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Why does cryptocurrency halve (Why does cryptocurrency go to zero)?

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Why does cryptocurrency halve? The article is from HiveEcon (ID: HiveEcon), wri

Why does cryptocurrency halve (Why does cryptocurrency go to zero)?

Why does cryptocurrency halve? The article is from HiveEcon (ID: HiveEcon), written by Yuan Shang and authorized by Odaily Star Planet Daily.

Why does cryptocurrency halve? Let’s understand the issue of “Bitcoin” production reduction. When Satoshi Nakamoto released the Bitcoin whitepaper on January 12, 2012, it was already clear that halving was inevitable. And just the night before yesterday, the “Bitcoin price skyrocketed”, and people predicted that there will be more currencies in the future. So what is the reason for the recent increase in Bitcoin price? One key factor mentioned is why halving is needed?

1. The Bitcoin mining reward is halved every four years. Based on the time sequence set by Bitcoin officials, each block will be adjusted from 12.5 BTC to 6.25 BTC. 2. As the transaction fees in the network increase, the Bitcoin production will gradually decrease. However, with the passage of time and changes in demand, the supply will continue to increase, and the supply will also decrease accordingly. At the same time, due to the influence of market supply and demand, Bitcoin has ushered in a new period of growth. 3. The income after halving has no necessary connection with expectations. The value of Bitcoin before halving depends on its scarcity. In theory, the interest generated after halving can be used to pay for operating costs and repurchase and destroy tokens to promote long-term appreciation. 4. The reasons behind the halving effect are that many institutions in the current market are increasing their holdings of BTC rather than selling it. In mid-June 2017, the price of Bitcoin reached a historical high of more than 20,000 RMB. In the bull market that began in early 2020, institutions’ enthusiasm for investing in Bitcoin continued to rise. In the first quarter of 2019, this trend increased linearly and reached a historical high by the end of May 2020. The Bitcoin price soared to above 60,000, with an increase of nearly 50%. In the following months, the price of Bitcoin showed a significant dive.

Why does cryptocurrency go to zero?

Why does cryptocurrency go to zero?

On January 10, 2020, the price of Bitcoin broke through the $33,000 mark and rose to a high of $35,300. Afterwards, mainstream cryptocurrencies such as Ethereum and XRP began to fall sharply and broke through 0.017 BTC, reaching the lowest level since 2018. In the continued slump of the market, “altcoins” can still survive.

So, why do “altcoins” and “aircoins” frequently experience scams? Firstly, what are “aircoins,” “air projects,” and “pyramid schemes”? Secondly, what exactly are “aircoins”?

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