What impact does the bitcoin halving have on the bitcoin price?
It is believed by cryptocurrency players that halving will affect the price of bitcoin.
The power of cryptocurrencies lies with the miners, because the miners serve as validators of transactions on the bitcoin network.
There are no miners then bitcoin transactions will crash.
So, halving which reduces the reward means reducing mining profits.
Miners have a fixed capital and even tend to go up to buy hardware.
Here there will be gambling between rising prices or fixed prices or tending to fall.
If the price goes up, then it’s a blessing for miners and speculators who buy bitcoins early before the halving occurs. But what needs to be considered is that there is still a large supply of bitcoins that have been mined (18 million) so what needs to be considered if you want the price to go up, the capital entered is more many
Market capitalization (USD):
The market capitalization of bitcoin is 167 B USD, so if you want the price to go up, a lot of fresh funds have to come in.
If prices are stable or fall, then it is a disaster for the miners, they have to lose because the maintenance costs are not proportional to the income.