Bitcoin, at press time, was trading around $8.8k on the immediate next day of the 3rd Bitcoin halving which happened on May 11, 2020. Bitcoin news has leveled up social media as well, as the world as they got ready for the major event—Bitcoin halving.
Bitcoiners believe this block reward halving that happens every 4 years to be the start of a new era, a new year and a new beginning. The emergence of new Bitcoins is due to the mining process and for all the pain that miners face during the process, they are rewarded with Bitcoin depending on their speed and accuracy of mining.
Bitcoin was first known to the world in 2008 and has been in the news since then. And thereafter the halving happened in 2012 for the first time followed by next in 2016. Understanding the chronology and news that followed, we now believe that the trend after the recent event will be nonpareil to that seen after 2012 and 2016 halving due to mass awareness and adoption after the 2017 bubble mania when the price of Bitcoin spurred to $20,000.
The latest market news shows that Bitcoin and cryptocurrencies have been gaining an edge above the traditional investment assets recently. Previously, this area of investment was the least discussed due to the volatility and risk factor involved when compared to other traditional options like gold, stocks, bonds, commodities, oil, etc.
Now, when the world is dealing with the global Pandemic and all the investment avenues have turned null and void for the longest term, the economy coming back to normal looks like a dark space.
To combat these losses and support the citizens, governments have come up with quantitative easing and if the situation slips out of hands, the quantitative easing will get to the worst aftermath that one could have ever dreamt of. This time the recovery is not going to be as it happened after the 1930 and 2008 recession. The free money injected into the economy is an entrance to the upcoming hyperinflation. It has been now that Bitcoin and blockchain based crypto took over the latest news all over during this time when the massive institutional investors started believing in the power of Bitcoin as it stood still and kept growing when the rest of the options fell on their knees.
Now, when the latest event happened on May 11, the news and updates attracted many investors and they joined the network in 2020 due to the Bitcoin halving hype and the previous trends. Moreover, many entered the network when the cryptocurrency was edging an ATH around $20k in 2017. When the crypto space and cryptocurrency trading has lured many “Will Bitcoin price increase in 2020?” has been the widely asked question of the year until now due to the 3rd halving year.
To answer this I will definitely look back and calculate the previous growth over the past eight years after the 1st and 2nd halving. According to historical data, Bitcoin has always shown an amazing price rally before the halving and a small price dump, consolidation, and a price pump after the event. You can count on Bitcoin Optimizer if you want to make good money from Bitcoin after this Bitcoin halving event.
However, currently the situation seems different as the trading price of Bitcoin on the day of halving was around $8.7k to a major extent and had nosedived below the 10-week high at $10k. But this time, many analysts believe in having a near-term rally which may take place after the Bitcoin halving, inversing the previous trends.
Alongside, many analysts and crypto veterans as per the news believe that Bitcoin is not away from the day when it will reach a million-dollar leaving the financial sector awestruck.
Bitcoin is at the mid 10's and people worry. LMFAO!! Why do you pay attention to weekly fluctuations? Look at the past few months FFS! It's rising drastically. I'm still positive about my $1 mil BTC price by the end of 2020. Alt coins like MTC and Apollo will rise ten times more.
— John McAfee (@officialmcafee) July 14, 2019
And even if we are enough calculative as per the previous growth after halving, Bitcoin should grow as much as $400,000 or $1,00,000 considering both the situations respectively, over the next 4 years until the next halving in 2024. This is nothing but an average of growth percent over the past 8 years and 2 halvings as the Bitçoin price rose 6900% in 2012 in a four-year span until the next halving in 2016, and approximately rose by 1,250% from 2016 until now after the second halving.
Well, looking at the growth, data and related news updates, one cannot get less excited to be a billionaire… right? But, is this even justifiable amidst the unprecedented situation and we cannot even eliminate volatility which brings me to answer the 2nd important and widely asked question as to “What will be the worth of Bitcoin in 2020?”
Aligning the answer of this question to the previous question’s answer, the global crypto market is highly volatile and for years it was believed to be nothing but a gambling space until the analysts equate the change in price of the blockchain based cryptocurrency to economics rule of demand and supply.
Moreover, because of being decentralized, it raised many questions such as bitcoin being a digital scam as it did no justice to any specific basis or fundamental for the price change.
Moreover, there was no reason for the people to not believe in the news circulating in regard to these scams for the longest time until a secure gateway was created after people started understanding the concept of Bitcoin network. The Bitcoin prize giveaway scams in which hackers mailed you on your email address about free giveaway and you supply them your name, email address & phone number to claim the prize. This was how the market was or how the majority of bitcoin scams were for the longest time after people went crazy looking at the 2017 price spike, as per the related news..
Getting back to the question after the trail of related messages, a million mark is possible, but that will lead to an inflated value for which the investors will pay more than the people in debt due to the Fed’s almost unlimited quantitative easing. Ultimately, letting the investment industries roll on the fundamentals instead of random factors shakening the entire financial space and letting people be skeptical about their investments and money.
With this the most exhausting question about which the beginners would be worrying the most is “Why is the price of Bitcoin dropping?” Until now we have known the potentiality of this digital blockchain based money which has taken the limelight all over, but the major question that lies is if such is the power, why is the price dropping? Since, volatility is the core factor of the financial investment market the dynamics of price keep changing.
Moreover, before the supply cut due to halving, miners try to hug as many bitcoins as possible. Later. If too many miners started selling the freshly bought bitcoin to pay out for their mining machinery and operations, the market and the exchange can be suffocated or suppressed. “If the price of bitcoin goes down, it may force weaker miners to wind down their operations,” said Jerry Chan, chief executive of TAAL, a publicly traded crypto mining company focused on bitcoin offshoot BSV.
“They are selling the bitcoin in their treasury to pay off their financial commitments to the hashing farms for hosting and electricity. That constant liquidation is flooding the market to the downside, making it harder for other miners to continue to operate at a break even or profitable manner.” And, currently bitcoin miners are gawking the price like never before.
The independent digital currency based on solid technology is also considered a hedge against the traditional markets by one of the institutional investors Paul Tudor Jones who owns a stake in Bitcoin. This went viral as a big news a few days before the halving which led the major institutional investors rejoice about their decision of investing in Bitcoin. Despite the falling price bitcoin holds, it continues to rule the hearts and people continue to embrace it.
Bang bang! @JoeSquawk now owns Bitcoin ?
— Pomp ? (@APompliano) May 12, 2020