusion

Summary of Key Points

Definition: Halving reduces block rewards.

Importance: Controls supply, limits inflation.

History: Significant events in 2012, 2016, 2020.

Future: Predictions for 2024 and beyond.

Impact: Affects price, mining, and market dynamics.

Halving Bitcoin is a critical event. It reduces block rewards and controls supply. This mechanism limits inflation and increases value. Historical events in 2012, 2016 and 2020 show significant impact. Future halving events in 2024 and beyond are being watched with interest. The economic impact on price, mining and market dynamics is profound.

A Bit of Imagination: The Future of BTC

Imagine a world where Bitcoin is commonplace. People use it for transactions every day. It’s integrated into financial systems around the world. BTC ATMs are as common as traditional ones. Digital wallets are replacing physical ones.

Bitcoin’s deflationary nature is its strength. Every halving event reinforces this. As supply falls, value rises. People see bitcoin as digital gold. It’s a hedge against economic uncertainty.

The future of Bitcoin is a mix of technology and finance. It represents freedom from traditional financial systems. A decentralized currency for a decentralized world. Bitcoin’s journey is ongoing. Every halving is a step forward.

In conclusion, the future of Bitcoin is bright and diverse. Halving events are shaping its path. Technological advances play an important role. Investor interest remains high. Regulatory developments are providing clarity. Despite uncertainties, the overall outlook is optimistic. Bitcoin will play a significant role in the future financial landscape.

https://l.ecos.finance/4dFsU2g

#bitcoin halving #bitcoin #mining #crypto #blockchain #cryptocurrency #defi

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blockinsider · 3 months

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Major 7.8% Decrease in Bitcoin Mining Difficulty Marks Biggest Fall Since FTX Crash

Key Points

Bitcoin’s mining difficulty has dropped significantly, potentially increasing profitability for miners.

The decrease is one of the steepest since the FTX collapse in December 2022.

Bitcoin’s mining difficulty has experienced a substantial decrease. This could provide some relief for miners, especially the smaller ones who have struggled following the recent halving event. This reduction in the computational power required to validate transactions could indicate a period of increased profitability for miners.

Bitcoin Mining Difficulty Reverts to Pre-Halving Levels

On June 5, the difficulty of Bitcoin mining fell by 7.8%. It dropped from 83.6 terahash per second (TH/s) to 79.50 TH/s, effectively returning to levels seen before the halving. This has sparked some optimism among miners. The Bitcoin network automatically adjusts its difficulty every two weeks to ensure a consistent block generation time of approximately 10 minutes.

The recent decline is among the most significant since the FTX collapse in December 2022. This event triggered a downward spiral in Bitcoin prices, with a 10% drop within a week. Analysts at CryptoQuant, a provider of crypto data, see a clear parallel.

Decrease in Mining Difficulty Provides Some Relief

A decrease in mining difficulty can lead to a reduction in the network’s overall hashing power. This change could benefit smaller miners, who may face less competition and potentially return to profitability. High difficulty levels had previously forced some miners to shut down their rigs as the cost of operation exceeded the earnings from rewards.

While a lower difficulty may provide temporary relief, it’s important to remember that miners have been a significant source of selling pressure on Bitcoin in June. Over two weeks, they sold over $1 billion worth of BTC as the price fluctuated between $65,000 and $70,000.

This selling pressure, along with other factors such as the ongoing Mt. Gox saga and a German government entity selling its Bitcoin holdings, further pressured the market. This resulted in the price dropping to a low of $53,500 last week.

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annajamessa · 3 months

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Bitcoin Runes Protocol and Memecoins: A Look into 2024's Crypto Landscape

2024 has been a transformative year for cryptocurrencies. The Bitcoin halving in April and the emergence of the Bitcoin Runes protocol, developed by Casey Rodarmor (the creator of the Bitcoin Ordinals protocol) has significantly influenced the landscape of memecoins. This blog explores the impact of Bitcoin Runes and the resurgence of memecoins in the crypto market.

Limitations of BRC-20 Highlighting the Urgency of Better Solution

No Smart Contract Functionality: BRC-20 lacks support for smart contracts, limiting its application scope.

Limited Interoperability: Challenges in interoperability with other blockchains and wallets.

Limited Utility: Primarily for fungible assets, less suitable for complex token features.

Network Congestion: Contributes to slower transactions and higher fees due to Bitcoin blockchain limitations.

Bitcoin Runes - An Overview

Bitcoin Runes simplifies fungible token creation on the Bitcoin blockchain without relying on Bitcoin Ordinals. Utilizing OP_RETURN and UTXO models, the Bitcoin Runes protocol enhances efficiency and reduces network load.

Advantages of Bitcoin Runes:

Simplicity: Offers a simple way for token creation and management.

Increased Efficiency: Uses OP_RETURN for efficient and secure token transactions.

Broader Use Cases: Help crate helps various tokens, including stablecoins, tokenized assets, and more.

Improved Security: Secure token creation and transaction process.

