2020 Bitcoin halving underlines crypto is mainstream
Monday saw the highly anticipated Bitcoin halving event take place, only the third in the history of the event.
These halvings happen every four years, and as of Monday’s 2020 halving, the number of new Bitcoins issued every 10 minutes dropped from 12.5 to 6.25. The halving happened on block 630,000.
This historic event has shown in two ways how secure Bitcoin’s long-term future is.
First, the Bitcoin price has been steadily increasing ahead of the halving event. Almost three-fold over the past three months, falling back just before and after the event.
This highlights the mounting retail demand for Bitcoin as investors recognise the burgeoning influence and the massive opportunities of cryptocurrencies in an ever more tech-fuelled world.
Taking this into account, crypto investors – ‘whales’ – accumulate cryptocurrencies at far lower prices then start a sell-off to make the most of the prolonged growing demand.
Second, history has taught us that after the post-halving price drop, a subsequent bull run follows.
Past Bitcoin halving events have led to notable price hikes. Indeed, the previous 2016 halving sparked a 300% rise in Bitcoin’s value.
As such, four years on, I believe the post-halving rally may likely be even more dramatic as there is more understanding and awareness of the long-term use and need for digital currencies than ever.
During these unprecedented times, as central banks around the world increase monetary supply, this will drive the prices of cryptocurrencies up further still.
Traditional currencies are devalued, and inflation worries rise with mass quantitative easing, which we’ve seen recently in the U.S. when the central bank added trillions of dollars to the money supply.
These measures will undoubtedly lead more investors to consider decentralised, non-sovereign cryptocurrencies.
Looking past the 2020 halving event, digital currencies are becoming increasingly recognised as the future of money due to mounting mass adoption and the real-world issues they address.