🪙 BlackRock boss predicts $700,000 Bitcoin. - Larry Fink says there is momentum towards the institutional adoption of the crypto currency. - RT
(www.rt.com)
💰 WAG THE COINS 💰
Interesting. Any specific reasons as to why that is?
There are only 21 million Bitcoins, but some have not been released into circulation yet. New ones are released into circulation as rewards for miners securing the network by using insane computers to solve complex math problems to confirm transactions on the network. When a miner completes a block of these transactions they are rewarded in Bitcoin.
The main reason is that after a certain number of blocks are completed the reward for miners gets cut in half. The amount of time it takes to reach the next milestone where the reward is cut in half is about 4 years. Thereafter, there is supply shock and the price increases. Then as things pump people start to sell off and invest in alt coins so the price drops, until the halving happens again and there is another price shock.
Outside factors can also contribute to pumps in value or dumps if bad news, but largely the price over the course of its 12 year life is tied to the 4 year mining cycle.