Impact of Bitcoin Runes on MemeCoin Growth

The launch of the Bitcoin Runes protocol sparked the creation of numerous cryptocurrencies, particularly Bitcoin runes memecoins, leveraging enhanced functionality and security. Factors driving this surge include accessibility, innovation, and market dynamics.

Top 5 Memecoins on the Rise with Bitcoin Runes in 2024

KangaMoon (KANG)

Doge Killer’s (LEASH)

Book of Meme (BOME)

Shiba Inu (SHIB)

Coq Inu (COQ)

Final Words

Bitcoin Runes protocol promises to enhance Bitcoin’s utility and performance. Consulting blockchain experts like Antier can provide deeper insights into Bitcoin Runes memecoins, and related protocols, navigating the evolving landscape effectively.

#blockchain #bitcoin news #memecoin #memecoins #runes protocol #crypto #web3

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coineagle · 3 months

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Understanding Bitcoin Miner Capitulation and Outflows’ Impact on BTC Value

Key Points

The Bitcoin miner capitulation might ease selling pressure on Bitcoin.

Metrics suggest a bullish trajectory for Bitcoin prices in the upcoming weeks.

The concept of Bitcoin miner capitulation is gaining momentum and is reminiscent of the scenario in December 2022.

Julio Moreno, CryptoQuant’s head of research, revealed a 7.6% hash rate drawdown in a post on X (previously Twitter).

Hash Rate and Price Fluctuations

It’s important to note that the drop in Bitcoin prices is not a direct result of the hash rate plunge. Instead, factors such as the halving effects, market sentiment, and miner cash requirements for equipment upgrades contribute to the price fluctuations.

For instance, these factors led to Bitcoin’s drop from $71k to $60k in June.

The hash rate, which measures the computational power of Bitcoin miners, was at 537.15 EH/s at the time of reporting.

Miner Capitulation: A Positive Sign?

The 7.6% hash rate drop mirrors the decrease that followed the FTX exchange collapse in November 2022 and the subsequent slump in market sentiment in December 2022.

Data from the miner profit/loss sustainability chart indicates that miners were significantly overpaid in early June. Conversely, two weeks later, they were heavily underpaid as Bitcoin prices had fallen by 16.2%.

At the moment, the sustainability metric is transitioning from extremely underpaid to fairly paid.

This shift does not necessarily signify a local bottom, but it suggests that miners might hold off on selling until prices improve.

Examining Miner Outflows

The Miners’ Position Index calculates a ratio using the 365-day moving average of the miners’ USD outflows and the current outflows.

This ratio provides insights into miner behavior, particularly whether they are sending more or less Bitcoin to exchanges.

Data shows that miner outflows were substantial in February and March, decreased slightly in April and May, and were relatively low in June. Thus, miners are sending fewer coins than usual to exchanges.

In conclusion, the hash rate drop supports the notion of miner capitulation. The MPI data suggests that miners have been liquidating fewer Bitcoin than usual, which could be a bullish sign in the long term.

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samdrews · 3 months

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The Bitcoin halving narrative remains significant and shouldn't be overlooked. The current lag in returns compared to previous cycles suggests the market hasn't fully processed this event and its implications. It's possible we may see a comparable price rise for Bitcoin as experienced after earlier halvings in the upcoming months.

Although the effects of the latest halving may take time to manifest, it's crucial to remember that the halving narrative has consistently influenced Bitcoin price movements since its inception. This factor should be considered when evaluating future price action.

Despite the lack of immediate results from the latest halving, Bitcoin's fundamentals remain robust. Its decentralized nature, low fees, and growing acceptance continue to attract investors and users. While the halving might not immediately boost the price, it could drive long-term adoption and value.

Currently, BTC/USD trades at $23,043. It's essential to stay vigilant and consider the underlying factors that support the cryptocurrency market before making significant decisions. The decentralized nature, low fees, and increasing acceptance of Bitcoin are crucial elements for its future growth and should be factored into any price movement assessments.

In conclusion, the halving narrative has been a key driver of Bitcoin's price since its inception, and its effects from the latest event will likely become evident in the coming months. Although there may not be an immediate impact, considering the halving narrative is vital when assessing future price action.

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allaboutforexworld · 3 months

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The Impact of Bitcoin Halving on Forex Markets

Bitcoin halving is a significant event in the cryptocurrency world. It occurs approximately every four years and results in the reduction of the reward for mining new blocks by half. This event has profound effects on the cryptocurrency market, and its impact is also felt in the forex markets. This article explores the impact of Bitcoin halving on forex markets, examining the factors involved and…

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#Bitcoin Halving Event #Bitcoin Price #Cryptocurrency #Forex Markets #Forex Trading #Impact of Bitcoin Halving #Market Sentiment #Risk Management #Trading Strategies #Volatility

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unpluggedfinancial · 12 days

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The Imminent Bitcoin Supply Shock: What You Need to Know

In the world of Bitcoin, a significant event is looming—an event that could reshape how investors, institutions, and even everyday people view this digital asset. The Bitcoin supply shock is fast approaching, driven by increasing institutional demand and a continually decreasing supply of new Bitcoin entering the market. Understanding this imminent supply shock, and how it could influence Bitcoin’s future value, is crucial for anyone looking to navigate the evolving financial landscape.

