Bitcoin [BTC] is experiencing a massive bull run, with no sign of slowing down anytime soon. Several factors have been mulled as possible fuel for this haunting fire, from FOMO, to halving expectation and even an emotional swing.
Mati Greenspan, senior market analyst at eToro, has "strictly" stated that the pump is down to the top cryptocurrency principle of limited supply. Referring to the protocol that was placed in the original white post of Satoshi Nakamoto, says only 21 million Bitcoins can be in supply.
At the other end of the spectrum, the second largest altar in the market, XRP, does not succeed with the bulls, which exhibit minimal gain. Greenspan suggested that the cryptocurrency's relatively weak performance is down to more than half its maximum supply of $ 99 billion in the hands of the parent company Ripple.
His tweet, in full, said:
"The cause of Bitcoin is surging due to the strictly limited offer of 21million coins that will ever be created.
XRP does not have this. Max supply is $ 99 billion , of which more than half belong to @Ripple. "
Many decentralized currency loyalists have lambasted altcoin given the action control in the hands of Ripple. Some have even labeled the crypto curve "centralized."
Greenspan's point about the Bitcoin supply pump works in accordance with the halving protocol, which dictates that the Bitcoin mine reward will be halved when 210,000 blocks are diluted, or roughly every four years.
Bitcoins next halving is scheduled for May 2020, and based on historical price movements, the price pumps three months to one year before halving, as can be seen with the last pump. The mine reward is set to fall from 12.5 BTC per block to 6.25 BTC per block.
According to a report by the crypt analyst firm Longhash, with the mine rewards set down, Bitcoin mining fees will be a key economic incentive for miners. Based on a May 10 report, the mining fees for the best crypto curve are 8 times that of all other virtual currencies combined.
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