The Next Halving Is Estimated For May 2020
In my opinion, everything surrounding speculating the price of Bitcoin derives from its halvings now which have happened twice before where it saw the largest percent increases in its lifespan.
Inflation Ra…
The Next Halving Is Estimated For May 2020
In my opinion, everything surrounding speculating the price of Bitcoin derives from its halvings now which have happened twice before where it saw the largest percent increases in its lifespan.
Inflation Rate Reduction From About 3.8% To About 1.8%
This is lower than or very close to the inflation rate for some of the wealthiest countries. For example, the US has an inflation rate of 1.7%.
If we look at the top economies in the world based on GDP and we will refer to Investopedia for this: https://www.investopedia.com/insights/worlds-top-economies/ we can look at the top 5: USA, China, Japan, Germany, and the UK.
Now we look at their inflation rates of various countries which I will refer to https://tradingeconomics.com/country-list/inflation-rate for.
USA – 1.7, China – 2.8, Japan – 0.3, Germany – 1.4, and UK – 1.7.
Clearly, there is a correlation between low inflation rates and the wealth of a nation, so when Bitcoin drops from a whopping 3.8% to 1.8%, we should expect to see major changes. Not only that but when the next halving occurs, the inflation rate will be ridiculously low.
Previous Increases After Halvings Have Been Enormous
The first halving saw an increase of almost 8000% and the second saw an increase of almost 3000%. If history repeats itself, we may see somewhere close to a 1000% increase. We all know though that we shouldn’t simply rely on history to repeat itself, it’s not a reliance on that and more so a reliance on the fact that people will rally when miners inevitably decide to sell at a much higher price to afford to cover their electricity fees, etc.
Supply and Demand
Bitcoin has a limited supply and thus it is a commodity like gold. Given that the production will be cut in half, it only makes sense that miners will either stop mining it from lacking profits, or they will sell at a higher price meaning that one way or the other, the value is either going up because if it’s more challenging or ..
