Home Health In 2022, Bitcoin could continue to rise in value

In 2022, Bitcoin could continue to rise in value

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“The euphoria on Bitcoin may not stop as easily as in previous halving cycles.”
This is said by Filippo Angeloni, one of the leading Italian experts in Bitcoin and cryptocurrency investments, founder of New Digital Finance (financial education company), co-founder of Koinsquare and founder of Athena SCF, an independent financial consultancy company. But let’s take a step back to explain this technical term and what it has to do with Bitcoin.

What is Bitcoin halving?

Halving is a process that halves the Bitcoin reward that miners receive as a reward for creating a new block, which is a set of transactions made with Bitcoins. This incentive system was created to push mining and make sure that the blockchain is increasingly secure thanks to multiple checks on the transactions that have taken place. Returning to the definition of halving, this mechanism means that every certain number of blocks the total number of Bitcoins with which miners are rewarded should be halved, in order to calm the creation of new BTCs and not immediately reach the total supply of 21 million. of BTC predicted by Satoshi Nakamoto, inventor of Bitcoin. And it is important to note that usually after each halving the price of Bitcoin historically increases.

“We are used in the various Bitcoin halving cycles to see the top of the market 12-18 months after the halving. I’m sure this time Bitcoin will surprise us in one way or another “, explains Filippo Angeloni again.

“To date, unlike in 2018, the players involved are very different, we have states and listed and non-listed companies that accumulate Bitcoin. We have positive data regarding on-chain analysis, and we also have many more services than before. “

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Bitcoin halving and pandemic drive prices up

Not only that, one of the reasons why Bitcoin rose by over 120% during this year would also be to be found in the Covid-19 pandemic and the consequent economic crisis also due to the increase in inflation.

“The Covid-19 pandemic has interfered with the halving cycle of cryptocurrencies in a positive way. Bitcoin is beginning to be perceived more and more as an undeniable asset that escapes the clutches of government claims “.

And what will the altcoins do instead?

If this analysis by Filippo Angeloni has focused so far on Bitcoin, here is his thoughts on the other cryptocurrencies, also defined as altcoins:

“It still remains an unknown how altcoins will behave, especially the highly inflationary ones. One thing is certain: in this delicate moment it is necessary to be careful about how to re-balance your crypto portfolio. A good idea might be to start taking profit on altcoins through a gradual, month-by-month sales strategy to transfer your earnings into Bitcoin and / or stablecoins ”.

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