Recently, the price of Bitcoin has fluctuated around $10,000. In the early morning of August 29th, Beijing time, Bitcoin fell below 10,000 yuan again. The decline in other currencies was terrible. In particular, Ethereum and EOS, which are represented by the public chain, have fallen back to the level of bear market in 2018. The overall market for competitive currencies is not optimistic. By the 2020, bitcoin will be halved and supported. The entire cryptocurrency market can only sustain the bull market by half the bitcoin?
As early as 2008, in the context of the financial crisis, Nakamoto became a bitcoin system for anti-inflation, with a total limit of 21 million. These 21 million bitcoins are not issued out of thin air, but as rewards (issuance) to those who contribute to the Bitcoin network, that is, miners, or miners have completed the issuance.
In the Bitcoin system, the issuance rule is to produce a certain amount every 10 minutes, and at the very beginning, 50 bitcoins are issued every 10 minutes. However, in order to prevent the bitcoin network security from happening suddenly after the release of Bitcoin, Nakamoto has set up a halving mechanism in the distribution to make the bitcoin network smoothly transition, that is, every 210,000 blocks are halved, and now it has been halved twice. For every 10 minutes, 12.5 bitcoins will be produced. In May 2020, the third halving will be achieved. After halving, it will be 6.25 bitcoins every 10 minutes.
The halving breaks the condition of the dynamic balance of the previous supply of demand. According to the theory of supply and demand of price, the supply decreases and the demand does not change, which will lead to price increase. At the same time, we have also proved this logic based on the history of halving bitcoin. The price for the first year before the first halving was $2.55, and the price for the first half of the year was $1,037; the price for the second half of the previous year was $268, and the second year after the second half was 2525. Dollar.
Therefore, the halving of Bitcoin is crucial to the development of Bitcoin, at least in terms of price. Because Bitcoin takes up nearly 70% of the overall market value of the entire cryptocurrency market, its impact is enough to shake the entire encryption world, which makes the entire circle revelry.
However, in our view, there is no bull market outbreak in the market. The only Bakkt that was previously promoted was also finalized in August and will be officially launched on September 23. However, there is no big wave of bitcoin prices, which may have been expected to have been fully consumed in the past year.
Look at other currencies, mainly to carry the public chain pass of the hope of the currency circle, but also to fall into a liquidity trap, lack of liquidity, reversely affect the development progress, application landing, etc. in the price, into a state of chronic death. The public chain was silent, and in a short period of time, the idea of expanding the cryptocurrency market by applying the landing method was completely eliminated.
In fact, there is still an implied bearishness. We can see that in recent months, due to the arrival of the flood season (the cost of electricity is reduced), the computing power of Bitcoin's entire network has been abnormally increasing, hitting record highs. The wet season will end in September and enter the dry season in December. This means that the mining market with strong competitive pressure faces the cost increase. This situation will lead to some mining machinery and the decline of the bitcoin network. The reduction in the security model and the reaction to the currency price will put the bitcoin price under pressure.
To sum up: Bitcoin is expected to reduce the market's decline by halving expectations. It is still inconclusive as to whether the halved strength can withstand the negative impact. Fortunately, the market value of Bitcoin in the overall market is gradually expanding, which means halving the entire cryptocurrency. The influence of the market is gradually expanding. The ability to halve Bitcoin is expected to withstand all bearishness. The market outlook is still expected!
Source 丨莱道 blockchain (laidaoblockchain)