• The Bitcoin network is scheduled to undertake its fourth halving in less than a year.
• After the previous three halvings, BTC went on a wild run.
• Basic rules of economics dictate that if the supply of an asset declines while the demand remains the same or increases, its price should, at least in theory, rise.
What is Bitcoin Halving?
The Bitcoin network is scheduled to undertake its fourth halving in less than a year. Upon creating the Bitcoin network, Satoshi Nakamoto incorporated an event happening at every 210,000 blocks (around four years) that essentially guarantees that the annual supply will be slashed in half. The first one reduced the block rewards from 50 BTC to 25 BTC, the second (25 -> 12.5), and the third drove them down to the current 6.25. This means that the cryptocurrency’s current inflation levels are under 2% and will go further down as the rewards will be 3.125 BTC after the 2024 halving.
What Happened After Previous Three Halvings?
After each of these events, there was an increase in prices followed by a so-called “bull run” – a period of intensified buying activity which resulted in significantly higher prices compared to pre-halving levels. For instance, after 2012’s reduction from 50 to 25 coins per block reward, bitcoin saw itself reach $1k for a single coin just two years later and eventually spike all up to $20k+ during 2017’s crypto winter season when it went from 25 all down to 12.5 coins per block reward once again.
Will it Happen Again With The Fourth Halving?
The speculations on whether this event will have an impact on bitcoin’s price have already begun and many believe it should be expected similarly as before given basic rules of economics – if there is decreased supply while demand remains stable or increases – prices should theoretically rise as well as this would make each coin more valuable due to their scarcity.
What Does ChatGPT Think About It?
ChatGPT believes that bitcoin could benefit from another bull run with prices reaching new highs shortly after 2024’s halvening which would reduce block rewards even further down to 3125 coins per block reward – resulting in decreased inflation levels even more so than previously experienced post-halvening periods and potentially allowing for sustained growth over time due to increased demand while supply has been drastically cut back due to these events taking place every 4 years according to Satoshi Nakamoto’s original protocol design for Bitcoin network operation security measures implemented into codebase originally created by him back in 2009 when he set out building blockchain technology for public use via his open source software development project called “Bitcoin”.
Conclusion
All signs point towards another bullish cycle coming soon after 2024’s halvening if historical trends are any indication – however nothing can be said with absolute certainty until then since crypto markets remain extremely volatile by nature and things could change quickly depending on external factors such as government regulations or economic conditions worldwide among other things which may play role influencing how people perceive value proposition behind investing into cryptocurrencies like Bitcoin long term
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