Representatives Grayscale Investment seriously concerned that many retail investors are not aware of the value of halving reward per block of Bitcoin, which is scheduled for may 2020. Tweet according to Joseph young, investors don’t know anything about this event. And this despite the fact that it has happened more than once.
What is halving Bitcoin?
As you know, in the ecosystem of BTC miner or group of miners are rewarded for confirming transactions. The reward for the block occurs while another block within the blockchain. Halving is reducing the reward for each block in half, which occurs at intervals of 210 thousand units. It has happened twice with an interval of four years.
According to Grayscale, many investors are not aware of the bitcoin block reward halving. As such, it still remains a key factor for the price and it is not completely priced in.
“We were surprised to learn that many of them were not even aware of this event.” (Grayscale) pic.twitter.com/Fg7A7SWJYt
— Joseph Young (@iamjosephyoung) June 7, 2019
The purpose of the reduction of remuneration is to stimulate fair and transparent distribution of the coins, as well as the motivation of miners to validate transactions with the aim of providing security of a distributed system of Bitcoin. In addition, it reinforces the scarce nature of the asset, which has a positive effect on investment attractiveness. With the foregoing Grayscale motivates gold investors to switch to BTC.
To do this, may 1 was even launched a special advertising campaign “Drop of Gold”. To reach more investors, advertisements will be spinning for about a year, until the immediate halving. The 39-second video shows the simplicity and benefits of investing in Bitcoin. The plot of the movie boy and girl are worn down to the financial district where most people bound in “Golden shackles” and because of this, seem to be unfree.
The main objective of advertising is to convince investors to invest in Bitcoin instead of gold. To expand the coverage of the Fund’s representatives have agreed to broadcast on radio, cable television and even streaming services in the Internet.
According to preliminary calculations, the following must occur halving may 20, 2020. As expected, the reduction of the bounty amount will fundamentally change the situation on the market of Bitcoin. At least it happened in all previous cases.
As halving will affect the price of Bitcoin?
Under forecasts of investors, the next halving the price of Bitcoin will increase substantially. Followers hope that this will not be a one-time jump in prices, rather steady growth. If you look at the previous two halving and trends that followed, the expectations are Bitcoin enthusiasts have every chance to make excuses. Data show that during the year after the last of kalingaw the cost of Bitcoin in dollar terms has increased significantly. Director of investments and research, Grayscale Matthew Beck also predicts growth of the asset:
For long term minded investors with high risk tolerance a combination of factors according to the type of collapse rates, improving fundamentals, relatively strong investment activity and upcoming halving may be indicators of favorable entry points into the market for BTC. This is especially true for investors that are inherent in a strategic approach to investing in Bitcoin.
A small concern is the fact that despite marketing strategies, increasing awareness in the society and the publication in the media, in fact not many investors are thinking about Bitcoin and especially challenge. And the good news is that companies like Grayscale aim to increase the level of education of investors and the public in the subject of cryptocurrencies.
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