While 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. The event that all Crypto community is expecting is a bitcoin halving next month. Question here is what will be the Bitcoin performance once the event? Let’s analyze everything in detail!
What is 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 the coronavirus epidemic that has led to world crisis as each alternative quality within the world, the Bitcoin value fell considerably. However, it’s recovered some half since it reached below $5,000 on March 16th
Price once halving?
Leading experts expecting that after halving, the price of bitcoins will also be increase 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 expert is having their doubts about it.
Exerts are optimistic concerning overall performance once 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 rationale for this is often that except for the numerous market drops on March 12th, 2020, cryptocurrency prices have been stable.
According to the Fintech Specialist Alessandro Rocco Pietrocola, due to the crisis many people are confined in their homes trying to find opportunities 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, so Alessandro Rocco Pietrocola expects to see more and more people start to be afraid their fiat currencies lose its value and to protect from possible inflation they may invest and store more money in alternative ways, including the bitcoin.
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.
If you have any Fintech related questions you can visit his blog at www.alepietrocola.com, he will be glad to help together with his team!