Gold Beware as Bitcoin Halving Is Just 90 Days Away

Updated on Feb 10, 2020 at 10:08 pm UTC by Jeff Fawkes · 4 min read
Gold Beware as Bitcoin Halving Is Just 90 Days Away
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Bitcoin halving, gold and scarcity: as the milestone approaches, it will reduce Bitcoin’s block reward to 6,25 BTC per the block. Currently, the Bitcoin block reward equals 12,5 BTC.

In approximately 91 days, the picture of what is happening inside mining companies will start changing. The date for changes is 7 May 2020. There’s several ways to count the days until Bitcoin halving, however. When calculating the date using average daily block time, the next halving date shifts to 86 days from now. You can use both methods via links above, but the last one is presumably better. The network is tied to the block time, not to the real GMT time or any other zone.

Miners will have to find 165,912 BTC till May. Per each block, they will get approximately $127,331, and they need to roll out 13,273 blocks till the halving. Some miners sell bitcoin as soon as they collect one or two bitcoins. Other miners bet on the future rise up and hold the coins for months, sometimes – years. 

The industry’s big companies are using expensive hardware to mine bitcoins. They make contracts with the governments, pay taxes and mine legally in some famous countries. They pay rent as if they are an IT studio. Add here some cash for the farm space, as well as for electricity, guards, food, and equipment. Since May 2020, miners will start receiving less cash for their work. They will have to either sell large amounts of bitcoin to upgrade or cut costs.

Bitcoin Halving, Gold and Scarcity

During the previous halvings, Bitcoin was rising at least two-fold. According to the stats, Bitcoin’s average 6 months price before the 2016 halving was $448. In 6 months after the halving, Bitcoin was worth $901, which is a 100% profit, including a hefty of trading opportunities you can take during the volatility.

More than that, 6 months before the 2012 halving, Bitcoin’s price was $5,13. However, 6 months after it, the price was $126, which means a 25x increase in profit. This represents volatility-related set of possibilities, where attentive traders can earn even more cash. Many of the people don’t buy bitcoins, but they are aware of them. As soon as the field will receive all necessary regulations, many inexperienced investors will flow in too. Cryptocurrency price is rushing up and down, attracting risky capitals even during the ‘Wild West’ days. For example, the recent blog post and the tweet campaign by the Coinbase company opened the talking with positive notes.

Coinbase, Weiss Ratings Admire BTC as Digital Gold

Coinbase is one of the most famous companies in the U.S. when it comes to redirecting newbies. If someone wants to try crypto trading, Coinbase earned the authority to constantly receive good feedback. Even despite the 2018 bear markets, Coinbase managed to attract people across the world via their activity. 

The CB staff think that the reduction of Bitcoin’s block reward will impact the price. Their workers have an alliance with Ripple. Now, both companies send advice to the U.S. regulators regarding possible ways of using crypto to make the U.S. a wealthier nation.

Back in 1971, the gold standard was broken in the U.S. Since then, gold has gained more than 4000% in value if we talk about it counting the devaluation of the dollar’s price. Gold is scarce and difficult to acquire, that’s where it takes its price from. Also, gold is used in computer parts, jewelry, banking, science, and religion. Gold wins thanks to its properties and historical role. The gold market reacts similarly to the Bitcoin market on many of things in politics and economics.

Similarly to Coinbase, the Weiss rating agency gave Bitcoin Excellent mark (A-). They think that, after the halving, people will start value bitcoin more. Because people usually value scarce things. Also, they noted a ‘positive price action’ and Bitcoin’s overall technical progress. Interestingly, Weiss gave Ripple’s XRP token B- rating, and EOS receive C. The EOS blockchain works on DPoS, which means there is no mining on the blockchain and the coins are in distribution among users and developers. EOS is the largest PoS coin in history by the value currently locked in staking.

Bitcoin News, Blockchain, Commodities & Futures, Cryptocurrency news, Editor's Choice
Jeff Fawkes
Author: Jeff Fawkes

Jeff Fawkes is a seasoned investment professional and a crypto analyst. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.

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