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Bitcoin: 3 main differences between this halving and previous ones

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Bitcoin: 3 main differences between this halving and previous ones

Bitcoin: 3 main differences between this halving and previous ones
CONTENT

  • BTC trading volumes increased by 2,800% compared to the previous halving.

  • The number of exchange accounts has grown significantly compared to 2016.

  • A global economic recession could rob investors of the returns they hoped for.

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The third halving: Bitcoin halving cuts the number of new coins created and earned by miners in half. This happens approximately every four years and … More will be significantly different from the previous two episodes of reward reduction for new blocks mined in the Bitcoin network.

Bitcoin: 3 main differences between this halving and previous ones

The crypto market almost waited for halving on the bitcoin network. It will happen in a matter of hours. However, this time the overall picture is fundamentally different from the two previous halvings due to a number of unprecedented accompanying factors..

In anticipation of the halving, the crypto community began to intensively adjust market positions on Sunday, which provoked a collapse of the bitcoin rate by almost $ 2,000 within one day. However, this was preceded by a very impressive growth in MTC – the currency managed to double its value after the collapse in mid-March.

So, what are the key features of the third halving??

High trading volumes

The volume of bitcoins that are traded and exchanged on exchanges in 2020 is more than 2800% higher than in 2016. This was pointed out recently on Twitter by entrepreneur and crypto enthusiast The Crypto Lark [@TheCryptoLark].

“This Bitcoin halving will be very different! In 2016, the trading volumes of MTC amounted to 1.7 billion, and now it is about 50 billion! “

This strong growth is a testament to the fact that over the past four years, Bitcoin has tirelessly worked its way towards mass adoption and acceptance. Pricing is a less reliable criterion, however, in mid-2016, before the halving, 1 BTC was worth about $ 650. Now, at levels in the region of $ 8,700 (at the time of writing), the exchange rate has increased relative to 2016 by 1240%.

Bitcoin: 3 main differences between this halving and previous ones

Moreover, according to the popular stock-to-flow model, after halving, bitcoin can set off to renew new historical highs..

Number of accounts

In addition to the growth in trading volumes, there is also an increase in another indicator in the Bitcoin network. This is the number of cryptocurrency users. In particular, this is indicated by the number of exchange accounts, writes Crypto Lark.

“At the time of the last halving, Coinbase had 3 million registered users. Now there are more than 30 million of them … and this is only one exchange! “

During the last bitcoin halving, Coinbase was one of the few exchanges in the crypto industry. Now their number is huge..

Both of the above parameters are favorable indicators confirming the high activity in the bitcoin ecosystem and the general growth of the BTC network itself..

Economic recession

However, not all factors are so positive. Unfortunately, this year the world economy unexpectedly found itself in a difficult situation due to the coronavirus pandemic..

After the global financial crisis of 2008, which gave impetus to the creation of bitcoin, the US economy and the global economy as a whole experienced a period of steady and prolonged growth. However, the outbreak of COVID-19 has put an end to this prosperity, provoking a monstrous rise in unemployment and tough quarantine measures around the world..

Bitcoin: 3 main differences between this halving and previous ones

Thus, the third halving will take place in completely new and unexplored conditions for bitcoin. At the moment, it is difficult to predict how the current economic crisis will affect capital flows and investment in cryptocurrencies. Perhaps all the high hopes pinned on Bitcoin’s post-halving growth will not materialize until the global economy recovers from the blow and bounces back..

Do you hope that halving will be a profitable event for investors? Share your opinion in the comments!

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