The recent Bitcoin halving event has stirred up many different debates among investors and analysts alike. This event, which happens about every four years, chops the rewards for miners in half, effectively reducing the new supply of Bitcoin entering the market. This time the halving was met with a ton of network traffic due to tokens and NFTs being built on the Bitcoin blockchain, and after the halving the fees went through the roof, causing many to question Bitcoin's use as an actual currency. So let's take a look at the aftermath of the Bitcoin halving.
Optimistic Outlook
There's a camp of experts who are feeling pretty upbeat about what comes next for Bitcoin. They're pointing to history, saying that previous halvings have often led to significant price hikes over the long haul. The combo of reduced supply and the increasing interest from big players through spot Bitcoin ETFs could really send prices soaring. This is still the sentiment from much of the 'Bitcoin maxi' community.
Taking a Step Back
But there is also a big camp that are not so optimistic about how things are going to play out. These bears are not quite ready to break out the party hats and moon boots just yet. According to them, the market might have already factored in the halving, so any potential price fireworks could be a bit subdued. Plus, there's the whole issue of rising mining costs and challenges to consider.
Then as we saw during the halving and beyond, the transaction fees have priced out much of the population from being able to actually use the network, but the maxi community say this is a feature and that high transaction fees help secure the blockchain from spammers. So are they calling everyday people that can't afford a $100+ transaction fee spammers? This has become a big cause of concern for many in the community that actually want to pay for things with Bitcoin instead of just falling in the hodling category.
Big Money Moves
Many Bitcoin investors and analysts are pointing to the big institutions to carry the market through the ETFs. Traditional investors are seeing it as a legit investment option, especially with all the chatter about high inflation and interest rates. The fact that spot Bitcoin ETFs have gathered over $60 billion in assets is a big flashing neon sign of this institutional hunger to get involved in the space. We haven't even seen the reaction from Wall Street yet at time of writing this post as the halving happened over the weekend, so the effects there haven't been felt yet. Many are hoping for a huge pump come market open on Monday morning, but only time will tell.
More Than Just Numbers
The halving is a symbolic piece to the whole puzzle. It's a big moment in Bitcoin's journey, marking a major milestone with over 90% of the total supply already mined. Many have said that this cut now makes Bitcoin a harder money than gold, not in a physical sense, but in the manner that the inflation rate is now lower than that of gold.
So as the dust settles and we are seeing the aftermath of the Bitcoin halving, there are still conflicting opinions floating around about what it all means for the cryptocurrency market. Some are gearing up for a potential surge in prices, while others are bracing for a more subdued reaction with the assumption that the halving was already 'baked' into the price.
Nothing said is financial advice.
This is for educational and recreational purposes only!
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