The halving of Bitcoin’s supply in the middle of 2024 will put deflationary pressure on BTC.
Bitcoin Halving Event in 2024 (Photo: dreamstime)
Bitcoin Halving Event Will Put Deflationary Pressure On BTC
According to the article from Benzinga, the proof-of-work (Pow) consensus process is used by both Seasonal Tokens and Bitcoin to protect the network and enable trustless peer-to-peer transactions. Nevertheless, despite their similarities, Seasonal Tokens and Bitcoin aren’t exactly the same.
The fundamental distinction between the two systems is that Seasonal Tokens have four distinct native assets, whilst Bitcoin only has one native asset (BTC).
The halving of Bitcoin’s supply in the middle of 2024 will put deflationary pressure on BTC. However, due to Bitcoin’s widespread acceptance, its four-year halving cycle is becoming less predictable and profitable, while historically driving price appreciation. The isolated trading impact of the halving is made more difficult by its widespread use, which makes Bitcoin more susceptible to other factors like regulation and macroeconomic conditions.
Seasonal Tokens, an ecosystem that provides regular, predictable trading chances to increase wealth even with a constant token price, provide a solution for this problem.
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Bitcoin Halving Event: The Difference Between Bitcoin and Seasonal Tokens
Since it was the first cryptocurrency, bitcoin serves as a standard for all subsequent coins, or altcoins. It uses a decentralized blockchain to conduct business, doing away with middlemen. Bitcoin’s worth, which is frequently compared to that of digital gold, is found in its rarity, mobility, immutability, and divisibility. Bitcoin is a growingly well-liked alternative asset that acts as an inflation hedge due to its limited supply and deflationary character.
The Bitcoin halving event, which sees the supply of new Bitcoin reduced in half, has historically had a big impact on the price of Bitcoin and the overall cryptocurrency market. Midway through 2024, when the next halving will take place, Bitcoin’s already-low inflation rate of about 2% will be further reduced. The mining algorithm for Bitcoin is designed to automatically carry out this anti-inflationary process until all BTC has been mined by the year 2140.
As a non-speculative substitute for Bitcoin and Litecoin, seasonal tokens are provided. Four proof-of-work (PoW) tokens called Spring, Summer, Autumn, and Winter are part of the ecosystem and are intended to fluctuate in price over several years. By strategically exchanging tokens, traders can take advantage of this predicted fluctuation and increase their holdings, mimicking seasonal strategy changes in industries like agriculture and tourism.
One of the four Seasonal Tokens half its supply every nine months, causing a predictable price fluctuation. On the blockchain, this decentralized procedure enables cross-border peer-to-peer trading. The price of the token that has been cut in half rises as the market reacts to the decreased supply, offering trading opportunities to boost holdings.
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