Summary:
- A brief intro to PulseBitcoin
- Upcoming PulseBitcoin halving event and what to expect
- Similarities between PulseBitcoin’s tokenomics and Bitcoin’s
- Possible price reactions of the PLSB token to the halving event
If you’re a devoted cryptocurrency enthusiast, you might have come across PulseBitcoin (PLSB), a Bitcoin clone that aims to compete with Bitcoin in terms of functionality.
However, why is PulseBitcoin making headlines today?
Well, it would be intriguing to learn that the cryptocurrency project is about to experience a significant event that could have an impact on its price and adoption. This event is none other than the PulseBitcoin halving, which is scheduled to take place in less than 30 days as of the writing of this article.
PulseBitcoin was launched in October 2022 with a mining fee of 0.25% and a mining reward of 7.5%. Between the launch date and the first halving, which is set for May 28, 2023, PulseBitcoin miners are anticipated to mine a staggering 10.5 million PLSB into circulation.
PulseBitcoin has a variety of functions, such as sending and receiving payments. When its native blockchain, PulseChain, is launched, users will be able to create and utilize various smart contracts and decentralized applications (dApps). Furthermore, users can participate in network activities by mining and earning PLSB tokens, which will help to secure and stabilize the network.
Now, let’s discuss the forthcoming PulseBitcoin halving event and everything there is to know about it.
What is Halving?
Halving, also known as halvening, is an event in the cryptocurrency world that occurs when the rewards that miners receive for mining a new block are cut in half. This is usually programmed to happen after a certain number of blocks have been mined. The halving event happens in order to control the rate at which new coins are introduced into circulation, and to ensure that the total supply of the cryptocurrency is limited. Bitcoin, the first and most well-known cryptocurrency, is programmed to have a halving event occur approximately every four years until a maximum supply of 21 million bitcoins is reached. Other cryptocurrencies, such as Litecoin, also have halving events programmed into their protocols.PulseBitcoin Halving: What you need to know.
PulseBitcoin is a new cryptocurrency project that aims to improve upon Bitcoin in several key areas, such as speed, cost-efficiency, security, and eco-friendliness. Despite having zero affiliation with Bitcoin, PulseBitcoin brands itself as “Bitcoin 2.0”. However, as a new project, PulseBitcoin needs support to gain traction, and that’s where the upcoming halving event comes in.
The halving affects the supply and demand dynamics of the PLSB token, which, in turn, affects the price of the crypto asset. The halving creates a supply shock that promotes buying pressure from investors and creates a psychological effect that boosts the confidence and enthusiasm of the PLSB community.
PulseBitcoin and Bitcoin share several key tokenomics metrics, such as being scarce assets with a limited supply of coins that can ever be created. For both cryptocurrencies, this creates deflationary pressure that increases their value over time. However, unlike Bitcoin, which has a halving once every four years, PulseBitcoin will record a halving every 6 to 12 months, depending on the number of active miners. Also, while Bitcoin will have 32 halvings in total, with the last one projected for 2100, PulseBitcoin will have only seven halvings. This means that PulseBitcoin will reach its maximum supply much faster than Bitcoin, making it even more scarce and possibly more valuable.
In summary, the upcoming PulseBitcoin halving event presents an opportunity for investors to capitalize on potential price increases, and for the PLSB community to rally behind the project. With its focus on innovation and improvement, PulseBitcoin has the potential to make significant strides in the cryptocurrency space, and the halving is just one step towards achieving that goal.
Here’s what will happen once the halving goes into effect:
- The mining fee rate will drop from 0.25% to 0.125%.
- The mining reward will drop from 7.5% to 3.75%.
- The total tokens available for mining in this cycle would be 5.25 million PLSB, down from 10.5 million PLSB at launch. This means that at the end of the second cycle, about 75% of all the PLSB tokens should be in circulation.
How will PLB react to Halving
Although halving events are typically associated with massive price rallies, it’s important to note that market sentiment around the period plays a crucial role in the price reaction, especially for new cryptos like PulseBitcoin. However, looking at historical data from Bitcoin, we can observe some patterns and trends that may give us some clues.
For instance, Bitcoin tapped its current all-time high of $69,000 in November 2021, about 17 months after its third halving in May 2020. This all-time high marked a 684% rally from the day of the halving. The second halving event saw the price rally by 2,900% from $650 on the day of the event to the then-all-time high of $20,000, and this rally came after 17 months as well. Similarly, the first halving event caused the cryptocurrency to reach its first all-time high of $1,100 exactly a year later, moving from $12 on the day of the halving, marking a 9,000% rally.
While these are not exact predictions for PulseBitcoin’s price performance after each halving, they do show us that halvings tend to create massive bullish cycles for cryptocurrencies that have a limited supply and decreasing inflation. The halving has been an almost foolproof catalyst for bullish rallies for Bitcoin (BTC), Litecoin (LTC), Bitcoin Cash (BCH), or ZCash (ZEC).
Therefore, it’s safe to expect that PulseBitcoin’s price will experience significant growth after the upcoming halving event, especially because it’s the first of seven. The PLSB token currently trades at around $0.615 on Uniswap. If we see a positive reaction to the upcoming halving event, we should see the price jump to at least $1.5, marking a 145% increase. On the other hand, the price rally could trigger a return to the November 2022 peak of $3.6, which would mark a rally of about 500%.
