In this present reality where quantitative facilitating is surrounding us and as nations keep on printing more cash to keep economies above water, bitcoin is going to do the specific inverse – quantitative solidifying as the quantity of bitcoin rewards discharged into the market are sliced down the middle in the following barely any days.

As one on-chain examiner put it:

“The future inflation of bitcoin is going to be cut in half. Long term this is a very powerful mechanism and shows how bitcoin is a deflationary asset that potentially protects people from holding it long term against the loss of purchasing power caused by the central banks’ quantitative easing.”

SEE ALSOBitcoin was the Best Investment of the Decade, Says Bank of America Securities Report

In this post, we take a look at seven (7) reasons why bitcoin has continued to get stronger and why it is particularly relevant now amid a global crisis and an upcoming halving.

Here is why we believe bitcoin is now stronger than it has ever been and why this guarantees its survival and thriving way beyond the halving:

  • Price Rise – The price of bitcoin is surging and this rise is attracting more investments, which means it gets more attention. What is more, a rise in price means mining is more profitable which equates to higher network security
  • Significant Hashrate Increase – The processing power of the bitcoin ecosystem is at an all-time high. This increase is likely going to lead to more efficient miners coming in and further improving the network efficiency and security
  • Access to Crypto Services – It has never been easier to get onboarded onto the bitcoin space. We are seeing differentiated number of services that offer solutions dedicated to the crypto space
  • The Bitcoin Infrastructure – Infrastructures such as the Lightning Network and self-sovereign hardware like nodes are growing the space exponentially and opening up new business opportunities and use cases to the bitcoin network
  • Institutional Awareness – Institutional investors and funds have bought into the space which means traditional financial institutions coming in gives the space legitimacy
  • Narrative Relevance – The idea that everywhere around the world the supply of fiat currency is increasing at the same time that the issuance of bitcoin is decreasing is massively and instantly resonant. This contrasting narrative has never been stronger and hard not to see this.
  • Perceived Bitcoin Resilience – Bitcoin is the only asset that did not get any bailout, support or help and is doing just fine, the very definition of anti-fragile. This is true resilience and the only truly free market left. Bitcoin hodlers continue to accumulate despite prices going down which means the community is strong.

Bitcoin has been around for some time and continues to remain relevant and thriving. In short, its survival predicts its future survival. The longer it survives, the more it thrives.

As the bitcoin halving nears, the above points are likely going to be tested, and proven true, now, then, and way beyond the halving.

source:
https://bitcoinke.io/2020/05/reasons-why-bitcoin-is-stronger-than-ever-in-may-2020/

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