Bitcoin is actually a serious technology. We need to use serious data and facts to judge.We know that Bitcoin has just completed the third halving in history.
What is halving?
Bitcoin is not mining more and more. At the beginning of the design, a halving mechanism was designed, which can control all the final Bitcoin output is limited. In this way, there will be no inflation problem, and there will be no similar Physical currency is the kind of situation in which the crazy coin printing machine causes the value of currency to fall.
In the first halving in 2012, the mining reward of the same cost was changed from 50 bitcoins to 25 bitcoins, and the price increased by nearly 8200% in one year. This is easy to understand. If the output at the same cost becomes less, the value must be higher. This is a basic economic principle.
The second Bitcoin halving occurred on July 9, 2016. In mid-December 2017, the price of Bitcoin reached a peak of US$20074, an increase of nearly 3000%.
These two halvings have pushed the price of Bitcoin to an order of magnitude. Then it will go through a stable period of about half a year and reach stable income.
According to Forbes’ report, the top leaders on Wall Street are all watching this halving. It can be said that this halving is the best opportunity in Bitcoin history.
Why is the third halving the most critical?
Because the halving is a non-linear decline. The first halving, 50 reduced to 25, the absolute value change is the largest, this halving has established Bitcoin’s position as a financial investment tool, but luckily it happened in the early stage, otherwise such a huge change may affect the market The impact is too big and causes liquidity problems. The second change, halved from 25 to 12.5, there are still more than 10 changes. This is also a huge shock. As a financial investment tool, although the huge change also brings the possibility of getting rich, at the same time, the risk is also Far exceeded expectations.
Only the third halving, from 12.5 halving to 6.25, compared with the subsequent halving, there are enough changes to bring different vitality to the market, but also did not cause much impact.
According to an internal calculation of Digital Currency Academy, this halving should be able to achieve a peak of at least 2000%. This is similar to the expectations of Wall Street bigwigs billionaire Bitcoin bulls Tim Draper believes that the price of Bitcoin may rise to $250,000. Preston Pysh, the founder of Buffett’s Books, believes that after Bitcoin’s halving, Bitcoin may soar to $300,000.
The price may not be capped?
To tell you clearly, that Bitcoin might reach a sky-high price of $333 million. With the advent of the third halving, the shutdown time of the mining machine will be greatly increased. Because the fixed cost of mining remains the same, but the output is halved. In the past, when the fixed cost was much smaller than the output, the shutdown time was not much. However, the third halving of the qualitative change caused by the quantitative change was fixed. The marginal effects of cost and output began to show, which directly led to a sharp drop in supply on the market. On the one hand, the supply is declining, and on the other is more capital inflows. The expansion of CME Bitcoin futures has directly led to a large amount of funds nowhere to be released: enough money, not enough goods!
The conclusion is to start with hundreds of thousands, or US dollars?
It is very likely that the final value of Bitcoin, based on the current growth trend, should be conservatively estimated to be constant at around US$150,000 to US$300,000. Converging to a constant value is also the original intention of Bitcoin. When Bitcoin all over the world appeared, as a constant-value currency to replace the national central bank currency backed by national credit, it was impossible and there would not be a lot of volatility. The current volatility is mainly due to the growth of Bitcoin In the process, it is gradually called the mainstream financial tool.