On May 11th, the highly-anticipated Bitcoin halving has been completed and as a result of that, the block rewards for miners dropped to 6.25 BTC, which previously was 12.5 BTC. That was Bitcoin's third halving since its inception, and it's arguably the most anticipated event of leading cryptocurrency's young history. Lots of people tuned in for the halving, and the people were waiting it like it was a New Year's Eve. Now it's passed, and we can now look forward what will this halving bring to cryptocurrency industry in general.
Halving is Over, So What's Next?
From now on, Bitcoin miners will receive 6.25 BTC for every block they will mine. That means their revenue will drop significantly, if Bitcoin price remains the same level. However, many analysts expect the price will increase in the future, with claims suggesting Bitcoin will break its all time high, which was $20K in late 2017.
People are saying that Bitcoin's reduced supply, combining with enormous levels of money printing spree, will take the orange coin's price to the new highs. If we look for the past halvings, we'll see the price has been exploded after both halvings, with the last halving resulted as a %103000 spike for Bitcoin's price, taking BTC to the $20K level.
Bitcoin Price Predictions
If the history repeats itself, we can expect to see mind-blowing gains for Bitcoin. For example, Pantera Capital CEO Dan Morehead stated last month that the price would be around $110K in August next year. Morehead said that his prediction based on other two halvings, and $110K level he mentioned is the least of the potential price, adding the price could reach up to $500K in the same period.
Apart from what happened in the past two Bitcoin halving's, the current situation around the world also means that significant price gains could happen for BTC. As the central banks from around the world continuing to drop the interest rates and printing money out of thin air, the global supply of fiat currencies has reached to all time highs.
Analysts argue that these moves will result with inflation. That means that the value of many of people's savings will dry in the near future. To hedge that risk, lots of investors sees value in Bitcoin as Wall Street giant Paul Tudor Jones stated earlier that he bought Bitcoin with 2 percent of his wealth. Jones argued that Bitcoin is a great way to hedge against the inflation, which we can all agree given the fixed supply of Bitcoin, unlike other fiat currencies.
Bitcoin as Safe Haven Asset (Digital Gold?)
Halving means Bitcoin's supply will reduce by 50 percent in the next four years. Many people saw that event in a major step towards Bitcoin's safe haven status in the economy. However, it's too early to say that Bitcoin is a safe haven asset. The leading cryptocurrency has its own flaws, such as high transaction fees and scalability issues, but we can say that Bitcoin is on its way to claim this status. Bitcoin could of course could become a digital gold, but if you compare Bitcoin with gold, we can say that Bitcoin still has a tiny fraction of gold's total market cap.
Bitcoin has the certain characteristics to become a safe haven asset but it still needs to prove he's worthy of it. Halving is a great step towards that, but no one can predict what the future holds in economy, especially if you are talking about cryptocurrencies.
Halving's Impact on Other Cryptocurrencies
Price predictions aside, let's see what will happen in the future for cryptocurrencies in general. Obviously, Bitcoin will maintain its 'king' status in this industry, however we can expect that lots of different competitors will emerge for Bitcoin.
First of all, Proof of Work is a troubled concept for consensus algorithms. Proof of Work system consumes lots of energy and the authorities say this is harmful for the environment. Bitcoin's network consumes more energy than many countries in the world, so we can expect to see increased interest towards alternative consensus mechanisms to earn money.
One of them of course would be Proof of Stake types of coins. To earn it from the Proof of Stake cryptocurrencies, you don't need an equipment, hardware etc. All you need to do is just to stake your coins in a certain wallet for a fixed period amount of time. By doing that, you can earn an additional income during this period. Considering the world is going through unprecedented times, any additional income would be very welcome.
If you decide to make an investment for Proof of Stake types of coins, then MyCointainer would be your go to choice. On our platform, you can find lots of different options for staking. Each coin has their own pros and cons, and you can easily decide by making a small research about them.
Staking can of course bring you profits. but on MyCointainer, you can earn much more than average staker by subscribing one of our POWER plans. Our POWER plans designed for our customers. We want them to earn as much as possible. By subscribing our POWER program, you can multiple your earnings with shared access to masternodes, and you can keep your earning to yourselves by not paying staking fee, which is around 7 percent if you decide to do it by yourselves.
Pre and post halving period caused lots of volatility on Bitcoin and other cryptocurrencies. Many people expecting this to continue from now on. So that means we have good trading opportunities for lots of different cryptocurrencies and we have to make sure that we will receive profits from that. Trading is of course a great source of income but how about bonus on every time you exchange on MyCointainer?
Yes, you read it correctly. If you exchange your coins on our platform, you will receive bonus in the form of Proof of Stake cryptocurrencies. This is the kind of thing that many exchanges can not offer so you have to take benefit of that. You can get your bonuses and it's up to you to decide what will you do with them. Many of our customers selling these bonuses to turn them into fiat, but lots of our customers are also keeping those coins for future profit.
As you can see, the halving event was very important for Bitcoin and other cryptocurrency industry in general. Since its inception in 2009, Bitcoin has established itself as a valuable asset to many investors, but it has yet to receive substantial amount of interest from the big boys of the financial markets. Halving could definitely change that. And this will bring the attention to the other cryptocurrencies. And when it comes to that, we can easily say that Proof of Stake types of coins will draw the mainstream media's attention.
We now have time to plan our next investments, and if Proof of Stake coins are your options, then MyCointainer is ready for you. Be careful about the current pandemic situation and stay safe! We wish you all the best in your future investments, hope the luck will be with you all the time!