- Bitcoin value surged after its fourth halving, a significant event impacting market dynamics and interest.
- Kathleen Breitman notes the surprising influx of Bitcoin buyers post-halving, surpassing expectations despite anticipation.
- The reduction in new Bitcoin creation from 900 to 450 per block affects security budgets and investor interest.
- Transaction fees fluctuated alongside Bitcoin’s halving, indicating market activity despite decreased mining rewards.
Bitcoin, the first big digital money, had its fourth time halving the rewards for miners on Friday. So, this has happened four times before. Thus, People eagerly waited for this because it usually changes how the market works.
Kathleen Breitman, a prominent figure in the crypto sphere, took to the stage to talk about why Bitcoin’s value went up after this event.
Bitcoin Value Goes Up and How the Market Works
Breitman says it’s not surprising that Bitcoin halved its rewards, but she’s amazed at how many people bought Bitcoin after this happened. So, she says, “It’s kind of funny how this joke has become very popular.”Even though everyone knew this was coming, lots of people buying Bitcoin still went beyond what was expected. She adds, “In the end, it’s a market that trades on many things, and you have to make jokes, right?”
Furthermore, Breitman says that reducing the number of new bitcoins created from 900 to 450 per block has big effects. She explains that one way to see it is that the number of Bitcoin produced in every block constitutes a security budget. This essentializes the number of bitcoins in addition to that and could make more people want them. Also, big investors like BlackRock are getting interested, which makes it essential to know precisely how much people wish to buy Bitcoin now.
Bitcoin ETFs and How People Feel About the Market
Breitman explains the link between the number of bitcoins being produced and the demand for them, and she discusses the security budget aspect. She states, “It sets the stage for producing too much new Bitcoin before it allocates too little to security, which is an interesting aspect of its creation.”So, even though the halving made mining rewards smaller, fees for transactions went up, showing the market is busy.
Additionally, the start of using meme coins with Bitcoin has caused transaction fees to change dramatically, going up and down. So, Breitman states, “Even though they halved the reward for making a new Bitcoin, transaction fees were really high.”This shows how Bitcoin’s value can change dramatically.
Guessing What Will Happen After the Halving
Breitman looks at what happened after the other times Bitcoin halved its rewards and says that good things usually happen. Thus, she says, “There’s not much data to look at. It’s only happened three times.” So, with just three times before, it’s hard to say for sure what will happen.
But, Breitman says people trading Bitcoin are more intelligent now, so what they think might not change as much because of stories. She says, “You’d hope that these stories or jokes wouldn’t as easily influence the Bitcoin market.” But she agrees that what people think, based on how things are going and what they say online, still matters a lot.
Wrap-Up
Kathleen Breitman’s ideas prompt us to consider the generation of Bitcoin, who shows interest in it, and how people perceive it. Bitcoin is changing all the time, and it’s interesting to see how it deals with stories and could change how money works.
So, the big question is: Will things be the same as before, or will Bitcoin do something different? We’ll have to wait and see.
Fortune; Image source
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