Explosive Crypto currencies that can be Purchased After Halvening of Bitcoin
Cryptocurrencies can always continue to earn better gains in this year and so the altcoins that we have actually been leading the rally. CCC:BTC is the third big Bitcoin which has been noted to halve recently. This portfolio is the same has noted the jaw dropping from 40% of the gain in 2020 against the market whose flat year till date. That surely is one big reason to become bullish on cryptocureuncies in the year 2020. However, before we even understand what exactly the having refers to, it is important to understand the reason behind cryptocurrencies being a broad asset class with a better future.
Know the purpose:
The primary aim of cryptocurrencies is quite simple. The focus is to leverage the technology that can help in eliminating the layman in the transactions done at the financial level and thus buy and sell things at cheaper value and with efficiency. With the help of blockchain which is more like decentralized ledge of public transactions which any one can see cannot be edited, it is the best option that cryptocurrencies can use for financial transactions verification. However the only problem that comes is the traditional currencies require some huge banks to oversee and make sure all the transactions are verified. When it comes to crypto currencies it does not.
The reasons of having being Bullish
There are some reasons which convinces on why the price to cryptocurrencies will keep increasing. Basically bitcoin comes with two characteristics which are supply growth and the limited supply too. There are certain bitcoin numbers across the world. The world of bitcoin even began with the bitcoins that were already lcoked in the system. Every time the individual would update the ledger of the bictoin, the individuals shall unlock the new bitcoins. However, to constrain the supply growth for mining, the system of the bitcoin is set up in such a way that new bitcoin value can be unlocked for mining a block which is halved.
Till now, bitcoin has gone through three halving:
· The first halving occurred in the year 2012. During this span, the price of the bitcoin increase to 8,000%.
· The next halving occurred in 2016 when the price of the bitcoin increase to 2000% for which it took 18 months.
· In both the cases, there are lanervatibe cryptocurrencies that actually increased far better than bitcoin.
· The having of bitcoin happened third time in the year 2020 where the bitcoin certain number unlocked for mining one block which fell from 12.5 bitcoins to 6.25.
In short, if the demand growth is bigger and the supply growth is lower then it is equivalent to the price of cryptocurrencies.
CBW - External Analyst