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Bitcoin Rises, But What Will Happen in July at the Halving?

Source: bitcoin

Bitcoin halving

Bitcoin is back up! Since our last price piece and Ether’s rise to the top with arguably the largest crowdsale in history, bitcoin has grown by about $9 in price and is getting people excited once again.

Also read: Ether to Blame for Bitcoin’s Decline?

As with all ascensions, bitcoin enthusiasts are coming out of the dark with smiles on their faces and happily telling skeptics, “We told you so.” For a while, it appeared as if Ethereum was going hog the spotlight. A crowdfunding campaign that manages to raise nearly $200 million is certainly something worth noting, but in the end, bitcoin couldn’t be kept down.

How Will Bitcoin Fare Heading Into the Halving?

But how long will it last? As one source states, bitcoin production is scheduled to be cut in half starting in July. Naturally, this is bound to affect the price, but in what way, and by how much?

Some say the sky’s the limit. According to Gil Luria, a Webbush Securities analyst who covers the Bitcoin investment vehicle GBTC:

“There’s always a lot of factors in the price of Bitcoin, but all those things being equal, [the halving] should help the price go up, if for no other reason than of the rule of economics… It’s a function of the intersection of supply and demand, and the halving literally means there will be less [new] supply every day.”

In other words, this could be just the thing bitcoin needs to stay on top for good. After all, a scarce item is likely to hold more value than one that is plentiful or common.

But others aren’t entirely convinced. In fact, one of the big problems expected from the halving is the fact that miners will possibly have to deal with potential drops in profitability.

Miners are responsible for keeping transactions going on the blockchain. Often, these miners receive incentives based on the number of transactions they oversee. With fewer transactions set to take place, you can bet some of those incentives will disappear, which could ultimately lead to a disgruntled work environment among present members of the digital mining sector. Unless the bitcoin price doubles in a short time, bitcoin miners could see quick and massive drops in revenue.

Furthermore, if miners become fed up with the lack of financial security and exit the mining arena permanently, we’re likely to see blockchain security compromised over time. The primary fear is that transaction limits will be hit, leading to lost faith and ultimately, the coin’s final days.

While thoughts are running wild, one thing can be labeled as marginally true, at least for the time being: we don’t know what’s going to happen. Whether bitcoin doubles in price or doesn’t go anywhere at all, there’s no way to predict where digital finance will go. The halving is on its way, and there’s not much we can do to stop it. What we can do, however, is accept the changes that are likely to occur starting mid-July, and do our best to adapt and keep our favorite digital coin (and ourselves) afloat.

What do you foresee happening when the halving takes place? Post your comments below!

Images courtesy of insidebitcoins.com, jefflau.net.

The post Bitcoin Rises, But What Will Happen in July at the Halving? appeared first on Bitcoinist.net.

Bitcoin Rises, But What Will Happen in July at the Halving?

Pro 31

Best Investments of 2015 The Winners Are: Bitcoin And Cash

Source: bitcoin

Best Investments of 2015 The Winners Are: Bitcoin And Cash

Investing this year hasn’t seen the best outcome for investors this year. In fact, 70% of people investing this year had lost money according to Openfolio. The app is an open interface that peers can use to compare portfolio performance. The two best investments of 2015 were cold hard cash and the cryptocurrency Bitcoin.


Also Read: Coinbase Tests Bitcoin XT, Gets Removed From Bitcoin.org

CNN Money reports that making money through investing this year was pretty tough unless you did what’s usually looked down upon Hold a lot of cash or they took a lot of risk. That means if you held tight to your physical cash this year and invested in Bitcoin you’d be in a pretty sweet position. Bitcoin has gained over 40% of its value in the last three months of the year alone and rests at $430 a Bitcoin when it was $230 at the end of the summer. Cash as well is usually advised not to be held as a safeguard or investment has beat out most U.S. stocks, commodities, and bonds.

Bitcoin has remained stable throughout the entire year as well with a single spike and robust uptrend during the 12-month projection. If you base your position from the beginning of 2014 till today, the digital currency was a sound investment. MarketWatch writer Jack Tatar, who invested in the Bitcoin Investment Trust, says the digital currency has made his “retirement portfolio look good again”. The writer explains the currency had some rough times the year before and he had lost out in 2014 but not this year. He explains:

“That’s right, the value of my retirement investment in bitcoins since I last wrote about it has doubled.”  

The last three months of the year has given more optimism to Bitcoin as the price hurdled through many new high points. And we all heard how great the blockchain was and how every investor wanted a piece of the technology they didn’t understand. JP Morgan’s Jamie Dimon said Bitcoin wasn’t a good investment but the blockchain just might be. However according to mainstream media’s Bloomberg, Forbes, CNBC, and a long trail of others Bitcoin was in fact a sound investment this year.    

The digital currency has reached some milestones this last month of December as well reaching 100 million transactions globally. The currency grows harder to attain as miners have unearthed 15 million Bitcoins from the depths of computational algorithms. But behind the price ticker and the code things haven’t been all sunshine this year. The block size debate has ruffled quite a few feathers and has people wondering what the turnout will be. Some believe that an implementation called Segregated Witness will help the issue while others do not. This particular issue has some investors worried it may not be resolved.

2015 ended with a record-high in venture capital raising $485 million into startups and infrastructure this year. Three times the total in 2013 and better than 2014’s $315 million worth of VC injections. That was the theory of the previous years downfall that lots of capital was being poured into infrastructure over the currency’s price. This year the virtual money got a boost of both record VC funding and the price had reached new highs. The best investments this year was Bitcoin and cold hard cash.

Which investments did you participate in this year? Let us know in the comments below. 

Images courtesy of Redmemes, Shutterstock, and Pixbay 


The post Best Investments of 2015 The Winners Are: Bitcoin And Cash appeared first on Bitcoinist.net.

Best Investments of 2015 The Winners Are: Bitcoin And Cash