The Halvening and Dominance
Bitcoin was the first cryptocurrency created. Today it is still the largest market cap coin. The term "Bitcoin Dominance" refers to how much bitcoins price action determines the movement of the entire market. To include all of the smaller coins that you may not know about.
This is a simple calculation and can be seen on a chart HERE
It is calculated by dividing the market capitalisation of Bitcoin by the total market capitalisation of all cryptocurrencies to include bitcoin.
If you click the "all" time at the bottom of the chart you can see how much bitcoins dominance has fallen since 2015 when it was at around 98%. Although it has fallen dramatically it still has tremendous control over the market.
As we talked about in the other sections, bitcoin is mined in blocks. Each block that is cracked by solving the mathmatical problem rewards the miner 6.25 bitcoins.
Heres the the catch. Every 4 years bitcoin is coded to cut the mining block reward in half. In 2020 it went from 12.5 btc to 6.25 btc (current) This is a supply shock to bitcoin and the past halvenings have created an upwards pressure on the price of a bitcoin. This is one of the reasons many people will say bitcoin is a great investment to counter inflation.
Simply because its becoming more scarce.