When the bitcoin was originated, it was set on a network that allows all members of the network equal power and utilizes the same currency no matter where they are located. Upon the development of this digital currency was the intent of halving the bitcoin on four-year intervals. The reasoning behind the halving is to reduce the number of bitcoins generated and increase the bitcoin reward for those mining. This maintains the value of the Bitcoin as the crypto landscape shifts into a more stable environment over time. While the effects have shifted the crypto landscape with each Bitcoin halving, this most recent halving was concerning with the COVID-19 pandemic and the fact that newly created or mined bitcoins would produce only half of the daily amount and would reduce the supply in an already unstable market. Some forecasts were not promising for Bitcoin and cryptocurrency.
Every time the Bitcoin has experienced a cut in the block reward, the most recent halving of bitcoin has started a shift in the Crypto Landscape and cryptocurrency. On May 11, 2020, this was the third time that the bitcoin experienced a halving since its development. Among the pandemic breaching each corner of the globe and industry, the impact of this halving that was set to take place incurred lots of concern and speculation as to what this will mean moving forward for Bitcoin. Bitcoin is designed to have interval halving. The halving is not related to market changes to special events. Below are the effects that have started to develop due to the latest halving of the bitcoin.
Growing HODL waves in the bull market
Glassnode is responsible for the metric used to determine the crypto market and create potential forecasts. One of the effects of the crypto landscape following the Bitcoin halving is the HODL waves that are continuing in the bull market. The bull market in any trading economy is ideal due to rising prices and the positive encouragement of trading. These waves are generated by the data gathered around the amount not spent on the bitcoin transactions to date. This data is used for forecasting and predicting the potential of the bull market and what can be expected in the months to come. With these bitcoins halved, their value is likely to increase with fewer coins available.
It is showing signs of trending into the bull market is positive for the crypto landscape, especially as it continues to develop following the most recent halving. With even fewer bitcoins being mined daily and an increase in the prices per coin due to a limited supply. The current trend is similar to optimistic future predictions from the past and is resonating well with investors and forecasters who are steadily reviewing the market.
Positive bitcoin health & future
The latest data shows that an increase in bitcoin activity was continuing to rise just days following the halving in May. The health of Bitcoin was questionable initially with the pandemic affecting economic markets around the globe. Many expected it to make a plummet like other industries, especially with many industries frozen or suffering substantially from the pandemic. However, the health of Bitcoin continued to rise positively and is showcasing a steady path for this shortly. This was not what was being predicted, as researchers expected the activity to decline at similar rates as traditional currency and economy across the globe.
Since the development of Bitcoin, the hash rate factor has been used endlessly as an indicator of health for Bitcoin and its effect on the crypto landscape. The hashrate did experience a sudden decline following the halving of the bitcoin, but it quickly rebounded and began a positive trend right away. This trend has been steady growth, maintaining the health of Bitcoin and indicating that the immediate future of Bitcoin is healthy and thriving. This growing interest in Bitcoin comes at the beginning of the COVID-19 outbreak and how the initial drop in Bitcoin allowed new interest and members to take advantage of the supply and reliability of the crypto landscape through the early stages of the pandemic.
Changes in volatility
Volatility, in general, is used to measure the risk of return in the market, based upon the market index. The volatility of Bitcoin following the halving did affect the crypto landscape. The volatility of Bitcoin and overall cryptocurrency began to reduce after the halving process. This was a surprise to a lot of people as they expected the volatility for Bitcoin to rise after the newest halving process was complete. For those looking to invest in cryptocurrency, this is a positive sign and offers an encouraging outlook on the landscape. Before new members acquire bitcoins and make the investment into cryptocurrency, they refer to the current volatility rates that are surfacing at the time.
While the volatility of the crypto landscape does reduce significantly, this does not mean that the overall risk of the cryptocurrency investment is reduced at the same rate. These positive trends that are happening are showing a promise of a healthy future, but these healthy trends were also not expected based on previous factors before the halving of Bitcoin.
Solidifying the crypto companies throughout the exchange
Now that this is the third halving process since the creation of Bitcoin and cryptocurrency, the companies looking to invest in the crypto landscape is starting to solidify after the most recent halving of Bitcoin. Large companies such as Coinbase and Binance shifted significant investments into the crypto landscape and acquired some of the largest digital asset transactions in Bitcoin history. Binance made their transaction before the Bitcoin halving in May. Following the halving of the Bitcoin, Coinbase acquired the Tagomi brokerage firm. This is a significant transaction since Tagomi was an investor in Bitcoin and Bitcoin Cash.
Following these two large transactions in the crypto landscape, several new investments and transactions have started to accumulate and increase the activity on the crypto landscape, despite some suggesting that the latest halving would cause negative impacts. Because of the positive affects and stabilizing of the crypto landscape, now is the time to take advantage of this growing investment opportunity. This has created a heavily active industry that has been developing and seeing a significant rise in Bitcoin mining since May 11.
Let D-Central guide through the crypto landscape
Attempting to navigate this digital technology and crypto landscape is not always easy for new members looking for more information. Understanding cryptocurrency mining and terms among the bitcoin process can be challenging if you are not already familiar with the process. Receiving quality service for Bitcoin and mining cannot be found with all mining facilities, which is why we strive to make these processes and services as easy as possible for our clients.
If you are wanting more information on Bitcoin and would like to make your move into the new future of investing, give us a call today for more details. At D-Central, we are here to answer any questions you may have and provide insight on buying, selling, and accepting Bitcoin.