Sunday, December 8, 2019

Grayscale: Retail Investors Paying No Mind to Bitcoin Halving

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Adedamola Bada
I'm Damola, a computer engineer from Obafemi Awolowo University. A crypto enthusiast, marketer, and writer who is seeking to achieve career excellence through hard work and positive contribution to the organization that aspires for excellence. Contact me on [email protected]

One of the top investment firms for all things crypto-related, Grayscale Investment, has voiced out an anomaly which has the potential of causing an unnecessary setback in the crypto community and that being the lack of knowledge shown by retail investors on the subject of BTC block reward halving.

The situation is so severe that investors who should at least know the basic happenings in the crypto industry are totally oblivious to the Bitcoin halving event.

Why Is Halving A Necessity?

The Bitcoin event being discussed presently is not the first of its kind. In fact, there have been two of such events in the past, making the upcoming one the third. The next event is scheduled to hold in mid-2020. The Bitcoin blockchain shows appreciation to individuals or groups who validate transactions by offering them rewards.

The term ‘Halving’ is used to describe an action taken by the network to cut back the reward by 50 percent and this occurs at intervals of 210,000 blocks. The intervals usually occur every four years. Halving serves a lot of purposes which include: facilitating transparency and fairness in the distribution of coins, providing miners with incentives to encourage careful validation of transactions to ensure that Bitcoin’s distributed financial network remains uncompromised.

What Does The Future Hold For Bitcoin After Halving?

Expectations continue to rise as May 20, 2020, draws nearer, which is the date Bitcoin halving is expected to take place. Popular opinions have it that the value of BTC will change after the event. Crypto enthusiasts have predicted the increase in the price of Bitcoin during the halving and if the previous halving events are to go by, their assumptions may not be totally off point.

Based on past records, a year after the first Bitcoin halving event took place, its value experienced a massive increase. Matthew Beck, Grayscale investment and research director, predicted the growth, saying:

“For investors with a multi-year investment horizon and a high-risk tolerance, the confluence of discounted prices, improving network fundamentals strong relative investment activity and the upcoming halving may offer an attractive entry point into BTC. This is especially relevant for investors building core strategic positions in BTC over time.”

Yet, the marketing strategies, media publications and public awareness employed to sensitize investors about the issue of Bitcoin halving have made little or no impact. A large number of investors are still lost to the concept even though it has happened twice before. Anyway, Grayscale has taken up the challenge to educate investors on Bitcoin halving and soon it is expected that everyone will be on the same page regarding the upcoming event.

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