Understanding Bitcoin’s Fixed Supply

Bitcoin is unique in that its supply is capped at 21 million coins, making it one of the few truly scarce assets in existence today. Unlike fiat currencies, which can be printed endlessly, Bitcoin’s supply is hard-coded to be finite. This scarcity is further heightened by the fact that every four years or so, a process called a halving occurs, which reduces the amount of new Bitcoin that enters circulation by half.

The 2024 Halving: The most recent halving occurred in 2024, reducing the block reward from 6.25 BTC to 3.125 BTC. This means that miners, who validate Bitcoin transactions, are now receiving half as much Bitcoin for the same amount of work, effectively slowing the influx of new Bitcoin into the market.

This process will continue until the year 2140, at which point no more new Bitcoin will be mined, and only the circulating supply of 21 million coins will exist. While that’s over a century away, the effects of Bitcoin’s decreasing supply are already being felt today.

Institutional Adoption and Its Impact on Supply

One of the key drivers behind the imminent supply shock is the increasing presence of institutional investors. Over the past few years, major corporations, hedge funds, and even some governments have begun accumulating Bitcoin as part of their long-term strategies.

Institutional Holdings: Large companies such as MicroStrategy, Tesla, and BlackRock have added substantial amounts of Bitcoin to their balance sheets. These institutions aren’t just buying Bitcoin to trade it—they’re holding it as a store of value, effectively removing large portions of the supply from circulation.

Long-Term Impact: Unlike individual traders, institutions often accumulate assets for the long haul. This means that the Bitcoin they purchase isn’t likely to return to the market any time soon, reducing the available supply and contributing to growing scarcity.

As more institutions jump on the Bitcoin bandwagon, the circulating supply available for everyday investors shrinks further, setting the stage for a supply shock—a period where demand far exceeds the available supply.

Why a Supply Shock is Imminent

Several factors are coming together to create the conditions for this supply shock, and it’s worth understanding why it’s not just a hypothetical event, but something that’s likely to occur sooner rather than later.

Continued Institutional Interest: More institutions are beginning to see Bitcoin as a hedge against inflation and economic instability. With governments around the world printing money at record rates, the appeal of a finite asset like Bitcoin grows stronger. As institutional demand increases, more Bitcoin will be taken off the market and held in reserves.

Decreasing Available Supply: Every Bitcoin halving event cuts the supply of new Bitcoin in half, but this reduction is now coupled with institutional buying. The amount of Bitcoin available on exchanges is shrinking, making it harder for people to buy Bitcoin without moving the price up.

Rising Global Adoption: Countries and companies around the world are warming to the idea of Bitcoin as a legitimate asset class. This isn’t just an institutional trend—retail adoption is increasing as well. As more people and organizations accumulate Bitcoin, the pressure on the already limited supply grows, pushing us closer to a supply shock.

The 2036 Inflection Point: Running Out of Bitcoin

A key moment in Bitcoin’s supply dynamics is approaching in 2036—a date that could be a major inflection point for the cryptocurrency. By that time, 99% of all Bitcoin will have been mined, leaving only 1% to be mined over the next century.

99% Mined by 2036: With each halving, the amount of new Bitcoin being created drastically reduces. By 2036, the Bitcoin network will have released 99% of its total supply of 21 million coins. This means that almost all of the Bitcoin that will ever exist will already be in circulation by that point.

The Final 1%: Mining the last 1% of Bitcoin (around 210,000 BTC) will stretch over the next century. With each halving event, the reward for miners is reduced by half, making it progressively harder to mine new Bitcoin. By the year 2140, when the fixed supply of 21 million Bitcoin is fully mined, the final mining reward will be just one satoshi (0.00000001 BTC). At that point, no new Bitcoin will be created, and miners will rely solely on transaction fees.

The halving mechanism ensures that, while Bitcoin will continue to be mined, the amount added to circulation each year will become negligible compared to the amount already in circulation. This creates an environment of extreme scarcity, where Bitcoin becomes a truly finite resource—more scarce than gold or any other asset known to humanity.

What Does This Inflection Point Mean?

When 99% of Bitcoin is mined by 2036, the remaining supply will be distributed more slowly than ever before. This moment marks a significant shift in Bitcoin’s supply dynamics because:

Price Pressure Will Increase: As the amount of new Bitcoin entering the market slows to a crawl, scarcity will drive up its value. By 2036, we can expect Bitcoin to be far more difficult to acquire, with a much higher price floor due to its rarity and institutional adoption.

Institutional Holdings Will Dominate: Since much of the available Bitcoin will already be in the hands of long-term holders and institutions by 2036, the remaining Bitcoin will be distributed among a much smaller pool of new buyers. This could create intense competition for the few Bitcoins that remain available for trading.

