After the network hits 210,000 blocks – roughly every four years – the block reward given to Bitcoin miners for processing a transaction is halved. This event is called halving because it halves the rate at which new Bitcoins are put into circulation.
This reward system will continue until approximately 2140, when the 21 million token limit will be reached. At that point, miners will be charged a transaction processing fee that will be paid by network users. These fees ensure that miners are still incentivized to participate and maintain the network.
Back in 2012, the reward was 25 Bitcoins per block, but in 2016 it dropped to 12.5 Bitcoins per block. As of 2020, miners are awarded 6.25 Bitcoins per mined block, this April it will decrease again to 3.125 Bitcoins.
How does a halving affect the price of Bitcoin?
The general consensus is that Bitcoin semi-events are positive for the price of Bitcoin, and historically they have been. This event often creates optimism among cryptocurrency investors, which then leads to positive price action. This positive price movement can be attributed to several factors.
First, a decrease in the supply emission rate increases the scarcity of Bitcoin, which can increase demand and consequently increase its price.
Additionally, the semi-focused event draws attention to the cryptocurrency space, attracting new investors and fueling an increase in trading activity. However, it’s important to note that while halvings have historically led to price increases, the magnitude of these increases can decrease with each subsequent halving.
While a Bitcoin halving may positively affect the price, there are Bitcoin alternatives that investors can get involved with at a reduced price. Two such cryptocurrency projects are Smog and Sponge V2.
Smog offers the largest airdrop on the Solana blockchain
Smog is a meme coin built on the Solana blockchain that gained significant attention due to its innovative airdrop campaign and multi-chain expansion. Smog, which launched on February 7, 2024, saw a rapid rise in price and market cap, reaching a market cap of $50 million within days of launch. However, it pulled back as it currently has a market cap of around $34 million, a good entry point for all new investors.
The coin’s airdrop campaign, which encourages users to buy and hold $SMOG tokens to earn airdrop points, has been a key factor in its success. Since then, $SMOG has expanded to Ethereum, meaning potential investors can now buy $SMOG token also on the ERC-20 network.
The Smog community is active on social media platforms such as Twitter and Telegram, and the project has been praised for its experienced marketing team and security measures, such as a third-party security firm blocking liquidity funds and the team relinquishing ownership of the Smog token contract.
The token’s roadmap includes the rollout of major features and future airdrops, and has been touted as a potential investment opportunity for those interested in Solana-based meme coins like BONK or WIF.
Sponge V2 with versatile utility
Sponge V2 tokens is an upgraded version of the original Sponge token that offers real utility value to users and holders. It has a three-phase guide where Phase 3 includes the Level 1 Centralized Exchange Listings and the launch of the Sponge Game App.
The V2 token introduces a Play-to-Earn (P2E) game that allows investors to earn $SPONGEV2 tokens by playing the game and ranking on the leaderboard. The only way how to get Sponge V2 is its stake-to-bridge model that supports both existing Sponge V1 tokens and new investors interested in participating in the project and the game. More than 8 million have already been “frozen”.
The project has gained attention due to its significant benefit and play-to-play and is expected to be listed on major exchanges. With 150 billion tokens and allocations “freezing” for rewards, liquidity, marketing and development, Sponge V2 offers versatile utility.
Conclusions
Bitcoin halving is a pre-programmed measure aimed at reducing inflation by reducing the amount of new Bitcoins created. The impact on value can vary and is influenced by many factors.
Thus, it is important to understand that a halving is one of many factors that can affect the value of Bitcoin, while also taking into account other factors.
Bitcoin is currently available for purchase at $51,930, this may be a high entry level for many investors, so currently the best low entry Bitcoin alternatives are Smog, which offers the largest airdrop on the Solana blockchain, and Sponge V2, which offers meme fun with its great Play -to-Earn game.
2024-02-17 11:35:21
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