Bitcoin

What drives Bitcoin the most?

The halving and performance of central banks have made cryptocurrencies a more sought-after asset by retail investors and institutions. In addition, the price of Bitcoin and other cryptocurrencies has always risen in the months after halving. From Spain, 2gether shared an analysis on these topics with Cointelegraph in Spanish on May 11th.

“”A new edition of the Bitcoin halving will be released tomorrow. This event, which takes place about every four years (every time 210,000 blocks are mined), takes place at a time when the FIAT world is doing the opposite. To combat the Covid 19 crisis, central banks are printing more money in the short term to support the economy. Halving will pull currencies out of the system, making bitcoins much scarcer. “Diagnosing what is happening.

“In the past few weeks, Bitcoin has seen an upward trend and growth of 30%. In the past, Bitcoin and all other cryptocurrencies saw an increase in all halves in the following months. Definitely The crypto ecosystem in general is experiencing an increase in new customers, new volumes, new businesses and, of course, increased demand“They added later.

What drives Bitcoin the most?
What drives Bitcoin the most?

On the other hand, they claimed that, apart from Bitcoin’s progress in previous halving, led by crypto users, this time around, many institutions are analyzing Bitcoin and other cryptocurrencies due to the possible devaluation of fiat currencies, especially when taking into account that it is over-indebted countries there and that there is a certain risk of default. “This highlights one of the key strengths of cryptocurrencies: decentralization, the fact that there is no central authority to control them, which will lead to a new way of creating an economy,” said 2gether.

The important thing about Bitcoin and the crypto economy in general is not only the price, but also the underlying trend, the basics of this new form of money that will lead to a new financial system. 2geher pointed out that it is likely that after halving the value of Bitcoin, what is known as “buying a rumor, actually selling” will decrease a bit.

“”There was volatility in the reference cryptocurrency during these months. During Black Thursday (March 12), cryptocurrencies suffered the largest decline in their financial history in the wake of the Covid-19 health crisis, which caused the collapse of the markets and even assets. In the past two months, cryptocurrencies, especially Bitcoin, have regained their role as a safe haven, “they noted.

According to this company, the economic crisis will only be solved in the short term with a liquidity injection and is exactly the opposite of what will happen in the crypto economy with a halving.

Salvador Casquero, President and co-founder of 2gether, said:

“It is the law of supply and demand. In the traditional system, there will be more supply than demand, so currencies will tend to depreciate in the medium and long term. There will be little supply in the new ecosystem, which will increase the demand and value of cryptocurrencies. “

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