Scarcity Becomes Absolute: Once 99% of Bitcoin has been mined, the market will face a new reality—Bitcoin will become one of the most scarce and sought-after assets ever created. As institutions and investors scramble to secure a piece of this increasingly finite resource, the effects on price could be staggering.

Potential Outcomes of the Supply Shock

When supply is limited, and demand is growing, prices tend to rise. This is a basic economic principle that applies directly to Bitcoin. Here are a few potential outcomes of the looming supply shock:

Price Appreciation: With fewer Bitcoins available for purchase, and demand increasing, the price of Bitcoin is likely to rise. Historically, after each halving, Bitcoin’s price has seen significant upward movements. As we approach the point where supply truly begins to run dry, we could see even more drastic price increases.

Liquidity Crunch: A supply shock can lead to a liquidity crunch, where it becomes harder to buy Bitcoin without driving up the price significantly. As more institutions hold onto their Bitcoin long-term, there could be fewer coins available for trading, leading to thinner order books and sharper price movements.

Increased Scarcity: Bitcoin’s scarcity will only grow over time. As more entities hold onto their Bitcoin as a long-term store of value, the asset becomes increasingly difficult to acquire, adding to its allure as "digital gold." This scarcity is what sets Bitcoin apart from other assets and could make it one of the most valuable assets of the 21st century.

What This Means for Investors

For investors, the impending supply shock presents both challenges and opportunities. Here’s what to consider:

Long-Term Value Proposition: Bitcoin’s finite supply and growing demand make it an attractive asset for long-term investors. If the supply shock occurs as anticipated, those who hold Bitcoin could see substantial value appreciation over time.

Dollar-Cost Averaging (DCA): One strategy to consider is Dollar-Cost Averaging (DCA), which involves buying small amounts of Bitcoin regularly over time. This helps investors accumulate Bitcoin without worrying about short-term price volatility. Over the long term, this strategy can help you build a position before the full effects of the supply shock set in.

Hodling: Holding onto Bitcoin during periods of scarcity could be a powerful investment strategy. Those who understand the long-term value of Bitcoin’s scarcity are positioning themselves to benefit from future price appreciation as the supply shock unfolds.

Conclusion

In summary, the imminent Bitcoin supply shock is not a matter of "if" but "when." With decreasing new supply, increasing institutional accumulation, and growing global adoption, the conditions are ripe for a significant market shift. As Bitcoin becomes increasingly scarce, those who understand its value and act early could find themselves in a favorable position.

The 2036 inflection point—when 99% of all Bitcoin will have been mined—marks a critical moment in the timeline of Bitcoin’s journey. From that point forward, Bitcoin’s scarcity will become undeniable, and its value could appreciate significantly as demand continues to rise.

For investors, the key is to stay informed, consider strategies like Dollar-Cost Averaging, and most importantly, recognize that Bitcoin’s value is rooted in its finite supply. As the world continues to turn to Bitcoin as a hedge against economic uncertainty, the coming supply shock could prove to be one of the most important financial events of the next decade.

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bitcoincables · 10 months

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Crypto Executives Bullish on Bitcoin: Targeting $100,000 in 2024

Bitcoin's price is currently near its 18-month high at $44,000, and analysts and investors are rushing to put out higher price targets for the cryptocurrency. Many believe that Bitcoin could reach $100,000 by next year. Executives from the crypto industry, such as Michael Saylor from MicroStrategy, one of the largest Bitcoin holders, are confident that Bitcoin could double in value within 12 months. Saylor has not officially announced a price target for 2024, but he has mentioned that Bitcoin could increase by tenfold and has suggested that one day people will brag about buying five-figure Bitcoin. Other crypto executives and mainstream financial players, including Matrixport and Standard Chartered Bank, have also expressed bullish sentiment towards Bitcoin, with price targets of $125,000 and $100,000 respectively.

There are two major catalysts driving the optimistic outlook for Bitcoin. Firstly, the US market is expecting the approval of the first-ever spot Bitcoin ETF, which could attract a significant influx of institutional investor money into Bitcoin when it happens, potentially in early 2024. Secondly, the Bitcoin halving, scheduled for April 2024, is anticipated to further boost the price. In the past, the halving has led to substantial price increases, and the next halving is generating excitement among investors. However, it's worth noting that there are risks involved, such as the SEC's decision on the ETF and the possibility that the halving may not have the desired impact on price. Despite these uncertainties, the overall sentiment remains positive, with Bitcoin having the potential to double in value in 2024 and reach the $100,000 mark.

While the path to $100,000 seems promising, there are still potential obstacles that could impede Bitcoin's growth. The SEC's potential rejection of a spot Bitcoin ETF could have a negative effect, considering the significance of this development. Additionally, the Bitcoin halving may not generate the expected results, which could dampen bullish forecasts. However, considering the significant growth Bitcoin has already experienced this year, with its value more than doubling, a target of $100,000 for 2024 seems reasonable. Overall, the long-term outlook remains positive for Bitcoin.

