Bitcoin will be halved next year, will it usher in a new round of rise?
Recently, the U.S. stock market Dow Jones Index fell 1,200 points in three days, the Nasdaq Index and the S&P 500 Index also fell sharply, European and Asia-Pacific stock markets also fell sharply, and gold, which is a safe-haven investment product, ushered in a rise.
Bitcoin, on the other hand, has not been affected by the stock market, and has been around $8,000 these days.
Although Bitcoin is not yet considered a stable safe-haven asset, it can be used as a safe-haven tool. We have always compared Bitcoin to gold, and Bitcoin has been called "network gold."
The current high volatility of bitcoin prices cannot be called a conventional stable safe-haven asset. As more and more market participants, the volatility of bitcoin prices will gradually decrease. For an early asset, such price fluctuations are inevitable, and it is also the process of price discovery.
In the future, there is a high probability that Bitcoin will replace the value of gold and further become a high-quality safe-haven asset. Especially in the context of the current global economic downturn, the hedging function of Bitcoin will be further amplified.
Recently, many readers have asked me whether it is suitable for bitcoin to enter the market now. If your investment cycle is short-term, and you will sell it in a month or two, I cannot give advice. If your investment cycle is more than one year, the current price is very suitable for building positions in batches.
In fact, sometimes we are struggling with the loss of short-term accounts. For example, Bitcoin is now at 8,000 US dollars. We are worried about buying it now, but we are also worried that it will fall to 7,000 US dollars. Yes, if the investment time period is extended to more than one year, and the strategy of fixed investment in batches is added, these problems and anxieties will disappear.
May next year will be the halving time of Bitcoin. The price of Bitcoin during the last halving cycle in 2016, I remember, was around RMB 5,000 in mid-2016, and rose to a peak of RMB 140,000 at the end of 2017, nearly 30 times increase. How much it can rise this time is uncertain, but don’t expect it to rise dozens of times, because the current market size is different from the past, but what is certain is that it will definitely rise. So I know it will go up, so don't worry too much even if there is a loss in the account now.
Yesterday I read Jared’s analysis of the future potential of Bitcoin in Bloomberg’s article. In the 20-year history of Internet development, about 99% of Internet companies have gone bankrupt, and only a few companies have reached a trillion-dollar market value. Paved the way for a "true bull market".
The cryptocurrency market will face the same fate, and Bitcoin is likely to be one of the few in the future. If only 0.5% of the global population uses Bitcoin in the future, although the total number is 21 million, the actual available amount is 16-17 million, because there are still 3-4 million lost, as the usage rate is getting higher and higher , Its price will also increase, and it is far more than the current price.
