A project advocated by FaceBook’s Mark Zuckerberg, promises Crypto Financial Inclusion-to be more accessible to the underbanked globally bypassing high banking fees and allow users to send money as fast as a text message. Zuckerberg in his testimony to House Financial Services Committee on October 23, 2019, stated “China is moving quickly to launch similar ideas in the coming months.”
JP Morgan is the first US Bank to create a digital coin known as JPM
. It uses blockchain-based technology for instantaneous payments between business to business, with value equivalent of one JPM coin to one US dollar, according to their website jpmorgan.com
Bitcoin Halving, a cryptocurrency term for an event where the reward for mining new blocks is halved, which happens every 210,000 blocks (once every four years). Nakamoto Satoshi believed this event helps to keep Bitcoin’s inflation in check by reducing the supply of new Bitcoins, however increasing the cost to mine them and thereby increasing the BTC trading price over time with steady demand. Note: Hyperinflation occurs with uncontrolled printing of new fiat currency in world government economies, reducing its value.
Upcoming Bitcoin Halving may offer an attractive entry point for digital asset investing with considerations in high-risk tolerance and improvement in fundamentals, regulatory acceptance and price valuation as noted by Grayscale Investments, LLC.
However, others such as Bitmain Chief Executive Jihan Wu and Jason Williams, Co-founder at digital asset fund at Morgan Creek Digital advises that there is no clear evidence, no guarantee that a bull run will follow the Bitcoin halving event.
The Bitcoin as well as the Global Economy can be affected. Since many believe in Satoshi Nakamoto’s Bitcoin Experiment, which is that Fiat Currency over time will flow into Cryptocurrency. So, therefore monetizing Bitcoin, increasing its value in the future.
|| Halving Event
||Reward per Block (Satoshi)
|| BTC Block Reward New BTC/ 10 minutes
| May 2020
|| 12.50 BTC
| May 2024
|| 6.250 BTC
| May 2028
|| 3.125 BTC
Satoshi Nakamoto was able to program digital scarcity in Bitcoin by May 7, 2140 (Halving Event 33 -Bitcoin Supply of 21 Million in circulation). Since the Bitcoin Network mining operation began in 2009, it will be about 130 years when miners will not receive block rewards to mine Bitcoin. In Satoshi Nakamoto’s White Paper, he speculates that maybe there will be no need for miners to receive block reward after 2140 since they also earn transaction fees (when they confirm transactions in their block as well), which may be alone profitable enough to continue indefinitely and be completely inflation free.
chart from: criptomercados.net