Bitcoin is produced by the miner's contribution. Minors develop the blockchain to examine the rightness of each transaction. Some Bitcoins are rewarded to miner who approved the transaction. But the reward is programmed to be halved in a particular period. And, it came for the third time since Bitcoin emerged.
Approaching the halving period is said to raise the value of Bitcoin. It is because as same as the gold is worthy. Thus, reduced production of Bitcoin positively affect the price of Bitcoin.
However, it is a theoretical explanation. In real, the value of Bitcoin is determine between need and supply, or bid and ask. The market decides it. If many people believe Bitcoin will be worthy in the future, the price increases.
And now, the price of Bitcoin is fluctuating. A couple of days ago, it was decreased by more than 5%. It is perhaps that some whales sold massive Bitcoin.
The truth is in the dark. Nobody exactly prospect the proper price of Bitcoin. It will take a long time for Bitcoin to become an alternative of a fiat with trustworthiness of its value.
No comments:
Post a Comment