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SOME GREAT INFORMATION ABOUT BTC HALVING

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Effects of Supply on Bitcoin's Price The supply of an asset plays a vital role in determining its price. A scarce asset is likelier to have high prices, whereas one available in plenty will have low prices. Bitcoin's supply is generally well-publicized, as there will only ever be 21 million produced and only a specific amount created per year. Its protocol only allows new bitcoins to be rewarded at a fixed rate, and that rate is designed to slow down over time. Therefore, Bitcoin's future supply is dwindling, which adds to demand. This is similar to a reduction in corn supply if harvests were to be reduced every four years until no more was harvested, and it was publicly advertised that it would happen—corn prices would skyrocket.

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How Is Bitcoin’s Price Determined? Bitcoin's price changes because of its supply, the market's demand, media and news, and regulatory changes. Some research suggests that the cost of producing a bitcoin also influences its prices, but most reports used assumed data rather than facts. Bitcoin is not issued by a central bank or backed by a government; therefore, the monetary policy tools, inflation rates, and economic growth measurements that typically influence the value of a currency do not apply to Bitcoin.

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What Happens When Bitcoin Is Halving? The term "halving" as it relates to Bitcoin concerns how many tokens are rewarded—the amount is cut in half. This acts to simulate diminishing returns while increasing scarcity, which is intended to raise demand. What Are the Bitcoin Halving Dates? Halvings have occurred on the following dates: Nov. 28, 2012, to 25 bitcoins July 9, 2016, to 12.5 bitcoins May 11, 2020, to 6.25 bitcoins April 19, 2024, to 3.125 bitcoins Mid-2028, to 1.5625 bitcoins

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Inflation One of the key concepts behind halving the reward is to address inflation concerns. Inflation is a decrease in the amount of goods a certain amount of currency can buy at any given moment. In the U.S., inflation is measured by how much it costs to buy a basket of goods. There is an acceptable inflation rate that is considered good for an economy—usually 2%—but this number is generally a target set by central banks as a goal rather than a reachable figure. The Bitcoin Halving is intended to counter any inflationary effects on Bitcoin by lowering the reward amount and maintaining scarcity. However, this inflation "protection" mechanism does not protect Bitcoin users from the inflationary effects of the fiat currency to which it must be converted to be used in an economy. Gains made regarding market value might offer inflation protection for investors, but they don't for the cryptocurrency's intended use as a payment method.

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What Is Bitcoin Halving? The Bitcoin Halving takes place about every four years and reduces the block reward by 50%. This lowers the supply of bitcoins entering the market, which increases scarcity and can act to raise its price if market conditions remain the same. Block rewards are part of the blockchain's autom…

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I just completed "Infinity CUBEs: CUBE Collectors Special #1" on Layer3 - https://app.layer3.xyz/quests/infinity-cubes-cube-collectors-special-1

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