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Luke Martin Podcast Host At Coinist Claims Bitcoin is Underpriced

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  • Coinist Podcast host, Luke Martin claimed that irrespective of the fact that a halving is scheduled soon, Bitcoin is not priced as high as they should really be.
  • Bitcoin would see the reward going down from 12.5 Bitcoin to 6.25 Bitcoin for each block that gets mined successfully.
  • The bitcoin bubble complimented with the pricing would have a huge impact on the computer hardware industry.

In a tweet today, Coinist Podcast host, Luke Martin claimed that irrespective of the fact that a halving is scheduled soon, Bitcoin is not priced as high as they should really be.

It is a well-known fact that Bitcoin rewards would be getting halved in the month of May, this year. Halving is a normal phenomenon in the case of cryptocurrency, and it happens once every four years. This halving would be the third for Bitcoin so far. Other cryptocurrencies are going to see halving soon.

During this halving, Bitcoin would see the reward going down from 12.5 Bitcoin to 6.25 Bitcoin for each block that gets mined successfully. The previous halving occurred in July 2016 and November 2012.

Bitcoin is halved as they follow the law of supply and demand. Once 21000 blocks of Bitcoin is mined, the reward is halved to reduce the quantity of Bitcoin. This halving reduces inflation and allows more coins to be circulated in the market without affecting the value significantly.

However, the current price of Bitcoin, which is $10160, includes the halving factor or not is a big question. If the answer to this question is no, then it means that the increase in price is dictated by halving and would compel people to buy coins or mine more aggressively.

If they are priced in, then there won’t be a lot of change in the value of Bitcoin once the halving occurs. This would mean that people don’t need to worry about it.

Another Bitcoin bubble complimented with the pricing would have a huge impact on the computer hardware industry. One might recall the Bitcoin bubble of 2017 when the value increased so much that people became desperate to mine as many bitcoins as they can before the bubble burst. This led to a huge shortage of graphics cards which are used for mining, and their prices skyrocketed.

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