How Covid-19 is Writing the Script In Favour of Bitcoin Halving
Arguably, there is nothing in modern history that has shaken the world like the outbreak of Covid-19. From its little beginnings in the Chinese city of Wuhan, Covid-19 has transmogrified into a monster, shutting down the economy of hundreds of countries across the globe. Really, this is a difficult time for the world. The world is not only losing money; we are also losing thousands of people to the fang of death.
With the vaccine of Covid-19 yet to be discovered, it became imperative for governments to order lockdowns and stay-at-homes to prevent the spread of the highly infectious virus. The assumption is that we can only stop the virus from moving when we are ourselves not moving.
For those in the cryptosphere, Covid-19 is a party spoiler for two major reasons. First, a lockdown of the economy means less inflow of money into the crypto market. Second, Covid-19 is stealing the show in the media, reducing some of the attention that would have been given to the forthcoming Bitcoin halving.
And the observations above are not farfetched, not farfetched because Covid-19 has had disastrous consequences on the major money markets across the globe. Even the crypto market was not spared. We saw Bitcoin plummeting by about 50% in just 24 hours before it picked up some momentum.
Interestingly, for the reasons that would be explored afterwards, it seems that Covid-19 is on the verge of writing the scripts in favour of Bitcoin and the forthcoming halving event in May. To begin with, Europe and America are presently being ravaged by the coronavirus to the extent most parts are on total lockdown. Recently, President Donald Trump announced that the lockdown will be extended to the end of April. If the situation still doesn't improve, Trump could extend for two more weeks. In whatever case, the American economy will most likely kick start in May.
The same thing can be said of many European countries that are discovering declining cases of Covid-19 as the day goes by. So, by the end of May, all things being equal, the world economy should be up and running again. Somehow, it appears that Covid-19 is setting up the resumption of the economy to coincide with Bitcoin halving.
If both event unfold as predicted, there will be no Bitcoin halving that has the quickest positive impact on price as the one taking place next month.
Furthermore, there seems to be a recent event that was taken for granted in the cryptosphere. It was the panic that came at the peak of the outbreak of the coronavirus. That panic only succeeded in sinking Bitcoin and most other cryptos by 50%.
One would have thought that Bitcoin would be $1,000 by now but that didn't even get close to happening. So, that gives the confidence that Bitcoin has reached a solid bottom. With the Bitcoin halving just a few weeks away, investors can't be more confident about the safety of their investment.
Lastly, life is returning to the Chinese economy again. The country is now opened for business and manufacturing and even its league will resume by the 18th of April 2020. With everything going back to full gear in China and in other parts of the world, the use of Bitcoin as a medium for cross border payment will gain some momentum again. And if that momentum coincides with the Bitcoin halving next month, or at least happen closely enough, the question will not be whether the price of Bitcoin will go up. Rather, the question will be, to what degree?
Except otherwise stated, all images are sourced from Pixabay
