What Next For Bitcoin: Post 3rd HalveningKehinde LAWAL
The 3rd Bitcoin halvening occured on May 11, 2020 and many believe this occurrence is already price in. Should it be, then we will some fall in price, however, this is not all. So what next for Bitcoin?
Below are 3 Things That Would Happen To Bitcoin Going Forward
1. Bitcoin Manipulation
This is not a new thing in the Cryptocurrency space and I don’t expect it to stop anytime soon. Government, Whales and Wall Street will continue to toil up and forth with the price of Bitcoin, shaking day traders out of the market. To survive this, you need to be more futuristic about your holdings. You also need to be more of a swing or position trader than actively trading the market.
2. Fall in Price
Many believe the last Cryptocurrency halving has already been priced in. Meaning the current price is as a result of the halving and price should fall afterwards. I do agree with the notion, and the best way to avert this is to take a short position to hedge the risk or hold some cash so that you can buy the dip.
3. Transition to Real Digital Gold
Bitcoin was designed to be a peer to peer Digital Cash that can be used by anybody, anywhere without the need for a trusted 3rd party or intermidiary. However, things have changed for Bitcoin and it’s no longer on it’s trajectory.
Right now, Bitcoin transactions cost about 0.0005BTC($5) and it’s expected to increase based on the reduced block reward given to miners. If the transaction cost should increase(which is most likely going to happen soon), most people will no longer use Bitcoin for Micro Payment. This will lead to less daily transactions which is not good for Bitcoin.
But that’s not the end of Bitcoin. If most people can’t use it for Micro Payment then they can as well use it as a store of value thus making it a Digital Gold. A lot of people will make long term savings in Bitcoin and would only pay the transaction fee whenever they want to make a very important exchange.
What do you think about this? I’m sure you may not agree with all the points above but still, drop some comments. I will love to hear from you.
To your financial success