Meanwhile the whole world is discussing consequences of sanitary crisis and economic crash due to COVID-19 officially declared pandemic by World Health Organization, the crypto community is also concerned about one very emblematic event for the whole bitcoin network.
Crypto community is excepting a halving event in a month. After recent events interest on halving event on the Bitcoin blockchain has surged to levels higher than ever seen before.
What will be the Bitcoin performance after the event? Let’s analyze everything in detail!
What is Halving?
Halving — this is so called periodic, pre-coded 50% reduction of the rewards for mining each block on the blockchain. This event will have an influence on the currency’s price and on miners.
In other words, the amount of new Bitcoin created roughly every ten minutes will drop from 12.5 to 6.25.
Exchanges will be affected by the event because they are in of the major part of this chain. They are likely to benefit from any positive market moves
What was the recent dynamic of Bitcoin?
Due to coronavirus that has led to global crisis as every other asset in the world, the Bitcoin price fell significantly. But it has recovered some part since it reached below $5,000 on March 16th.
Price after halving?
Leading experts expecting that after halving, the price of bitcoins will also be increased as lower issuance rate will create a “perfect storm” for the Bitcoin price. Let’s get back to historical data - for example, bitcoin's price rose above $1,000 a year after its 2012 halving. The July 2016 halving saw bitcoin's price around $660 – a year later, the price had soared above $2,000. Another experts are having their doubts about it.
Exerts are optimistic about overall performance after halving
While other industries are suffering significant fall in numbers, complete shutdowns and bankruptcy, the crypto space will remain functional throughout this crisis period. The reason for this is that apart from the significant market drop on March 12th, 2020, cryptocurrency prices have been stable. Moreover, numerous reports have shown that Bitcoin has performed better comparing everything else over the past year.
Due to the crisis many people are confined in their homes trying to find jobs online, so we will see increase in online space, and influx of people into crypto industry. This will increase as the Bitcoin halving event occurs as well.
Apparently, countries have a risk of inflation, as their government prints more money. We can see people start to be afraid their fiat currencies lose its value and to protect from possible inflation they invest and store money in alternative ways. One of these ways is cryptocurrency and bitcoins.
What do you think about the probability of the halving event and Bitcoin perfomance? Feel free to share your experience in the comments below! If you have your question, please write it below, I would be glad to answer your questions or to introduce your project to my team at Astorts Group to be evaluated.
Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the Ceo of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.