Bitcoin halving highlights crypto is part of mainstream finance: deVere CEO

Bitcoin’s historic halving event on Monday underscores that the “long-term future of cryptocurrencies is secure”, says the CEO and founder of one of the world’s largest independent financial advisory organisations.

The comments from deVere Group’s Nigel Green come as the world’s supply of Bitcoin was forever slashed on Monday. The highly anticipated halving event, occurring only every four years, means that less and less Bitcoin – which is limited to 21 million units – will now been mined.

Monday’s was only the third ever halving. In 2012, the number of new Bitcoins issued every 10 minutes fell from 50 to 25. In 2016, it went down from 25 to 12.5. Now, in the 2020 halving, it will drop from 12.5 to 6.25.

The halving happened on block 630,000.

Nigel Green says: “The historic Bitcoin halving event has demonstrated in two ways that digital assets’ long-term future is secure.

“First, the price had been rising steadily ahead of the highly anticipated event – almost three-fold in the last three months – and then dropped back just before and after it took place.

“This shows that there has been increasing retail demand for Bitcoin as investors see and understand the growing influence and huge opportunities of digital currencies in an increasingly tech-driven world.

“With this in mind, large cryptocurrency investors, known as ‘whales’, accumulate crypto at much lower prices then start a sell-off to capitalise on this sustained growing demand.”

He continues: “Second, history teaches us that after this post-halving drop in price, there is a subsequent bull run. 

“Previous Bitcoin halving events have prompted impressive price climbs. The 2016 halving triggered a 300% jump in the value of Bitcoin. 

“There is no reason to believe this time the market will not respond with a longer-term upward trajectory.

“Indeed, the rally which is likely on its way could potentially be even more dramatic because there is more mass awareness than ever before of the long-term use of and need for digital currencies.”

The deVere CEO adds that in these unusual times, central banks have increased monetary supply and this will further drive prices of cryptocurrencies such as Bitcoin.

“Traditional currencies are devalued and inflation fears rise on the back of the mass printing of money, the likes of which we have recently seen in the U.S., where the nation’s central bank has added trillions of dollars to the money supply,” he says.

“Such measures will inevitably encourage even more investors to consider decentralised, non-sovereign digital currencies.”

Mr Green concludes: “Looking ahead beyond the halving event, cryptocurrencies are increasingly becoming regarded as the future of money due to the real-world issues they address and growing mass adoption.”

Bitcoin’s coming of age? May’s historic halving taking place in a new era

The Bitcoin price will hit ‘at least $10,000’ even before the four-yearly ‘halving’ event taking place in two weeks, predicts the CEO of one of the world’s largest independent financial advisory organisations. 

The prediction from the chief executive and founder of deVere Group, Nigel Green, comes as the price of the world’s largest cryptocurrency suddenly soared by more than $1,500 on Thursday, moving it to its highest value since February.  It peaked at $9,400.

It comes ahead of May’s highly anticipated halving event. Occurring every four years, halving means that less and less Bitcoin – which is limited to 21 million units – will be mined.

In 2012, the number of new Bitcoins issued every 10 minutes fell from 50 to 25. In 2016, it went down from 25 to 12.5. Now, in the 2020 halving, it will drop from 12.5 to 6.25.

Mr Green says: “We see the cryptocurrency market already significantly picking up pace ahead of the historic event in May.  

“Investors are now increasing their exposure to Bitcoin as the halving – only the third in its 11-year history – will push up prices sharply due to the dramatically lower supply combined with a steady demand and increasing awareness of digital currencies.”

Previous Bitcoin halving events have prompted impressive price climbs. The 2016 halving triggered a 300 per cent jump in the value of Bitcoin.  

But the 2020 one could be even more remarkable, believes the deVere CEO.

He notes: “May’s event could herald Bitcoin’s coming of age. 

“It will, of course, drive prices higher – but, in my opinion, the jump could be even more impactful due to these unprecedented times.

“The digitalisation of our lives is accelerating at a faster pace than ever before. We’re in an exciting new era driven by technology.

“This new world needs new ways of doing things to fit the new normal.  Clearly, one of those things which is needed now more than ever, as the world becomes ever-more digitalised and globalised, is digital and global currency, such as Bitcoin.

“This will not have gone unnoticed by investors who are increasingly piling into cryptocurrencies.”

Mr Green continues: “Also, these unusual times have forced central banks to increase monetary supply. By printing never-seen-before amounts of money, traditional currencies are devalued and inflation fears rise.

“This will also drive investors towards decentralised, non-sovereign digital currencies.”

Mr Green concludes: “The excitement of the forthcoming rare halving event, together with the new era we’re in, will drive the price of Bitcoin exponentially and sustainably.

“I believe we can expect it to hit at least $10,000 before the May event itself.  

“Beyond that, we could see an explosion in the price of Bitcoin due to real-world issues it addresses and increasing adoption.”

How do the professional cryptocurrency miners make a profit

Mining has become a very lucrative business. Due to the rising demand for cryptocurrency, thousands of people are trying to earn their living by mining it. In the past, mining Bitcoin was extensively popular. But things are getting much better. People are mining different types of crypto to compete with giant mining companies. Though you could have once made a decent amount of money as a solo miner, nowadays it has become way more difficult.

