The hype is over. The Bitcoin Halving 2020 gets completed, and the next halving will occur in 2024. Bitcoin is great again.
The CNN Business reported about Bitcoin Halving. CNN made a comparison between the Central Banks across the world geared towards a printing spree versus how Bitcoin the popular digital currency is halving, facilitating scarcity. Despite the qualitative numbers of Bitcoin production going down, the demand is only increasing per the master media.
The BBC tried to explore the much-hyped Bitcoin event. The BBC expressed that the hyped adjustment for Bitcoin has reduced the rate at which a new coin is created. The BBC clarified that unlike currencies like the Dollar, Pound, or Euro, the digital currency does not have central banks to regulate their supply. Reportedly, it also expressed that the declining price will make the price less attractive to Bitcoin miners. Some miners might want to switch over to profitable cryptocurrencies.
Reuters reported that in the longer term, the price for Bitcoin is going to be higher. Further clarified that fiscal, monetary stimulus into the global economy as being the reason that will ensure interest from institutional investors, who are looking for alternatives to the modern government-backed currencies
Forbes clarified that experts think that investors should buy only if you are holding for the long haul.
Sydney Ifergan, the crypto expert, tweeted: “Bitcoin (BTC) Investors are level headed these days as they anticipate not only the uptrend, but also know there will be price going down. They are in the game, expecting both.”
Bitcoin Price Discovery System
The demand and supply creating the sell and buy in the cryptocurrency market is looking for a robust and reliable price discovery system. Currently, there is a bearish market sentiment for the BTC. There is an increased concern that the price will drop down further. Worth mentioning that several investors are looking at options contracts that are priced low.
Bitcoin miners are not optimistic about the short term situation immediately after halving. Several miners took to the advantage of the pre-halving 10,000 spike situation to improve on their operating capital. Miners are extending their operational capacity to buy new machines to raise capital to build out new facilities. Miners are cautious, and they need to have a breakeven price at some point.
Reportedly, the current breakeven price is somewhere from $5,000 and $6,000 per BTC. The price of the BTC was trending at $8,940 at the time of reporting.
Credit: Source link