The third halving of BTC will take place today at around 10 p.m. on block 630,000, and this could lead to another high volatility on the most followed by cryptocurrencies worldwide. Halving is the halving of the reward miners receive, which translates into a decline in money creation.
While some see a depletion of Bitcoin crypto and anticipate a significant rise, as we observed in the previous two in November 2012 and July 2016, this theory implies that BTC is used in mass. However, the use of cryptocurrencies remains tiny compared to world trade and the number of bitcoins in circulation and a reduction in supply has, for us, no impact on the price of Bitcoin.
On the other hand, the craze for cryptocurrency could be a little higher in the short term and lead to volumes and volatility in strong increases.
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Bitcoin and other cryptocurrencies have failed to prove their usefulness in terms of safe haven or international means of payment and the rise in power of electronic currencies supported by the States could allow the development of technology but it is unlikely that bitcoin is chosen if the United States, Europe or China carry out their digital currency project.
Indeed, in our opinion if this type of currency is accepted, the future of most existing crypto currencies will be compromised. Our vision is rather that the reduction of the reward should lead the miners to direct their computing powers towards more remunerative crypto, c which should lead to a decrease in the Hash rate and in the power allocated to this currency and therefore in a probable slower transaction time. This should push users to turn to crypto with a shorter transaction time and further reduce the interest of BTC.
However, this does not detract from the attractiveness of blockchain technology, which is more and more used by companies.
Bitcoin price analysis
Bitcoin graph in daily data
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