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Crypto is Going to Rise: Best Time to Invest?

While the “conventional” world economy struggles to survive taking hits from every possible side, cryptocurrencies seem to have calmed down quickly after a slight shake earlier this year, and are starting to gain momentum. While the prices of the main cryptos steadily crawl up, there are some rather important events that are awaiting us in the nearest future. First of them is in the bitcoin realm - halving. invest in Crypto

Halving of Bitcoin

Halving is a 50% reduction in the reward for mining new blocks in the Bitcoin network. It occurs every four years (more precisely, 210,000 blocks). Such a sharp reduction in the influx of new coins into circulation has a strong impact on the market.
The maximum emission of cryptocurrency Bitcoin is 21 million BTC. The creation of coins is carried out strictly according to a specific plan laid down by the creator of the project, Satoshi Nakamoto. In this plan, a gradual decrease in the reward for the generated transaction block is prescribed. Every 210,000 blocks (approximately 4 years) there is a halving of remuneration, and this event always affects the price of cryptocurrency and the income of miners. In 2020, this event will occur on the 630000 block.
After the Bitcoin-halving in May 2020, the reward for miners will decrease from 12.5 to 6.25 BTC.
The division of the reward has three important positive effects on the network:
  1. Extending the life of the reward system.
  2. Creating a deficit, as a result of which the value of the coin grows. The less BTC mined over a period of time, the more expensive they are valued.
  3. Halving doubles the cost of mining each specific bitcoin. The higher the complexity of the network and the lower the reward, the more expensive mining becomes. And, as a result, coins.

What will happen to the Bitcoin exchange rate after halving?

If you look at the historical data:
  • After the first halving in 2012, the rate increased from $ 11 to $ 1,100, that is 10,000%.
  • After the second halving in 2016, there was an increased level of interest in the coin, and the rate rose from $ 570 to $ 650. And later, in 2017, it increased to $ 2,500, by almost 440%.
It is impossible to draw conclusions only on the basis of history, but assumptions are possible. Therefore, most investors and traders expect Bitcoin to grow after the 2020 halving
The process of halving brings more benefits to the crypto community than harm. Bitcoin halving is a kind of guarantee of the absence of inflation, profitable investments and the long life of the cryptocurrency. At the same time, halving is considered one of the key factors determining the increase in prices for BTC in the market. However, for all miners, each decrease in the reward is stress, because in order to maintain income at the same level, new investments in technology are necessary.                      Invest in Crypto Right Now 
The halving of bitcoin, which will be soon, does not bear catastrophic risks for the majority ordinary investors. The BTC rate should grow, however this will happen not instantly, but in stages, as it was in previous times. Those who do not mine, but only keep Bitcoin as a long-term investment, will not be affected at all. The only possible drawback is an increase in commission fees. All this is an integral part of the crypto economics, and users cannot change anything here.
While the oldest cryptocurrency, Bitcoin, is awaiting halving, Ethereum also expects a series of changes and updates. They can significantly change the value of the second most popular e-currency.

Prerequisites for the growth of Ethereum in 2020

To begin with, it is worth noting that Ethereum technology is very similar to Bitcoin and differs only in some details. For example, the transaction speed of this cryptocurrency is lower. This difference led to a complete halt of all transactions as a result of the massive use of the CryptoKitties application in 2017.
Based on this, the Ethereum forecast for 2020 is highly dependent on an increase in transaction speed. The team of programmers who deal with this problem promise a speedy solution to the issue, however, they do not provide specific deadlines.
Of the other reasons that can lead to an increase in the value of this coin, it is worth noting:
  • Speculative risks. In the e-money market, a powerful pool of large owners of crypto-wallets has formed. Their combined actions can cause a sharp increase in the price of Ethereum.
  • Worldwide recognition of cryptocurrencies. If in 2020 some countries recognize crypto as legit payment methods, then this will affect their popularity and cost.
  • Improving transaction reliability. This action will also lead to a massive demand for cryptocurrency and an increase in its price.
Separately, it is worth considering the upcoming appearance of Ethereum 2.0.
One of the reasons why you should buy Ethereum now and make money very soon is that the next update of this cryptocurrency is approaching, which, according to forecasts, will lead to a sharp increase in value.
The three previous stages of Ethereum development, which took place in the period of 2015-2017, should continue in 2020 with the last stage, which should complete the evolution of cryptocurrency and affect the forecast of the Ethereum exchange rate for this year. As a result of the update, the coin will finally significantly reduce energy consumption and increase the speed of transfers.
An important change will be the transition to sharding transfers, which consists in scaling the Ethereum network. With such transfer, the blocks are divided into a set of transactions that are processed separately, which significantly speeds up all actions and increases the throughput of the entire system.
In general, 2020 can bring a sharp increase in the value of this cryptocurrency, however, this will happen only if the developers fulfill their promises and have a successful global environment.

Invest in crypto right now!

It seems that both Bitcoin and Ethereum have only started their path to really sweet exchange rates. And while we have some time before all these changes will happen, it is high time to stock up with crypto. Either you are just considering buying your first crypto asset, or you already made your deposits, today could easily be the day everything will start to change. Or tomorrow. But it will happen nonetheless.

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