The Bitcoin Is Seen Soaring Into 2020 As The Crypto Fund Opens To Those Mom And Pop Buyers

How Is The Bitcoin Sky Rocketing?

The latest news around Bitcoin is that it has already more than doubled in price to surpass $ 8,000 per coin as it is seen rising higher by 2020 in anticipation of what many investors call the next great halvening with the event also called halving in the crypto community occurring every few years when the numbers of coins awarded to Bitcoin miners use computers to process transactions are cut in half. Therefore it is said that halving is used as a means to prevent inflation from decreasing the value of Bitcoin as the next cut is expected to occur in May 2020 and serve as a catalyst for more price gains by the largest cryptocurrency in the world outlined in a detailed Bloomberg report. According to Morgan Creek Digital co-founder Anthony Pompliano, a crypto enthusiast, imagine if daily printing of US dollars were suddenly cut in half forever, the bankers would be FOMOing even though USD isn’t a scarce asset. 

The Crypto Bull Case

While the next Bitcoin halving is slated for May 2020, there is a sharp decline in the block rewards thereby reducing the Bitcoin supply significantly as the demand increases. There were similar events in 2012 and 2016 followed by major increases in the price of the cryptocurrency. Here is the importance of Grayscale LLC that opens up investment vehicle holding the cryptocurrency Ether to mom and pop investors after receiving secondary market trading approval. 

The Crypto Enthusiasts Point to Favorable Supply-Demand Dynamics

It is hereby noted that the creator of Bitcoin was using the pseudonym Satoshi Nakamoto capping the total issuance of the coin at 21million, with a series of halvenings reducing the supply by 50% as should, in theory, make the assets more valuable by 2140 which is when the last coin is slated to be mined as a report by Bloomberg.

Thereby it was found in a survey of 2,500 individuals on Twitter, 61% had said that they expect Bitcoin to continue its price momentum thanks to the halving with a sharp decline in those block rewards that would work to cut the Bitcoin supply significantly while also demand stays strong. Thereafter a supply and demand fundamentals drive the price of the digital coin to new 2019 highs, more investors are seeking to get in on the frenzy further driving up the price of Bitcoin. 

This why Bitcoin bulls are looking forward to the next big halving point to similar events in 2012 and 2016 which were followed by major increases in the price of the cryptocurrency as in November 2012 the Bitcoin was still less than four years old with the price of the digital asset flew to $1000 from just $ 10 in the 12 months following the first halving. It is therefore in the second time around in the aftermath of July 2016’s halving that Bitcoin peaked to an all-time high near $ 20,000 in December 2017. 

How Do Bitcoin Market Environment Change?

The fact is that to be sure not all are so upbeat about the next Bitcoin halving where skeptics such as Eric Turner of Messari Inc. notes that with a sample size of two as it’s hard to assign any statistical significance to the event. Therefore that being said this time around it is much different for Bitcoin which has succeeded partly in pushing into the mainstream as it gains interest for institutional investors where more mainstream investors and hedge funds already own Bitcoin while the price of the digital asset is now also greater influenced by the many Bitcoin derivatives that continue to emerge.

The finding is that this is whereas the Grayscale Investments LLC has announced that this investment vehicle can hold the cryptocurrency Ether opening up to small investors after receiving secondary market trading approval as reported by Bloomberg that thereby the Grayscale Ethereum Trust which was launched in December 2017 has initially only available to be accredited and the institutional investors at a minimum of $25,000 through private purchases. 

According to Michael Sonnenshein, the managing director of Grayscale Investments, the secondary market opens up the opportunity for any investors. Here as Ether comes as the second-largest cryptocurrency it has seen its price skyrocket this year alongside Bitcoin, and after a nasty fall in 2018 Ether has more than doubled in value YTD to reach $273. 

Finally Looking Ahead

Hereafter despite cryptocurrency bulls are cheering the Bitcoin and other digital coins rally, the major volatility has returned to the red hot market as with that in mind investors should brace for price upheaval even if the currency rises. Therefore the young cryptocurrency space is still no place for a weak-stomached investor.