Bitcoin Pumping Just Before the "Big Day"... Is It the Real Deal?
According to many crypto YouTubers and financial analysts alike, the next "Bitcoin Halvening" which is due in a few days time, could potentially be the catalyst for the next bull run. After all, half the amount of produced BTC shifts the balance between demand and supply once more, right? Well, here's my thoughts on this...
Whilst in theory, this will be phenomenally good news for us crypto HODLers out there, numerous other factors could introduce their own implications on price too. Governmental interjection being one. I mean, the total marketcap for crypto is still relatively small. Currently just shy of $260 billion, it's literally a drop in the ocean and wouldn't really be on any radar of the "powers-that-be" for now. But in the future, all that will presumably change. Imagine all that tantalizing tax just waiting to be scooped up and pocketed by the official authorities positioned throughout the world. For me, it's just a matter of time until they do just that and attempt to apply their restrictive rules and practices upon us. How much that would be and to what extent it would effect the growth of the crypto market as a whole is anyone's guess, but still, something to most definitely bear in mind.
Another thing that is indirectly related to the first point. Global adoption. Supply is the only one constant that we can easily quantify when it comes to calculating the amount of Bitcoin being created. One thing that is, to some extent, an unknown variable is the demand itself. Are we at a time in history where people are willing to accept and welcome this new technology? Securing one's own wallet and dealing with those mind-bogglingly enormous Bitcoin addresses may now be standard fare to us veterans in the space, but for a newbie, it's almost like a reinvention of the wheel. How society would react to potentially transacting on a daily basis with digital currency, is anyone's guess. Especially when we already have fiat in place and the overwhelming majority of the world have been using it without much issue so far. Sure, decentralization is important to us, but how relevant will it seem to your average Joe, the alternative being switching to crypto instead. Again, an unknown factor and one only time can ultimately reveal an answer to.
It's an interesting time we're all living in and lucky enough to be a part of in our lifetime. Witnessing these historic technological leaps before our very own eyes and watch as a brand new economic landscape unfolds. Sure, there is risk but also plenty of opportunity if things pan out in our favour. Who knows what the future might hold? One thing is for sure though. If you're not in it, then you're not "in" it. Nothing ventured, nothing gained.
Let's watch this space and find out! :)