For weeks, if not months, the buzz in the crypto-world has been the Bitcoin halving. That happened on May 11, so what happens now?
The change in mining rewards from 12.5 Bitcoin to 6.25 Bitcoin happened, but the impact of this was never expected on the same day.
The buzz happened before and will happen after the event. The halving means that the miners will have half as many Bitcoins that they need to pay for the mining process. It means that over the coming weeks and months, there will be less selling pressure which means buying demand will have a greater chance of pushing prices up. And the miners, the key people in the Bitcoin ecosystem, need the prices to go up because they just had a 50% income cut.
For all the speculators on Bitcoin price rises out there, like me, be very clear, the purpose of Bitcoin is not to make you or anyone else money. Its purpose is to be a currency. So the only people who really matter are the users of the currency and the miners who make the system happen.
Also ‘Blessed are the Speculators’ as they will drive the Bitcoin price up to a value whereby the market will justify its value by users using it as a currency. Either as a medium of exchange or as a store of value (digital gold).
Now, the focus on the Bitcoin speculators, with the halving completed, are the fundamentals. People are increasingly using the currency. People buying the currency, and most importantly, the large financial institutions are buying it.
Will this happen? Absolutely. Every week we get more news of new institutional grade exchanges, asset custodians, etc. It all builds buying pressure which eventually will mean prices will trade to levels that will attract a flood of speculators. This will drive the market into a FOMO boom to reach a level that is justified by usage. $100,000 per coin is the logical level.
So keep your eyes on the news and make sure you own as much as possible today.