The Bitcoin Halving is Complete – What’s Next?br>
The Bitcoin halving event created enormous buzz, excitement and opportunity for the market. Prices went on a rollercoaster ride and hash rates are at all-time highs for an event that happens every 4 years. The block reward reduced from 12.5 BTC to just 6.25 BTC for every block mined every ten minutes, which increases scarcity while driving demand. Ultimately, this is the formula to drive up prices.
Aside from the “priced in” hot debate going on, perhaps a more important question is where do we go from here? As history repeats, Bitcoin prices will surely increase over time, and we will have more adoption of Bitcoin holders than before.
In the midst of a pandemic, Bitcoin has also become more of a store-of-value and currency hedge. While this is great for mass adoption, Bitcoin is so much more. It can be denominated into fractions. It can be sent globally within 10 minutes without an intermediary. It is highly portable, secure and decentralized. These are traits of a global currency that transcends far beyond any asset or money.
Until the next halving in 4 more years, now is the time to embrace, utilize, spend Bitcoin. Easier said than done, as people have been reluctant to spend Bitcoin from fear of price volatility. They don’t want to buy coffee for $5 today knowing their spent Bitcoin is worth $20 dollars in the next year. This is a similar problem with traditional currencies, just with an amplified volatility. However, if we not only spend, but also receive Bitcoin for businesses or sales, this would naturally normalize the price to an acceptable medium value for exchange. Additionally, you can constantly buy back into the market as you spend your Bitcoin. All of which are behaviours to increase Bitcoin value and price.
Ultimately, making use of Bitcoin into a two-way commerce is the answer for mass adoption. If Bitcoin prices climb without use, this imposes a bubble effect risk and increased volatility. You likely have already bought your first Bitcoin, don’t be afraid to spend it and buy more.