It has been recently noticed by many that the leading cryptocurrency #Bitcoin (BTC) has a certain price cycle. The fact that the BTC price rose right after the block prize halves caught the attention of many, including #Binance #CEO #Chanegpeng #Zhao. CZ made a statement on this subject that will be a reference to the future.
↘️Reference Tweet for Bitcoin Price
The world's largest in terms of trade volumes crypto currency exchange Binance's CEO Changpeng Zhao was reminded of the fact that last year's talk about this cycle in a statement. In his related post, CZ stated that a year ago, everyone talked about whether Bitcoin's block prize halving would affect the price, and that this will be on the agenda again in 3 years.
↘️How Does Block Reward Halving Affect BTC?
The leading crypto currency Bitcoin is experiencing a block reward halving every 4 years, on average, according to the block mining time. BTC, which started with 50 block rewards for the first time, is now known to have reduced it to 6.25. Block reward halving also creates a supply and liquidity constraint with the decrease in the amount of BTC to be mined in each block.
In the statement made by the Binance CEO regarding the halving of the price and block reward, this is actually emphasized. Famous analyst PlanB states that the Bitcoin price may reach $ 1 million according to the stock-flow analysis in the continuation of 2024. The analyst's forecast for 2020 has come true, and the price has even risen to over $ 50,000 in 2021. CZ may have emphasized this when recommending to keep this tweet for future reference.
↘️Not Enough Bitcoin
More and more institutions and individuals are buying Bitcoin every day. In addition to Bitcoin's limited supply of 21 million, the decrease in the amount of BTC produced per day can make it even more difficult for these institutions to reach BTC. This will result in much higher prices being paid for the purchase of 1 BTC.
Although gold also has limited supply, more and more gold mines can be discovered in the world every day. For Bitcoin, the situation is quite clear and clear with code. It is quite possible for the BTC price to rise according to these software-based rules, considering CZ's latest announcement.