The crypto sphere has seen a lot of buzz over the past few months with regards to the Bitcoin halving that is going to take place in May. Bitcoin is the biggest cryptocurrency in the world, and it is only natural that the upcoming halving event has caused such a stir in the crypto sphere at large.
Key Things to Watch
However, there is something else that needs to be considered at this point. The markets across the world have been sent into a tailspin due to the onset of the coronavirus pandemic, and it is worthwhile to consider whether this is going to affect the halving event.
A halving event literally cuts the rewards earned by miners when mining a coin by 50%, and over the years, such an event has proven to be a good thing for Bitcoin. In the past, Bitcoin’s price saw a spike following such a measure because halving often led to a rush of new investors into the cryptocurrency. However, this time, the situation could be different.
The coronavirus pandemic has unleashed economic miseries, with hundreds of thousands of people losing their jobs and having to take checks from the government. The turmoil could have an effect on the number of people who are actually willing to spend any money on buying cryptocurrencies after the Bitcoin halving.
Financial markets all over the world have been rocked by widespread sell-offs, and the United States Federal Reserve has had to announce a stimulus package worth trillions of dollars to try and stabilize the stock markets. As a matter of fact, there are widespread fears that the world is going to change forever due to the effect of this particular pandemic, and there is a feeling that cryptocurrencies might not even exist in the coming years. So it definitely seems likely that the current situation is going to have an effect on the Bitcoin halving event.
What do you think?
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Joseph Spezzano received a Masters Degree in computer science from The University of Massachusetts. Joseph has been working as a full-time blockchain programmer for the past 5 years. In his spare time, Joseph enjoys writing for CryptocurrencyInvestments.com and traveling.