Bitcoin outlook 2020
Bitcoin celebrated its ten years not long ago. In the past decade, the cryptocurrency has gone from being known only in certain circles to, with its companion of investors and developers, really starting to put pressure on the world's banks and central banks.
Bitcoin celebrated its ten years not long ago. In the past decade, the cryptocurrency has gone from being known only in certain circles to, with its companion of investors and developers, really starting to put pressure on the world's banks and central banks. In these ten years, two trillion dollars have been made in transactions, which, although in size compared to other means of transaction, is small, so large that it is no longer possible to deny that the cryptocurrency is beginning to find a given place in the global economy.
Although the Bitcoin price hit some strikes in the second half of 2019, the price for the full year 2019 is up over 90 percent in USD. The year, which started just above USD 3700, closed at almost USD 7200, and has since continued up to USD 8000. Regardless of what the story looks like, the prospects for the future are still obviously interesting, and 2020 is expected to be a really good year for Bitcoin for several reasons, such as the upcoming halving and improvements to the lightning network , a payment network that is on top of Bitcoin's blockchain to make transactions with bitcoin faster and cheaper.
Halving
One of the most interesting events in 2020 will be the upcoming halving in May. By halving, then, is meant that the "reward" in bitcoin that miners receive for creating a block on the block chain is halved. Today, miners receive 12.5 bitcoin per new block, after halving the same figure will thus be half, or 6.25 bitcoin.
Historically, halving, which leads to a decrease in the supply of bitcoin, has also led to higher prices for the cryptocurrency. If we follow the previous trend, there are those who believe that the price may well be trading around USD 100,000 at the end of the coming bull market, while other analysts say it is very possible that the halving will be a non-event and will not at all to be reflected in the price.
The purpose of the halves is to prevent bitcoin from losing value over time by controlling inflation and stock to flow.
The beginning of a bull market?
As I said, there are divided opinions regarding whether we are facing an upcoming bull market, if the price will fall further or if we continue consolidation around today's levels.
The outlook for the coming year is thus sparse, but for those who believe in further decline, the level of USD 5800 is important. This means that if the price falls and you still believe in the bitcoin case in the long run , it may be a good idea to start scaling in shortly before - if you dare to wait that long.
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