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deb-markethive · 4 months

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(via The Fourth Bitcoin Halving is done. How Has It Stacked Up Historically? What can you expect in the coming months? )

The Bitcoin halving, a highly anticipated and pivotal event in the cryptocurrency industry, has finally occurred. As history has demonstrated, when the supply of new BTC is reduced while demand remains steady or increases, Bitcoin tends to reach record levels, significantly impacting the entire cryptocurrency market. This article explores the Bitcoin halving, examining its historical effects on the crypto market and its implications from the most recent halving in April 2024. Read more… https://markethive.com/group/1146/blog/thefourthbitcoinhalvingisdonehowhasitstackeduphistoricallywhatcanyouexpectinthecomingmonths

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inceptcoin · 4 months

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The Long Game: Investing in Cryptocurrencies for Lasting Wealth Creation

Cryptocurrencies have evolved from niche digital assets to mainstream investment vehicles, captivating the attention of investors seeking to build lasting wealth. While the market is often characterized by volatility and speculation, savvy investors understand the potential for long-term growth and value creation. In this guide, we'll explore ten cryptocurrencies that offer compelling opportunities for investors willing to play the long game.

1. Bitcoin (BTC)

Bitcoin needs no introduction; it's the pioneer of cryptocurrencies and remains the king of the digital asset space. Launched in 2009 by an anonymous entity known as Satoshi Nakamoto, Bitcoin introduced the world to blockchain technology and decentralized finance. As a store of value, Bitcoin is often compared to digital gold, prized for its scarcity, security, and censorship resistance.

Despite its volatility, Bitcoin has demonstrated remarkable resilience over the years, weathering market downturns and regulatory scrutiny. Its finite supply of 21 million coins and halving events every four years contribute to its deflationary nature, making it an attractive hedge against inflation and fiat currency devaluation.

Institutional adoption of Bitcoin has accelerated in recent years, with prominent companies and investors adding it to their portfolios as a hedge against macroeconomic uncertainty. Moreover, the integration of Bitcoin into traditional financial infrastructure through products like futures contracts and exchange-traded funds (ETFs) has further legitimized its status as a mainstream asset class.

Looking ahead, Bitcoin's long-term outlook remains bullish, fueled by its growing adoption as a digital store of value and a hedge against fiat currency depreciation. As central banks continue to pursue expansionary monetary policies, Bitcoin's scarcity and decentralization could make it an indispensable component of diversified investment portfolios.

2. Ethereum (ETH)

Ethereum is more than just a cryptocurrency; it's a decentralized platform that enables developers to build and deploy smart contracts and decentralized applications (DApps). Launched in 2015 by Vitalik Buterin and a team of developers, Ethereum introduced programmability to blockchain technology, paving the way for a new wave of innovation in decentralized finance (DeFi), non-fungible tokens (NFTs), and decentralized exchanges (DEXs).

One of Ethereum's key advantages is its network effect, with thousands of developers and projects contributing to its ecosystem. The Ethereum Virtual Machine (EVM) allows developers to write smart contracts in multiple programming languages, making it accessible to a wide range of developers and use cases.

Ethereum's native cryptocurrency, Ether (ETH), serves as the fuel for the Ethereum network, used to pay for transaction fees and computational services. Additionally, ETH can be staked to help secure the network and earn rewards in the upcoming Ethereum 2.0 upgrade, which aims to transition Ethereum from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism.

Despite facing challenges with scalability and network congestion, Ethereum remains the leading platform for decentralized applications and smart contracts. With the advent of Ethereum 2.0 and the continued growth of DeFi and NFTs, Ethereum's long-term prospects appear bright, positioning it as a cornerstone of the decentralized web.

3. Cardano (ADA)

Cardano is a third-generation blockchain platform that aims to provide a secure and scalable infrastructure for the development of decentralized applications and smart contracts. Founded by Charles Hoskinson, one of the co-founders of Ethereum, Cardano distinguishes itself through its scientific approach to blockchain development, rigorous peer-reviewed research, and commitment to scalability, interoperability, and sustainability.

One of Cardano's key innovations is its use of a layered architecture, which separates the platform into distinct layers for settlement, computation, and control. This modular design allows for greater flexibility, scalability, and security compared to traditional blockchain architectures.

Cardano's native cryptocurrency, ADA, plays a central role in the platform's operation, used for transaction fees, stake delegation, and governance. Cardano's transition to a proof-of-stake (PoS) consensus mechanism, known as Ouroboros, enhances network security and energy efficiency while enabling ADA holders to participate in the network and earn rewards.

With the upcoming rollout of Cardano's Alonzo upgrade, which will introduce smart contract functionality to the platform, Cardano is poised to expand its ecosystem and capture a larger share of the decentralized finance (DeFi) market. By prioritizing scientific rigor, scalability, and interoperability, Cardano presents a compelling investment opportunity for the long term.

