Crypto Currency & NFT’s Explained in under 5 Minutes…

Bitcoin halving is a process that reduces the amount of bitcoin that is awarded to miners for verifying transactions on the Bitcoin network. It occurs every four years, and the most recent halving took place in May 2020. The halving process cuts the block rewards by half, reducing the number of bitcoins generated through mining. The purpose of the halving process is to maintain the scarcity of bitcoin by controlling its supply, and this can potentially drive the price of bitcoin higher over time. The halving process also helps to prevent inflation in the Bitcoin network.

The volatility of the cryptocurrency market is primarily caused by various factors, including supply and demand, investor sentiment, news and events, and technical analysis. The Fibonacci sequence and the golden ratio are technical indicators that traders use to identify potential price levels and market trends. The Fibonacci sequence is a series of numbers where each number is the sum of the two preceding numbers, and the golden ratio is a mathematical concept where two quantities are in proportion if their ratio is equal to the ratio of their sum to the larger of the two quantities.

When traders use these technical indicators, they are looking for patterns and levels that indicate support or resistance to price movements. Support is a level where the price of an asset tends to stop falling and start rising, while resistance is a level where the price tends to stop rising and start falling. Traders also use technical analysis to identify trends and momentum in the market.

NFTs, or non-fungible tokens, are unique digital assets that are created on a blockchain. They can represent a variety of assets, including art, music, video game items, and more. NFTs are often traded using cryptocurrencies like bitcoin, which can be volatile and subject to price fluctuations.

However, in the long run, exposure to cryptocurrencies and NFTs can potentially be beneficial for investors. As inflation rises, the value of traditional fiat currencies can decrease, which can drive up the price of capped cryptocurrencies like bitcoin. The finite supply of cryptocurrencies makes them less susceptible to inflation than fiat currencies, which can make them a more attractive investment option.

🚨Investing in cryptocurrencies and NFTs can be risky due to their volatility and unpredictability. It’s important for investors to conduct thorough research, seek advice from financial professionals, and carefully consider their risk tolerance and investment goals before making any investment decisions.