The coronavirus pandemic has sent the cryptocurrency market reeling. This is also seen in traditional bags. It is a fact, the downtrend in the market is paving the way for what some specialists consider a large-scale economic crisis. But time has shown that the trend of cryptocurrencies has little or nothing to do with the rest of the markets . In fact, one server thinks that now is the best time to invest in Bitcoin or any other digital asset. The reasons I will go on to explain below.
The ultimate guide to understanding cryptocurrencies
Why investing in cryptocurrencies right now is a good idea
Since the middle of last week, the global cryptocurrency market has suffered a downward trend that has negatively affected the value of most assets. Bitcoin, Ethereum, Monero ... The most popular cryptocurrencies have reduced their value by around 25% and nothing seems to change this trend, at least in the coming weeks.
Bitcoin value in the last 7 days.
The reason for this is because a good part of investors are selling their assets to cure themselves of scares . Precisely because of the speculative value of this type of asset, the fall has been much greater than was originally expected. Despite this, there are a series of conditions that encourage us to think that the value of Bitcoin and the rest of the currencies will reappear positively in the coming months.
The most important reason has to do with what we currently know as Bitcoin Halving . It is a process by which a redistribution of the compensation assigned to all those entities or users that is dedicated to mining Bitcoin and solving blockchains is carried out .
Appearance of an ASIC, a device intended to mine cryptocurrencies more efficiently than a conventional graphics card.
This process is carried out periodically and its objective is to divide the aforementioned compensation in two. The current average is 12.5 BTC. After the celebration of the next Bitcoin Halving on May 23, it will be divided in half, that is, about 6.25 BTC .
Historically, it has been shown that the value of Bitcoin has multiplied by several figures after the resignation of values. In other words, investing in mining Bitcoin will become less and less profitable , which positively affects its market value. Some experts even say that the value will exceed 19,000 euros between the middle and the end of this . Currently the value is 5,436, which would represent an increase of almost 400%.
To this fact must be added the celebration of the Presidential Elections in the United States. Since Donald Trump declared war on cryptocurrencies, the value has been fluctuating in relatively regular values. The entry into the Government of a new political party could mean a new upturn in the value of Bitcoin and the rest of cryptocurrencies, as well as the acceptance of their use among the general public.
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
- Donald J. Trump (@realDonaldTrump) July 12, 2019
Proof of this is the presence of personalities such as Andrew Yang and John McAfee, the creator of the famous antivirus for Windows, to two of the most popular American parties today, the Democratic Party and the Libertarian Party. Both have demonstrated their support for cryptocurrencies and digital operations in general on countless occasions .