The Bitcoin price is known to be extremely volatile over the short term, but the past couple of months have been a particularly wild ride for the crypto asset. After hitting a 2020 high of over $10,000 in the middle of February, the Bitcoin price was lower than $5,000 a month later. Since then, the price of the world’s most popular cryptocurrency has recovered somewhat to around $7,300.
These extreme fluctuations in the price have many speculators wondering what will happen with Bitcoin next, especially in the context of massive, debt-based government expenditures in response to the Coronavirus pandemic. Former Facebook executive Chamath Palihapitiya recently stated that there’s now a five or ten percent chance that Bitcoin will be worth millions of dollars one day. Earlier this year, Tesla TSLA CEO Elon Musk noted that he’s not convinced the cryptocurrency could become a major database for money around the world. Additionally, billionaire investor and Bridgewater Associates founder Ray Dalio believes investors will turn to gold rather than Bitcoin during a potential crisis in the world’s major fiat currencies.
This excitement around the price of Bitcoin may only increase over the next 34 days, as the third halving event in Bitcoin’s history approaches. For those who don’t know, a halving in Bitcoin is when the number of new Bitcoin created roughly every ten minutes is cut in half. This change in the Bitcoin issuance rate is scheduled to take place every 210,000 blocks (around four years).
Recently, Blockware Solutions CEO Matt D’Souza discussed the implications of the upcoming halving on an episode of The Stephan Livera Podcast. Blockware Solutions recently put out a full report on...