Every four years, a magical event takes place in the mysterious realms of Bitcoin Mining. The event is known as ‘Bitcoin Halving’ and reduces the pay out to miners by half, every four years. This year 2012, the halving was supposed to reduce the Bitcoin rewards from 12.5 BTC t0 6.25 BTC.
In this article, we are going to assess the impacts of halving on the Bitcoin price. We are also going to look at other major developments, which are equally important for all the investors and other stakeholders.
Finally, we are going to look at certain conjectures and price speculations about the Bitcoin price; and where it will stand at the end of the year.
Bitcoin Halving: Top Five Things to Note
- The Halving was more of a Non-Event-
No one from amateurs to experts predicted the halving to have any major effects on the price. Many believe that this was because the rally of Aril and March had already been filtered in and reflects on the price rally during the last few months.
Many also believe that the Coronavirus pandemic was also responsible for no-double digital gains on the halving front. While some were disappointed, others point to the maturity of the cryptocurrency and state that it should be perceived with positivity.
- Investor Confidence remains Bullish after the Halving-
Most investors, including billionaire Michael Novogratz believes that Bitcoin is going to surge quite a bit in the next few months. This confidence is shared by the major names in the Bitcoin investment world even after the halving event failed to be a showstopper of kinds.
Investors are reposing faith in the fact that Bitcoin showed a great run in the months of March and April, even when other assets were performing poorly because of the Coronavirus pandemic. Given the current scenario in the world, investors believe that Bitcoin is holding on to its value.
- Quarter of the Miners drop of the Mining Activity Grid-
According to a report on a reputed Bitcoin platform, almost 30% of miners engaged in mining activities are looking to wind up operations. They point to the fact that the profitability is simply not there anymore to continue mining.
The reduced supply and lessened incentives are not financially feasible. Especially when miners are using outdated tech, which drains electricity more. Miners who have shifted to the newer mining rigs are expected to continue mining.
- Bitcoin price Projections for the year 2020 are going to be-
Almost everyone in the industry concurs that Bitcoin has come of age as a mature currency. People are also looking at the fact that Bitcoin has stabled out near the 8K mark. This is a great sign for investors who were always hedging it to be a guard against inflation.
According to investors, Bitcoin is expected to hit the $20K mark by the end of the year. The growing inflation figures in USA and elsewhere are going to help it emerge as a hedge against inflation. With the Federal Reserve printing more money, Bitcoins along with gold are going to stop the devaluations in the society.
- Bitcoin and Halving dominated Social Media-
In the weeks leading up to the halving, social media was abuzz with Bitcoin Halving. On May 12 2020, Twitter registered record figures on the hashtag #halving #BitcoinHalving. In terms of figures, tweets on Bitcoin crossed the 50K mark since the last one-year period.
Social Media also saw major notes of Bitcoin positivity with many people still lauding Bitcoin as the best performing asset in the last one year. This was in comparison to other assets like traditional stocks.
Investments in Bitcoin will continue to grow, as there is a real possibility of gaining huge profits. The post Coronavirus world will be one where Bitcoin and other cryptocurrencies are going to shine. If you wish to invest in Bitcoins, you can visit the login page.