The Bitcoin halving is expected to happen around 18th May 2020. Many have come to the foregone conclusion that Bitcoin is a dud. They seem to forget that several factors are working for Bitcoin at this time (COVID-19) not against it.
We are at a time when centralization is falling apart. Financial markets have gone south as everyone who is working is doing so remotely and there is still more to end in sight as regards COVID-19 and many think that Bitcoin will also end up getting battered like other assets.
Bitcoin prices have currently rebounded from the doldrums. The financial markets are still tanking despite $2 Trillion in stimulus in America alone. Around the world, billions of dollars are being spent by governments to revive the markets while a solution is being found for the COVID-19 pandemic.
By the time one is found, the world would have experienced either an extreme recession or an outright despondency. Bitcoin prices meanwhile will double due to several reasons.
Firstly, the stay-at-home restrictions are making people look into the wonderful world of cryptocurrencies. Many of these people are going to wonder what the fuss about digital currencies was about. They will hop on the cryptocurrency train. These new guys will bring new life into the crypto space. It is happening already and Bitcoin is the first place they’d make a stop at.
Secondly, Bitcoin prices have already improved. Why the naysayers and skeptics still believe that COVID-19 will affect the crypto space negatively is still a mystery to many true cryptocurrency adherents.
It is now obvious that cryptocurrency prices are uncorrelated with other assets. This will give people the confidence to check the crypto space out as more adoption is already on the way.
More people will realize that dealing with cryptocurrencies is easier than traditional banking (which is already in crisis). They will join the train. Halving will only increase their excitement about the crypto space.
Investors are looking for a haven to park their funds. Bitcoin and altcoins offer great alternatives. The halving event is a great PR opportunity for Bitcoin anyway.
Until we all understand the true place of cryptocurrencies, we won’t know how they can be used to enhance our lives. For now, we are sure that Bitcoin prices will still go up regardless of COVID-19.