Institutional investors are showing increased interest in Bitcoin – Tom Lee
Bitcoin-bull, Thomas Lee, head of research at Fund Global Advisors, joined the world’s dominant cryptocurrency predicts another good year.
While Lee is the unpredictability of the Bitcoin projections carried away and his year-end price target for Bitcoin until the end of 2019, the Analyst believes that the king of the crypto currencies, Bitcoin, is on the way to a major Comeback.
Lee describes in a new CNBC Money Show (freely translated):
2020 should be the same for Bitcoin great, because, number one, which happens to halving the block rewards to halve the miners. This is a big change of supply and demand. I think, in the past year, the White house has completed the Bitcoin rally, with their Opposition, but with the current presidential elections, it is not in the headlines.
He continues to say (freely translated):
The is Bitcoin a bull market. And then, with the geopolitical tensions in the Middle East, which is good for the crypto technology. Thus, there is a lot of back wind. We also get from our customers a lot more interest in it.
In October 2019, Lee said that it won’t be long until Bitcoin recovers completely and his all-time high of nearly $ 20,000 is reached.
There are not many assets that have survived the loss of value of under 90%, but Bitcoin has always survived again.
Important is also the in may upcoming Bitcoin is supposed to be Halving. The industry experts are divided over whether Bitcoin can benefit from it or show no appreciable impact on the price.
The first Bitcoin Halving took place on may 28. November 2012. To this day, the first 210,000 blocks were created so that the Code was triggered, which reduced the block reward from 50 BTC to 25 BTC. This meant that for the next 210,000 blocks, which were created, only 5.25 million BTC will be generated.
The halving of Bitcoin was carried out again at 9. July 2016, when the block height of the Bitcoin block chain reached 420.000 blocks. The block reward was reduced from 25 BTC to 12.5 BTC. Between 2016 and 2020 are expected to be created 2,625 million BTC.
What can we expect from the Bitcoin Halving?
If the block height of the BTC reached 630.000, will decrease the block reward, then 12.5 BTC, 6.25 BTC. Until then, 18.375.000 BTC are already in circulation, from the maximum of 21 million. Between 2020 and 2024 (the next expected Bitcoin-half of the year), however, created only 1.312.500 BTC.
On the most basic level, the halving of Bitcoin relates to the miners, and their reward is reduced by half. It will approximately require the same amount of effort to earn 50% less than it was before the halving. However, there are other factors that are in the game, such as the scarcity of Bitcoin and the underlying effect on the value of the Kryptos, the market forces that affect the price of Bitcoin, and various other external events.
Many people in the crypto Community believe that the halving of Bitcoin can cause a significant upswing in Bitcoin prices. You quoted earlier price booms, the found a year after the halving instead, such as the one-year increase in the BTC-value of 11 to $ 1,100 after the first halving, or the record of the growth of the second half of 600 to 20,000 dollars within 18 months.
Other people have said, however, that the halving of Bitcoin in the year 2020 with the previous Reductions compared can be due to several factors, such as the increasing market maturity and the better half of the expectation in the crypto-community as well as the possibility that the impact of the halving in the current BTC-rates priced in are.
Whatever the future for the BTC-value, the people, the halving of Bitcoin can be seen as a turning point.
Featured Image: Wit Olszweski | Shutterstock
