The recent spike in the value of cryptocurrency is no coincidence. World events fueled a storm of investing, but the primary factor in crypto’s success is the predictability of Bitcoin.
Since Bitcoin runs on an automated cycle, It is one of the most consistent financial systems in the world. The spike in 2021 followed the automated halving event in 2020 and it has reliably followed this cycle since 2008.
The halving event is when the reward for processing Bitcoin transactions (Mining) is cut in half. For example, the impending halving in May of 2024 will reduce the per-block reward from 6.25 BTC to 3.125 BTC. This amount is shared worldwide and guarantees that the total amount of Bitcoin will never exceed 21 million.
A rise in Bitcoin is accompanied by a consistent rise in other cryptocurrencies. Better technologies and stronger internet following tend to outperform small projects but, for now, all coins generally follow Bitcoin.
It’s interesting to note that even historic coinage tends to increase in value in time with the cycle.
Conclusion:
After 14 years, Bitcoin is clearly stronger than ever. The cycles are recognized by more people worldwide every day. What makes it the most valuable digital currency? Limited supply, being the first, or lasting the longest?