4. Polkadot (DOT)

Polkadot is a multi-chain blockchain platform that enables interoperability between different blockchains, allowing them to seamlessly communicate and share data. Founded by Dr. Gavin Wood, one of the co-founders of Ethereum, Polkadot addresses the scalability, security, and governance challenges facing the blockchain industry through its unique architecture and governance model.

One of Polkadot's key features is its heterogeneous multi-chain framework, which consists of multiple parachains connected to a central relay chain. Parachains are specialized blockchains that can be customized for specific use cases, such as decentralized finance (DeFi), non-fungible tokens (NFTs), and decentralized exchanges (DEXs). The relay chain serves as a secure and trustless bridge between parachains, facilitating interoperability and cross-chain communication.

Polkadot's native cryptocurrency, DOT, plays a central role in the platform's operation, serving as the native token for transaction fees, governance, and staking. By staking DOT, participants can contribute to the security and governance of the network while earning rewards in return.

With its scalable architecture, interoperability features, and active community of developers and validators, Polkadot is well-positioned to capture a significant share of the blockchain market. As the demand for cross-chain communication and interoperability grows, Polkadot's long-term prospects appear promising, making it an attractive investment opportunity for investors looking to build lasting wealth.

5. Binance Coin (BNB)

Binance Coin (BNB) is the native cryptocurrency of the Binance ecosystem, one of the largest cryptocurrency exchanges in the world. Launched in 2017 by Changpeng Zhao, Binance Coin initially served as a utility token for discounted trading fees on the Binance exchange but has since evolved into a versatile digital asset with various use cases and applications.

One of Binance Coin's key advantages is its utility within the Binance ecosystem, where it can be used to pay for trading fees, transaction fees, and various other services. Binance Coin's utility extends beyond the exchange itself, with integrations into decentralized finance (DeFi) protocols, non-fungible token (NFT) marketplaces, and blockchain-based games.

Binance Coin's value proposition is further enhanced by its periodic token burns, where a portion of BNB tokens collected as transaction fees are permanently removed from circulation. These token burns reduce the overall supply of BNB, creating scarcity and potentially increasing its value over time.

With Binance's continued expansion into new markets and verticals, Binance Coin is poised to benefit from increased demand for its utility and services. As one of the largest and most liquid cryptocurrencies in the market, Binance Coin presents a compelling investment opportunity for investors seeking exposure to the cryptocurrency ecosystem.

6. Solana (SOL)

Solana is a high-performance blockchain platform that aims to provide fast, scalable, and low-cost infrastructure for decentralized applications (DApps) and crypto-native projects. Founded by Anatoly Yakovenko, Solana distinguishes itself through its innovative consensus mechanism, proof-of-history (PoH), which enables fast and secure transaction processing.

One of Solana's key features is its scalability, with the ability to support thousands of transactions per second (TPS) and sub-second confirmation times. This high throughput makes Solana well-suited for applications that require real-time transaction processing, such as decentralized finance (DeFi), non-fungible tokens (NFTs), and gaming.

Solana's native cryptocurrency, SOL, serves as the fuel for the Solana network, used to pay for transaction fees, computational services, and staking. By staking SOL, participants can contribute to the security and governance of the network while earning rewards in return.

With its scalable architecture, low transaction costs, and growing ecosystem of projects and developers, Solana is well-positioned to capture a significant share of the decentralized application market. As the demand for fast and efficient blockchain solutions grows, Solana's long-term prospects appear promising, making it an attractive investment opportunity for investors looking to build lasting wealth.

7. Chainlink (LINK)

Chainlink is a decentralized oracle network that enables smart contracts to securely interact with real-world data, APIs, and external systems. Founded by Sergey Nazarov and Steve Ellis in 2017, Chainlink addresses the "oracle problem" in smart contract platforms by providing reliable and tamper-proof data feeds.

One of Chainlink's key features is its decentralized network of oracles, which aggregate and verify data from multiple sources before delivering it to smart contracts on various blockchain platforms. This decentralized approach ensures the integrity and reliability of data feeds, mitigating the risk of manipulation or censorship.

Chainlink's native cryptocurrency, LINK, serves as the fuel for the Chainlink network, used to pay for oracle services and incentivize node operators to provide accurate and timely data. Additionally, LINK can be staked to secure the network and earn rewards through Chainlink's staking mechanism.

With the increasing adoption of smart contracts and decentralized applications (DApps) across various industries, the demand for reliable and decentralized oracle solutions is expected to grow. As the leading oracle network in the blockchain space, Chainlink is well-positioned to capitalize on this trend, making it an attractive investment opportunity for investors seeking exposure to the decentralized oracle market.

8. Terra (LUNA)

Terra is a blockchain platform that aims to provide price-stable cryptocurrencies for payments and decentralized finance (DeFi) applications. Founded by Daniel Shin and Do Kwon, Terra distinguishes itself through its algorithmic stablecoins and interoperability with various blockchain platforms.

