Bitcoin’s next halving can boost the price of the cryptocurrency despite the fact that people are disagreeing about the probable effects as we are about to read further in the Bitcoin latest news below.
Bitcoin has gone through a halving process two times before in November 2012 and July 2016 and both times the events marked the start of the next bull market. However, it is an open question if Bitcoin’s next halving will bring an uptrend and if so how strong that uptrend will be. The miners took the stage to debate this issue last week at the World Digital Mining Summit in Frankfurt which was organized by Bitmain which is the Chinese equipment manufacturer and pool owner. The co-founder and ex-CEO of Bitmain Jihan Wu are ‘’pessimistic’’ about the prospect of a price surge after the halving and he suggested that the first two uptrends could have been ‘’catching up with the bubble-and-bust cycle’’ phases at the current time.
Further, he explained that the Litecoin halving in August sent the price plunging and the value shot from $31 to $135 in the first half of the year but then dramatically started to drop in July right before the halving and is now trading around $57.Wu explained:
“Maybe people speculate too much before the halving, and then you can’t sell the good news anymore. Maybe, this time a bullish cycle is not coming yet. During the first and second halving, people didn’t know what to expect, and during the second halving, the scaling debate complicated the situation. Now people are expecting it.”
The chairman of the blockchain software company Bloq Matthew Roszak explained that the maturity of the financial ecosystem around Bitcoin:
“There is a better footing for the Fidelitys, Bakkts and other household names entering the space. All the demand from institutional investors is still crescendoing forward. Custody platforms, insurance, compliance, regulatory is all getting written and this is positive for bitcoin.”
Regarding the halving event, it is very important for the miners since the reward is being reduced but profitability will also be cut in the short term so the old versions of the specialized mining machines known as ASICs and will stop bringing profit to the owners as we saw earlier in the cryptocurrency news.
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