Yesterday, Liteco successfully completed the halving of the four-year period, and the price has also risen, and everyone is happy.
The next halving is in 2023. There are more than four reincarnations in the middle of the four-year period. Basically, every time you see that you are halving, you are not the same person. I believe that you are not chatting with people in the group last year. Let's go.
One day in the currency circle, one year in the world, it is really not fake.
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Then, to say that halving this technical thing seems to be related only to those involved in mining, why is it good? This is also a question that many people asked yesterday. I found that there are many explanations. In fact, they are very far-fetched. However, the "result-oriented" place of the currency circle is said to be good, so it must be explained to you.
First, the miners will certainly pull the plate
The most directly affected by the halving is the miners.
Originally, we have reached a balanced balance of income and electricity bills. Now that the revenue is halved, naturally many mining machines have to be shut down:
The miners, the most mysterious and local group in the world of cryptocurrencies, always exist in various legends of the currency circle.
The miners, in order to keep their mining machines running, then they have to pull the plate.
This is good, can you make it?
Second, the output is halved, the purchasing power has not changed.
Who is the person who sells coins to the market every day? Nature is still a miner.
What does the miner dig for? Of course, in order to make money, even if you don’t sell it immediately, you have to sell the electricity bill. So no matter what, the Litecoin produced every day, a part (or a large part) will flow to the market, creating a selling pressure. The market also needs to provide some purchasing power to catch the sell and keep the price stable. So many people say:
“The miners are the biggest shorts in the currency.”
In fact, this logic is not necessarily right. It should be said that the miners are the most stable shorts in the currency circle. In short, the halving of production has caused the miners to reduce the amount of coins they sell every day, so if the purchasing power is maintained, then the purchasing power will buy the coins in the market, thus pushing the price up.
Just like adding water to balance while releasing water, adding water is still the same, but the water is only half of the previous one, and the pool will naturally become more and more full.
This is also a good understanding of the benefits, it makes sense.
Third, there was a big market after the last halving, this time the same
In fact, this should be the main factor that everyone thinks.
Just as bitcoin will bring bull market after halving every time, people have been “growth” consensus in the past market trend. Many people think that bitcoin will reach a more terrible price level after halving bitcoin in 2020. Not an ideal, but an inevitable event.
After the last halving, the Litecoin reached a new high in the year, so after this halving, the Litecoin will reach a new high.
This is good, it makes sense.
The above three logics, I believe, have covered the main logic that most people think is "half is good." However, the financial market uses the past trend to judge the next trend, but in the currency circle, it often does not work.
Take the halving of yesterday, how many people have already opened the empty list and wait for the halving? In fact, on the day of the last halving, Litecoin actually fell, and many people also believe that "goodwill will definitely fall." However, it is clear that the movement of Litecoin has caused many people to stun, because before and after the halving, the Litecoin suddenly pulled up, and it also exploded a lot of empty orders.
In fact, many people are most concerned about not halving the Litecoin, but as the "Bitcoin Pioneer Army" Litecoin, its action will become a reference for Bitcoin, of course, it is not necessarily an important reference, but everyone is very Before the halving of Bitcoin, I will definitely take this Litecoin halved.
Give everyone a summary and preview.
If Bitcoin is halved in accordance with the rhythm of Litecoin halving (this is the premise), then the halving of Bitcoin will start about half a year before halving (about October this year), then halve the first two The month peaked and gradually adjusted downwards until the market opened again before and after halving.
Of course, the future will never simply repeat the previous history. Then the market will go, no one knows. However, what is certain is that the history that everyone thinks is “half the price before the halving and the bull market after the halving.” I personally think that it will exceed the previous high before the halving, and open the halving market. .
It is worth noting that this market is only for those who hold Bitcoin. It is not for those who hold other currencies. The currency circle that started this year is so simple and boring.
Author: William Chen