Is Bitcoin Crazy Game or Its Time Is Yet to Arrive? |

The crypto community claims it makes sense to buy bitcoins, as ordinary money will become less and less valuable due to all the trillions that central banks are pumping into the financial system. Is it really like that?

In mid-May, Bitcoin had a very important week despite the impact of the coronavirus pandemic on the financial market. We are talking about a new halving in mining this cryptocurrency. Bitcoin passed its third half fairly peacefully, and for the moment after that, it was worth a little over $ 9,000.

What does that actually mean? Now it's harder to mine bitcoins, so their total is even smaller, which means the reward is half as low. Miners were rewarded with 6.25 bitcoins for each newly created block (previously 12.5). That is why it is now more difficult to mine new bitcoins, since the offer is limited, which should be reflected in the constantly rising price.

The opposite happens with the currencies of individual countries. Many central banks tirelessly print dollars, euros, pounds, yen to prevent a severe recession. The crypto community therefore claims that it makes sense to buy bitcoins because ordinary money will be less and less worth central banks to pump into the financial system because of all the trillions.

Are you suspicious of Bitcoin?

As a result, there will be a general price increase sooner or later. In this case, Bitcoin would be similar to the protection against inflation that gold once offered, which is why some reputable investors have recently started buying Bitcoins.

The violent actions of the United States and other governments and central banks around the world have created fear of inflation and an out of control accumulation of debt. Since the onset of the corona crisis, however, investors have turned to dollar security.

Bitcoin, as well as other digital currencies whose offerings have been programmed to shrink to their maximum, seem to be the perfect protection in a world where investors continue to strive to protect their portfolios from the behavior of world central banks.

If Bitcoin successfully grows to a safe haven and protection against inflation, some analysts see that its value will accelerate over the next few years, which could lead to a record high of $ 20,000. This is how you can act BTC to USD.

Regarding the consequences of halving Bitcoin, it is clear that this could spark renewed interest in this digital money as there are only a limited number in circulation.

Investing in Bitcoin – gambling or not?

The question is whether Bitcoin offers investors a new way to make money, as people are looking for new ways to make money in these challenging times. Bitcoin is just a currency, in addition you can invest in Ethereum, XRP, etc.

In addition to technical things, you also need a bit of luck – mining bitcoins is like a needle in a haystack. So far, 17 million have been mined and mining is becoming increasingly difficult.

Given that Bitcoin has more than doubled its prices since "Black Thursday" more than three months ago, almost 85% or 25.79 million addresses with cryptocurrencies are now "in the money". To remind you, the address is given in money (more specifically in revenue) if the current price of Bitcoin is higher than the price at which the coin was bought or sent to the address.

While 85% of addresses are in the black, 10.8% or 3.28 million addresses are penniless or have bought coins at an average price that is above the current market price. What remained was 4.1% (1.24 million) and it was money. This means that the average price they have achieved with their bitcoins is close to the current market level.

Such a structure may not be good for cryptocurrency in the short term. Since most addresses have already benefited, some observers expect sales pressure to come soon or after the mining price halves.

Bitcoin news, blockchain news, cryptocurrency news, news

Julia Sakovich
Editor-in-chief Julia Sakovich

After completing her diploma in intercultural communication, Julia continued her studies with a master in business and management. Captured by innovative technologies, Julia has been passionate about exploring emerging technologies that believe in her ability to change all areas of our lives.