Bitcoin Value Soars Amidst Future Cuts In Supply
Approximately every four years the amount of coins awarded when an investor mines a new Bitcoin block is decreased by half. The first halving occurred in 2009 followed by one in 2012 and 2016. Taking into accounts the consistent cuts, there is a maximum market supply of 21 million Bitcoins, and it is expected that all Bitcoins will have been mined in the 22nd century.
Understanding that market supply decreases every four years, investors are able to plan for a hike in value.
“When hash power drops, that’s a good time to attack the bitcoin network,” U.S. wealth manager, Andy Edstrom said. “The halving is the one time attackers can prepare and know there are marginally profitably miners active that they can push out.”
As the halving approaches, the value of Bitcoins has also increased. Each Bitcoin is worth over $10,000 dollars, at one point reaching a higher of $10,127. Bitcoins are traded on the Bitstamp exchange in Luxembourg. During the last 24 hours, Bitcoins have increased 4% in value. However, smaller cryptocurrencies are more valuable than Bitcoin.
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