Cryptocurrency News

Single Investors Have Not Appreciated Bitcoin Halving Yet


Grayscale Investment representatives are seriously concerned that many investors are not aware of the value of halving reward for the Bitcoin block yet. The event is scheduled for May 2020. According to Joseph Young’s tweet, investors know nothing about one. And this despite the fact that it happened more than once.

What Is A Bitcoin Halving?

As you know, in the BTC ecosystem, a miner or a group of miners reward for confirming transactions. The reward for the block occurs when the next block is found inside the blockchain. Halving is a reduction in reward for each found block in two times, which occurs at an interval of 210 thousand blocks. It had already happened twice with an interval in four years.

The purpose of reducing the reward is stimulate a fair and transparent distribution of coins, as well as motivating miners to validate transactions in order to ensure the security of the distributed Bitcoin system. In addition, it reinforces the scarce nature of the asset, which has a positive effect on investment attractiveness. In view of the above, Grayscale motivates investors in gold to switch to BTC.

However, on May 1, a special “Drop Gold” advertising campaign was launched. In order to reach as many investors as possible, the advertisement will run for about a year, right up to the immediate halving. 39-second video tells about the simplicity and advantages of investing in Bitcoin. The video demonstrates the guy with the girl rushes around the financial district, in which most people are chained in “golden shackles” and because of this they seem to be unfree.0

The main task of advertising is to convince investors to invest in Bitcoin instead of gold. To expand coverage, representatives of the fund have already agreed on broadcasting on radio, cable television and even streaming services on the Internet.

According to preliminary calculations, the next halving should occur on May 20, 2020. As expected, the reduction in remuneration twice radically change the situation on the Bitcoin market. At least this happened in all previous cases.

How Halving Will Affect The Price Of Bitcoin?

According to the forecasts of investors, the price of Bitcoin will significantly increase with the next halving. Followers hope that this will not be a one-time price jump, but a consistent increase. If you look at the two previous halving and the trends that followed, then the expectations of Bitcoin enthusiasts have every chance to justify themselves. The data shows that during the year after the last halvings, the cost of Bitcoin in dollar terms increased significantly.

For long-term investors with a high tolerance for risks, a combination of factors such as price collapse, improved fundamentals, relatively strong investment activity and the upcoming halving can be indicators of a profitable entry point to the BTC market. This is especially true for investors who have a strategic approach to investing in Bitcoin.

A little worrying is the fact that despite marketing strategies, an increase in public awareness and publication in the media, in fact not many investors think about Bitcoin, and even less halving. At the same time, it is encouraging that companies like Grayscale set themselves the goal of increasing the level of education of investors and the public in the subject of cryptocurrency.



View original post

Show More

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button