Bitcoin Halving and Reaching an All-Time High Value in 2020

The coming days are starting to look very crucial for the cryptocurrency pioneer “Bitcoin”. The “halving” event is a crucial change in Bitcoin expected to show up in the next 2-3 months (probably around May). It will reduce the limit of coins that can be mined from one block by half. Instead of 12.5 coins, miners will only be able to extract 6.25 coins. What that basically means is the level of inflation that is currently present on BTC will go down by half.

The primary purpose of the halving mechanism, if it stays in the code over the coming years and decades, is to make sure the total bitcoin value of 21 million bitcoins is never crossed with mining. The event will keep on repeating itself to make Nakamoto’s fixation on keeping bitcoin scarce alive.

Developers and economists are sharing reservations about the viability of the halving mechanism. However, investors say that it would create a massive boost in the value of Bitcoin. This could also possibly create a FOMO situation among people investing in this cryptocurrency.

Cryptocurrency tycoons and owners of Gemini, the Winklevoss Twins also believe that the halving will create a highly positive impact on Bitcoin value and its market. In fact, they said that the event should have already happened, thereby changing values but it hasn’t. And when it eventually will, the result will be a major bull run (like always).

Being the first major event of its nature, it is certainly creating a lot of anxiety along with the hype. But for some people, it does not seem to be carrying any real value. People like the founder of Morgan Creek Digital Jason A. Williams and Bitmain Co-founder Jihan Wu think that the effect people are expecting to see from the halving may not come at all. The large bull market trend that everyone is rooting for might just be a dream according to them. They say it won’t actually happen once the halving event has occurred.

Celcius CEO Prediction

Alex Mashinsky, the CEO of crypto startup Celsius has shared a strong belief that the Bitcoin will hit an all-time high this year, ending with a possible value of $30,000. He is of a strong belief that people are not taking the magnitude as seriously as they should. With instability being the rule of the day, the idea of “store-of-value” is automatically creating the hype for cryptocurrency. This, Mashinsky believes, will bring out the bull effect of the halving sooner than people are expecting.

The general expectation is for Bitcoin to show an increase in its value within this year. This is also in line with what Mashinsky has predicted. However, a lot of pricing models are showing the real impact to start showing in 2021 and not this year.

This is where Mashinsky’s whole underestimation theory is coming from. He says that the uncertain global political scenario will also play a major role in increasing the value of Bitcoin. Referring to Bitcoin as “the doomsday insurance” in The Lending Machine Podcast, he also said that his initial estimate was $30,000 but it would be in the $20,000 – $30,000 value range. The bull trend of the crypto market will also ensure that this value is achieved, Mashinsky says.

Still Not Popular

Regardless of all that, there is still the big issue of user base not growing fast enough. Most people are still hesitant to enter the cryptocurrency market and there is a good reason for that. According to Alex Mashinsky, mass adoption will only happen if the problem at the base is addressed properly. What that means is that users are expecting a better user experience with a lot less volatility in the market. His formula for the solution dictates “less volatility, more utility”.

However, even with all these issues faced by the cryptocurrency market, Mashinksy seems to be positive about what the future holds for crypto. There are a lot of efforts from several major players to make more intuitive and user-friendly blockchain apps. The lack of user experience is the biggest factor keeping users at bay. Once that problem subsides, there is a high expectation that a massive increase in users will follow.

The most impactful efforts in this regard are those made by the Winklevoss Twins and the Libra Project by Facebook. If Libra can create a solid footing in the crypto market and wins the trust of users, it can be a major step forward in boosting the values of all cryptocurrencies currently in existence.

The crypto traders are sitting on their toes, waiting to see the impact of the halving on the value of Bitcoin. The thing is, if Bitcoin gets a boost, other cryptocurrencies will also get a boost, primarily because of increased trust in cryptocurrency. As for what actually ends up happening, we will have to wait and see.

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