The Price of Bitcoin in 2020Finance | December 21, 2020, Monday // 08:24| views
Bitcoin is a digital phenomenon that has taken the world by storm. Although it has had ups and downs, in terms of its price, 2020 has been a very successful year for Bitcoin. In fact, it’s safe to say that it has gained a new burst of popularity among investors. In this article, we provide an overview of the price of bitcoin in 2020 and the main factors that have influenced this upward trend.
Bitcoin halving is an important event for the entire Bitcoin community, as it is for the miners. Bitcoin mining is the process where new BTC enters into circulation. Furthermore, miners are responsible for approving new blocks of transactions in the blockchain network by solving complex computational problems.
This is a very simplified version of the actual work miners do, while they are expected to use high-end computers with good hardware in order to mine. Also, mining gets increasingly more difficult as more people become miners. That being said, a lot of people are joining mining pools because it’s more profitable to mine as a group and to share resources.
Of course, they are rewarded for their work, and they receive a block reward for validating the transaction in the blockchain network. However, the halving is an event that cuts in half the block reward every four years, or after 210,000 blocks. At first, mining was quite easy to do, and the reward was 50 BTC. After the first halving in 2012, it was down to 25 BTC, and then in 2016, it decreased to 12.5 BTC; finally, in 2020, it reached 6.25 BTC.
The Price of Bitcoin After the Halving
So, as we mentioned earlier, it’s increasingly more difficult to mine BTC, while the rewards keep getting smaller. This affects the overall supply of BTC (which was capped at 21 million BTC by Satoshi Nakamoto) and the price of bitcoin. Actually, the price skyrockets after each halving. In 2020 it went from $11 to $12. Then, in 2016, it increased from $576 to $650. Lastly, in 2020, it has climbed from $8,500 to $9,500.
Afterward, the price of bitcoin followed an upward trend. More specifically, the average price in April, May, and June stayed within the range of $8,773 - $9,188. Then it continued to grow in the following months and reached a price of $10,764 in September. In the subsequent months, the price skyrocketed, and in November, the average price was around $19,157.16.
Needless to say, there were even more media hype surrounding bitcoin and an ever-increasing number of people that wanted to invest in BTC. And because mining is time-consuming and expensive for the average person, most people are turning to online trading platforms. It is more a convenient way of obtaining BTC, and there are platforms suitable for beginners.
One such platform is Bitcoin Evolution. Bitcoin Evolution is an auto robot that can generate a daily profit of up to $800 for user that have deposited a minimum amount of $250. If you want to check out the platform, follow this link for further details.
Moreover, members on the site get a comprehensive trading manual, and they also access a demo trading platform. Hence, this will be very helpful for beginners that want to get into trading and have no prior knowledge. Otherwise, you can easily open a live session by clicking the live button.
The trading app is accessible on desktop and mobile devices, so you can effortlessly access your account on the move.
The Bull Cycle in 2020
It should be noted that bitcoin is still considered a volatile asset. However, 2020 marks profitable years for the cryptocurrency when it managed to surpass a worth of $20,000 by the end of 2020. Even though bitcoin had also had a bullish run in 2017, this time is different for one big reason. Institutions like governments, hedge funds, and public companies have shown continued interest in BTC.
So, beyond the interest of companies and individuals to obtain BTC, institutions are driving the growth of Bitcoin. Also, a lot of experts predict that thanks to the interest of the institutions, it will be much easier for BTC and other cryptocurrencies to go mainstream.
It’s predicted that the price will continue to rise in the future, and bitcoin will continue its vertical climb in 2021. In fact, it’s estimated it will reach $50,000 by 2023, while other experts predict it will grow to $100,000 by 2025.
Overall, the gold rush is far from ending anytime soon. Also, as the supply is limited and the next halving is expected around 2024, it is it’s definitely very understandable why so many people and businesses are looking to invest in BTC.
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