It takes a lot of work to remain competitive in the crypto market, but the future of Bitcoin remains positive. Since 2009, Bitcoin has remained one of the biggest names in the world for cryptocurrency. No matter how the financial market is moving, Bitcoin continues to prove its stability to investors year after year.
Bitcoin’s Strong Roots in the Market
From the very beginning, Satoshi Nakamoto helped develop and mold the entire cryptocurrency world with the inception of Bitcoin. The first Bitcoin transaction was January 12, 2009, by Hal Finney by downloading the Bitcoin software and receiving 10 Bitcoins. Little did he know the impact that Bitcoin would have on the digital finance world going forward.
Within only a few short years, Bitcoin’s popularity grew exponentially, and consequently, competitors emerged, saturating the digital finance market. Even with a multitude of competition, the future of Bitcoin remained optimistic throughout many market fluctuations.
How Has Halving Helped the Future of Bitcoin?
One of the predetermined programming codes of Bitcoin is the halving events that transpire to aid market movement. Set to happen once Bitcoin has reached 210,000 mined block transactions, the assets rewards are split in half. This major event occurs approximately every 4 years to help enforce a synthetic form of inflation for the cryptocurrency market. Because of these halving events, the future of Bitcoin is impacted progressively for a few reasons:
• The decreased rate of mined coins will force a limited supply, therefore creating the supply and demand principle.
• With limited supplies of Bitcoins available, market prices will force a significant increase.
• Reduced rewards for mining coins will force inefficient miners out of the market.
Historical data has proved Nakamoto’s points immensely regarding the positive impact of these halving events for the future of Bitcoin. From the following data, investors can see just how important these halving procedures are for the market.
• 1st halving: November 2012 – market prices jumped from about $11 USD to almost $1,150 USD
• 2nd halving: July 2016 – prices increased to approximately $650 USD at halving, but grew to nearly $20,000 USD periodically
• 3rd halving: May 2020 – prices sat around $8,100 USD, but continue to rise, aiming to break $10,000 USD quickly
Bitcoin Future Predictions Are Encouraging
Crypto enthusiasts are enthusiastic about how Bitcoin will perform in the near future, even amidst the Coronavirus pandemic. Although many other world markets have suffered during the current COVID-19 scare, cryptocurrency continues to perform for investors. The versatility of digital finance merged to the public eye as many users look for alternative methods of payment. This progressing attitude makes the future of Bitcoin bright for investors and users alike.
One major prediction for the future of Bitcoin gives investors hope for significant growth. As market prices continue to rise, many enthusiasts are anticipating that Bitcoin will reach the $20,000 USD mark this year. Even though this may seem like a large market jump for Bitcoin, many digital finance gurus believe anything is possible. Investors need to remember that predictions are just educated guesses on how Bitcoin will possibly react to the market. There are no guarantees for Bitcoin, but investors are confident Bitcoin will yield productive results in the rest of 2020.