One of Terra's key innovations is its stablecoin ecosystem, which consists of multiple fiat-pegged stablecoins tied to different fiat currencies, such as the TerraUSD (UST) and TerraKRW (KRT). These stablecoins maintain their peg to their respective fiat currencies through a combination of algorithmic mechanisms and decentralized governance.

Terra's native cryptocurrency, LUNA, plays a crucial role in the stability and security of the Terra network. LUNA is used to collateralize the stablecoins minted on the Terra platform, ensuring their stability and redeemability at face value.

With the growing demand for stablecoins and decentralized finance (DeFi) applications, Terra's long-term prospects appear promising, making it an attractive investment opportunity for investors looking to build lasting wealth.

9. Avalanche (AVAX)

Avalanche is a decentralized platform that aims to provide fast, scalable, and interoperable infrastructure for decentralized applications (DApps) and enterprise blockchain solutions. Founded by Emin Gün Sirer, Avalanche distinguishes itself through its innovative consensus mechanism, Avalanche Consensus, which enables sub-second transaction finality and low transaction fees.

One of Avalanche's key features is its scalability, with the ability to support thousands of transactions per second (TPS) and sub-second confirmation times. This high throughput makes Avalanche well-suited for applications that require real-time transaction processing, such as decentralized finance (DeFi), non-fungible tokens (NFTs), and gaming.

Avalanche's native cryptocurrency, AVAX, serves as the fuel for the Avalanche network, used to pay for transaction fees, computational services, and staking. By staking AVAX, participants can contribute to the security and governance of the network while earning rewards in return.

With its scalable architecture, low transaction costs, and growing ecosystem of projects and developers, Avalanche is well-positioned to capture a significant share of the decentralized application market. As the demand for fast and efficient blockchain solutions grows, Avalanche's long-term prospects appear promising, making it an attractive investment opportunity for investors looking to build lasting wealth.

10. Uniswap (UNI)

Uniswap is a decentralized exchange (DEX) that enables users to swap tokens and provide liquidity for trading pairs on the Ethereum blockchain. Founded by Hayden Adams in 2018, Uniswap introduced the concept of automated market makers (AMMs) to decentralized finance (DeFi), revolutionizing the way users trade and exchange tokens.

One of Uniswap's key features is its decentralized liquidity pools, which enable users to trade tokens directly from their wallets without the need for intermediaries or order books. Liquidity providers earn fees by contributing tokens to these pools, which are used to facilitate trades and maintain liquidity.

Uniswap's native cryptocurrency, UNI, serves as the governance token for the Uniswap protocol, enabling holders to vote on proposals and changes to the platform. Additionally, UNI holders receive a share of the trading fees generated by the protocol, providing an incentive to participate in governance and contribute to the success of the platform.

With the growing popularity of decentralized exchanges (DEXs) and automated market makers (AMMs) in the decentralized finance (DeFi) space, Uniswap is well-positioned to capture a significant share of the trading volume and liquidity in the Ethereum ecosystem. As the leading decentralized exchange on Ethereum, Uniswap presents a compelling investment opportunity for investors looking to build lasting wealth in the decentralized finance (DeFi) space.

This guide provides a comprehensive overview of ten cryptocurrencies with compelling long-term investment potential. While each cryptocurrency has its unique features and attributes, they all share a common goal of reshaping the financial landscape and empowering individuals to take control of their wealth. As with any investment, it's essential to conduct thorough research and consider your risk tolerance before making any investment decisions. However, for investors looking to build lasting wealth in the cryptocurrency space, these ten cryptocurrencies offer compelling opportunities for growth and value creation.

#cryptocurrency #inceptcoinicc #best crypto to buy today #finance

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blockinsider · 3 months

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Bitcoin Mining Returns to Profitability Post-Halving in June

Key Points

Bitcoin mining profitability saw a positive shift in June, following the impact of the April halving.

Several Bitcoin miners are strategically shifting towards high-performance computing (HPC) and AI hosting.

Bitcoin mining profitability saw a rise in June, following a challenging period in May. This change was noted in a recent report by investment bank Jefferies. The increase coincided with a 2% increase in Bitcoin’s price and a 5% decrease in network hashrate, indicating that the market is adapting to the effects of the April halving.

Analyst Jonathan Petersen stated in the Jefferies report that June was a month of modest recovery from the immediate impacts of the halving that were most pronounced in May.

Understanding Hashrate and Halving

Hashrate, a measure of the combined computational power dedicated to mining Bitcoin, serves as a proxy for competition within the industry and mining difficulty. The quadrennial halving event in April halved the rate at which new Bitcoins are generated, effectively reducing miners’ rewards by 50%.

Jefferies’ Adjustments on Bitcoin Miner Targets

Jefferies took the opportunity to adjust its price targets for several publicly traded Bitcoin mining companies. Marathon Digital (MARA), previously rated as “hold,” saw its target price decrease from $24 to $22. The bank also lowered its target for Argo Blockchain’s ADRs (ARBK) from $1.50 to $1.20, and for its UK-listed shares (ARB) from 11.90p to 9.5p (roughly 12 cents).

