After the second halving in 2016, the price of Bitcoin (BTC) skyrocketed. The question is will the third halving scheduled to happen in May 2020, repeat the same? As per the analysts, Bitcoin will get superior over Gold so let’s find out more in the following Bitcoin news today.
A Bitcoin (BTC) halving happens every four years. At every halving event, the crypto generation algorithm cuts the block reward by half. The consequence of which is the inflation resistance of cryptocurrency (BTC) because only 21 million Bitcoins will ever be mined. The last coin will be made around the 2140 year. So, the consequences of the next halving of the benchmark cryptocurrency can have a significant influence. History can repeat itself or the unexpected can happen.
Some experts estimate that after the next halving miners will continue to make a profit but only if Bitcoin (BTC) keeps the price range of $12,000-$15,000 and that Bitcoin will get superior over gold. There are others that make the claim that a pre-halving Bitcoin (BTC) rally is on its way, with billions of dollars pouring into the cryptocurrency market.
Writing for The Coinbase Blog, Mike Co, argues in an optimistic fashion about the future of king of cryptocurrencies, after May 2020 halving, by describing the superior condition of Bitcoin (BTC) over gold and fiat currencies. From August of 1971, when the United States dollar ceased to be pegged to gold, Mike Co says: “the dollar’s value has declined, and gold has risen from a fixed $35 per ounce to over $1,500 today.” Therefore, if the source of superiority of the gold towards the dollar is the sacristy, then Bitcoin (BTC) will be quite superior to gold, Mike Co elaborates:
“Gold’s scarcity has been the foundation for a total market cap that exceeds $7 trillion, with demand by global financial institutions, individuals, and central banks. Now, imagine for a moment that there was a base metal as scarce as gold with one special property:
[Bitcoin] can be transported over a communications channel.”
Mike Co also explains that:
“The economics of Bitcoin tend to be resilient and self-balancing. After two halvings in the past that limited rewards to miners, mining power (aka hashrate) has recently reached all-time highs. Or, in other words, as bitcoin’s supply has edged toward its 21 million limit, network security has increased in parallel.”
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