Does that mean, we the individual miners have no place? Well, it’s a bit of a tricky question as the answer is related to the actions of miners. If a person knows the ins and outs of the mining business, it can be a life-changing profession. Let’s learn some of the key steps which miners are using to make big profit from this market.

Return over investment

The professional miners have a clear knowledge of ROI which is often known as a return over investment. You don’t want to spend a huge amount of money setting up a personal mining rig without knowing the ROI. You have to consider mining as a business and only then will you be able to come up with a unique idea that will tell you how much money might get from per month. Once you know your monthly income from mining, it’s just basic math to find out how long it will take to cover the investment. In the past, the mining process was much easier but things are extremely difficult now. Unless you have a super-powerful mining rig, you should not expect to get a full return from your investment within a short time. So, consider the ROI factor whiling mining cryptocurrencies.

Selection of the digital asset

Selecting a digital asset is the most complicated task. It’s more like knowing what cryptocurrency to buy. Those who think Bitcoin mining is the only way to make money have a lot to learn about the crypto mining industry. People are mining Ethereum, Litecoin, Dash, etc. which is relatively easy. So, how do you find the best digital asset to mine?  Pro miners use the real-time market data from bigX and they find the cryptocurrencies which are most likely to go in up the near future. So, it’s obvious you can’t make a big profit by mining one specific set of the asset. Try to diversify your mining rigs so that it increases your win rate. It might be tough for new miners but they must educate themselves to become pros.

The cost associated with mining

Setting up the mining rig is not the only cost by which you can make a decent profit from this market. You have to know about the associated cost in mining. In most cases, electricity consumption becomes the killers. But the professional miners use alternative solar power to mitigate the mining cost. Setting up a solar power hub for the mining rigs might be a very expensive process. Unless you are going to commit to this business in the long run, you should not entertain this idea. At times, you will also have technical faults in the mining rigs. To fix these problems, you have to spend a good amount of money. Include those costs in your mining business and find out how much money you can make from this industry. This data will help you to scale the business.

Conclusion

Mining can be a very profitable business for those who know the perfect way to run a rig. It requires constant supervision and adjustments to the strategy so that you can efficiently mine cryptocurrencies. Though new miners might not understand the importance of focusing on the minor details, it plays a crucial role in the ROI factor. So, follow the tips of this article very carefully.

Understanding Blockchain Technology

Blockchain technology finds its origin in the digital coin named Bitcoin. It was invented primarily to sustain it. Although blockchain is tightly associated with Bitcoin and other cryptocurrencies, these are just the top of the iceberg.

Blockchain technology finds its origin in the digital coin named Bitcoin. It was invented primarily to sustain it

Currently, blockchain technology is being used in other commercial applications, and annual growth of 51% is expected for 2022 in several markets, including financial institutions and Internet of Things (IoT).

What is blockchain technology, and what makes it secure?

A blockchain is a list of digital records or blocks of data that are stored in a linear chain that is constantly growing. It´s a kind of digital general ledger than can be shared with many users and that keeps record of every transaction. Each block contains encrypted data, for instance of a Bitcoin transaction, and is linked to the specific user that made it. There´s no way to alter the data in them since they are time-stamped and connected to the previous block.

The security of blockchain relies on the fact that it can be updated only with the agreement of all the participants and the system itself. 

The information of the whole chain is kept in each node, so each participant has an exact copy of the entire chain. If someone wanted to attack the service, he should overturn or nullify every node in the net given that just one operative node is enough for all the information to be available. 

As new records are created, these are verified and validated by the nodes and added to a new block that is linked to the chain. Once added, this block becomes unalterable. For a transaction to be accepted and added, some specific digital signatures or requirements must be met. For example, people that use the crypto-currency Ethereum, must meet several conditions to demonstrate that they have that crypto-currency and can operate with it. 

Why is blockchain useful for?

As it is a peer-to-peer network, where transactions are time-stamped, and that enables managing all the information exchange among the users in an autonomous way, without the need for an administrator, it is an excellent tool for all types of businesses. Any information that needs to be kept intact and available can be safely stored in a blockchain. 

Many industries, such as transport, fintech, and sanitary services, to mention just a few, are taking advantage of this technology that streamlines processes, improving productivity. 

Challenges organizations or companies could face with blockchain

Thanks to blockchain, the operative models and business-making models of the companies and organizations could undergo a total transformation with the adoption of blockchain technology. Many organizations are using blockchain technology for their transactions. Still, if it were massively adopted, one of the challenges that governments of extremely controlled sectors will have to solve is the lack of regulation.

Blockchain is complex, and it takes a longer time to process any transaction. It can take hours to complete a transaction. And the more it grows, the slower it gets. This could be an obstacle for specific industries.

Despite the above, the biggest challenge that blockchain technology faces is the reluctance of private and public sectors, along with the skepticism of the potential users who, as with each new technology, need time to learn, get used, and trust.  

See also about Modern Monetary Theory and Internet of People – IoP