The Bitcoin price index is the subject of debate for the industry especially as the debate around the May 2020 halving heats up and the bulls and bears are continuously in a tussle with each other. Bitcoin VC Tim Draper has made the news with a wild prediction that the price index might hight $250,000 “soon after May 2020” when the much anticipated halving will occur. The prediction is a wild one but in line of historical data. He made this prediction during an interview with BlockTV.
Bitcoin halving is a once in a 4 year event that was put place into the original algorithm to help create scarcity of the cryptocurrency on a long-term basis. Every 15 minutes or so, a new block of Bitcoin is created on the blockchain and 12.5 BTC are created as a result of this. This is called block reward and is claimed and shared by the successful mining pool that has mined it through a resource intensive process. After the May 2020 halving and everything goes according to plan, only half of that figure 6.25 BTC will be created over the same period of time thus causing scarcity of the asset resulting in increasing prices.
Tim Draper is known for giving wild predictions about the future of Bitcoin’s price index and has often flouted unrealistic figures that have been debunked over time. But, the truth is that there is considerable positive sentiment around the halving process and that might eventually see some sensible gains in the Bitcoin price index for sure. Even now, despite the halving two months away, the price has witnessed some notable gains amid a tussle between the bulls and the bears once again. Overall, on a yearly basis, Bitcoin is still 130% up and growing. So, it can be expected that the halving process will have an overall positive impact on the price index and it may end up increasing in the near future.
But, Tim Draper is also a shrewd investor and is probably looking to jack up the interest in the sector. He does have some correct predictions up his belt as a Venture Capitalist. He has made sensible investments in Tesla, SpaceX, Skype, Baidu and others. He also correctly predicted the 2017-2018 crypto winter as well. So, while his comments may not be taken to the word, it is true that they do hold some value and shows a string of positive comments coming from influencers and investors who hold considerable sway in the market.
Image Source: Pixabay.com
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