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How COVID-19 and the Halving Will Produce a New Era for Bitcoin

Photo by David McBee on Pexels

Bitcoin has already experienced the third halving on May 11, 2020, and the price has increased significantly since then. While many expect the price to increase like in previous halving iterations, the timing may be similar or different due to the changing circumstances concerning the global health issues as well as the need for a currency that can hold value over time similar to gold or silver.

While the halving will cause Bitcoin to increase over the next year as it has already attempted to reach the $10,000 level again, there may be other factors that may lead a breakout moment for Bitcoin. Silver and gold are equally gaining on the need for some commodity that holds value. While silver and gold are also increasing in value, Bitcoin can serve as a new method of storing value without the need to physically transport the value.

As Bitcoin increases, so will the altcoins as they also tend to follow closely. Coinbase has a great currency ranker that tells which altcoins are correlated to Bitcoin’s increases. While the true increase of Bitcoin’s value will probably be seen within the next year, as in previous halving iterations, there is much more to the current situation. Only 6.25 BTC are given as a reward for mining which has decreased from the previous amount of 12.50 BTC. There have been a total of more than a million BTC mined during the period of the third halving. The reward will decrease with each halving until the sixth halving with a reward of a little more than a Bitcoin.

As far as sanitation purposes go, money can have the potential of spreading bugs and viruses while Bitcoin also allows for the flow of currency without the need to physically exchange the value. Instead of worrying about disinfecting cash, cryptocurrencies are stored either on the phone or computer wallet or exchange. Sure you need to sanitize your phone or computer keyboard every once in a while. Other cryptocurrencies that will continue to increase along with Bitcoin may include Bitcoin Cash, Ethereum, Litecoin among others.

As of now with the third Bitcoin halving, the number of total Bitcoin’s mined is a total of 93.75%. Being a deflationary currency, the value of each Bitcoin is set to increase in value due to the scarce amount of Bitcoin’s relative to the amount of quantity of other currencies or methods of exchange.

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