Binance has a “vault” of $1,000 million… and it just filled it with Bitcoin $BTC
Imagine opening a gold mine and from day one knowing exactly how much gold you will be able to extract: 21 million ounces. Not a single more. Moreover, every certain period, the rate at which you can extract that gold automatically halves.
That is exactly Bitcoin. Only 21 million BTC will ever exist throughout history. Never more. And the rate at which new Bitcoins are created halves approximately every 4 years. This event is called Halving.
And why does it matter? Because when there is less of something new entering the market but the same people wanting it, the price tends to rise. It’s the most basic law of economics: less supply, same demand, price rises. Like when avocados are scarce and suddenly a kilogram costs double. 🥑
Today Bitcoin hovers around $64,000 dollars, far from its all-time high of $126,000 reached in October last year. Many see it as a decline. Others see it as an opportunity, precisely because they know that Bitcoin production is decreasing and the next Halving is approaching.
How do you see it? Decline or opportunity?
Let me know below 👇
📌 Tip of the day: Bitcoin is not infinite. This programmed scarcity is one of the reasons why many people compare it to digital gold.
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