Jefferies maintained its “hold” rating for Argo Blockchain. It’s important to remember that one ADR is equivalent to 10 shares.

The report highlighted a noteworthy trend: several Bitcoin miners are pivoting towards high-performance computing (HPC) and artificial intelligence (AI) hosting. This strategic shift aims to diversify their revenue streams and capitalize on the growing demand for AI and cloud computing infrastructure.

Petersen explained in the report that this strategic shift has been driven by the declining profitability of bitcoin mining, particularly after the recent halving events.

US Mining Companies Gaining Share

Jefferies also noted that US-listed mining companies captured a larger share of newly minted Bitcoin in June compared to May. Their share increased from 19.1% to 20.8% of the total network production, likely due to the addition of new mining capacity and the network hashrate decline.

The report further reveals that Marathon Digital mined the most Bitcoin in June, at 590 tokens, despite a 4% decrease from May’s production. CleanSpark (CLSK) also saw a 7% increase, mining 445 tokens in June.

Marathon retained its position as the leader in installed hashrate among US-listed miners, boasting 31.5 exahashes per second (EH/s). Riot Platforms (RIOT) followed closely behind with 22 EH/s.

While Bitcoin mining profitability remains a concern, especially after the halving, June’s positive signs suggest the market is adjusting. The strategic shift towards HPC and AI hosting by some miners shows their efforts to diversify their revenue streams and adapt to the changing landscape.

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market-news-24 · 4 months

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Bitcoin has soared past $70,000 for the first time ever, captivating both seasoned investors and newcomers. This remarkable surge is largely driven by the introduction of Spot Bitcoin ETFs, which have made it easier and more attractive for people to invest in the world's leading cryptocurrency. As excitement builds around these new investment opportunities, Bitcoin's record-breaking performance continues to make headlines. Click to Claim Latest Airdrop for FREE Claim in 15 seconds Scroll Down to End of This Post const downloadBtn = document.getElementById('download-btn'); const timerBtn = document.getElementById('timer-btn'); const downloadLinkBtn = document.getElementById('download-link-btn'); downloadBtn.addEventListener('click', () => downloadBtn.style.display = 'none'; timerBtn.style.display = 'block'; let timeLeft = 15; const timerInterval = setInterval(() => if (timeLeft === 0) clearInterval(timerInterval); timerBtn.style.display = 'none'; downloadLinkBtn.style.display = 'inline-block'; // Add your download functionality here console.log('Download started!'); else timerBtn.textContent = `Claim in $timeLeft seconds`; timeLeft--; , 1000); ); Win Up To 93% Of Your Trades With The World's #1 Most Profitable Trading Indicators [ad_1] Bitcoin Tops $70,000 Following Approval of Spot Bitcoin ETFs Bitcoin surged past $70,000 briefly on Monday, marking another milestone in its volatile journey. Bitcoin Reaches New Heights On Monday, Bitcoin's price climbed $3,931 higher than its previous close, reaching an impressive 82.3% increase since its lowest point in 2024 on January 23. As reported by Reuters, this remarkable rally in Bitcoin price is largely attributed to the approval and subsequent launch of spot bitcoin exchange-traded funds (ETFs). These ETFs have not only drawn in new investors but have also reignited interest in the cryptocurrency, reversing the downward trend seen during the 2022 "crypto winter." Spot Bitcoin ETFs Drive Surge Cointelegraph also reported a noticeable increase in spot buying and spot bitcoin ETF transactions on Monday, correlating with Bitcoin's climb past the $70,000 mark. The combined effects of spot bitcoin ETFs and increased buying activity have played a pivotal role in this price surge. Record-Breaking Trends and Future Predictions Bitcoin set an all-time high of $73,000 in March as investors regained their confidence in the cryptocurrency following the SEC's approval of bitcoin ETFs earlier this year. Moreover, venture capital investment in crypto companies is on the rise again after a significant cooling period over the past two years. Noteworthy Investments and Predictions On May 2, Block, the parent company of Cash App and Square, disclosed a substantial investment in Bitcoin. By the end of the quarter, Block's $200 million investment in bitcoin had appreciated by approximately 160%, reaching $573 million. Block CEO Jack Dorsey emphasized the need for a decentralized money protocol and stated his belief that Bitcoin is poised to become the native currency of the internet. Impact of Bitcoin Halving In April, the latest Bitcoin "halving" event occurred, reducing the number of mineable bitcoins by half. Historically, such events have led to significant price increases. Following the halvings in 2012, 2016, and 2020, Bitcoin’s value surged by about 93x, 30x, and 8x, respectively, from its halving day price to its cycle peak. Many investors anticipate similar gains in the months ahead. Conclusion The recent surge in Bitcoin prices and the approval of spot bitcoin ETFs signal a renewed investor confidence and potential for future growth. As venture capital investment flows back into the crypto space and significant players like Block continue to invest heavily in Bitcoin, the future looks promising for the world's leading cryptocurrency. For more updates on cryptocurrency trends, subscribe to our newsletter.

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