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Binance: Expectations for Bitcoin Halving

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The countdown has started and we are just a few days away from the most important event in the crypto world: Bitcoin Halving. Today, Binance has published an article on what to expect from the event.

Throughout this week at CriptoTendencia we have offered timely information about the most awaited event by bitcoiners. Binance now communicates possible scenarios after Bitcoin’s Halving.

Bitcoin Halving and its possible scenarios

What does this mean for Bitcoin? Is Halving an event that we should celebrate or fear? And what should we expect after halving? ”Binance is questioned in the blog post.

Bitcoin’s Halving has sparked too much interest in the community, in fact, Binance notes that Google searches for “Bitcoin’s Halving” have reached impressive levels.

However, the event generates a lot of uncertainty and doubts about what will come next and Binance seeks to give us an answer.

No one, not even Binance, is able to sentence what the results of Bitcoin’s third Halving will be. Predictions are born from past behaviors and technical analysis.

Therefore, Binance notes that “Several factors will decide the outcome: the continued centralization of mining, the growth or decrease of the hash rate, the stability of the Blockchain network and, of course, the price.”

Possibles scenarios

Mining Death Spiral

Every prepared investor should explore all possibilities, even pessimistic ones. Although the “death of Bitcoin” after Halving is unrealistic, we must consider the possibility.

In particular, some experts have studied the possibility of halving causing a mining death spiral caused by the drop in price. Which would lead the miners to liquidate their positions and, consequently, would generate a death spiral by generating constant selling pressure.

However, Binance notes that this is the least likely of the four scenarios he presents in the article.

Deceleration

This remains a pessimistic scenario, however less so than the first.

This scenario arises from fears “Not only the possible drop in the speed at which miners extract the new blocks, but also the possible slowdown in the public interest and the adoption caused by the eventual drop in prices”Binance’s report notes.

Without reaction

This is a neutral scenario but considered by Binance as the most realistic. In particular, it is a situation where we go through the Halving of Bitcoin and, as in the previous ones, nothing happens.

This scenario considers the possibility of volatility in the short term and selling pressures by less efficient miners and market speculators. However, later on, the hash rate would increase slowly but steadily.

Space rocket

The most desired scenario for all Bitcoin lovers: See their favorite cryptocurrency taking off to new highs.

“Here we work with prediction where anticipation and the public interest generate an influx of new money, increasing purchasing pressure and raising the price of new ATHs. With the increase in the price comes the increase in the hash rate and the dominance of the Bitcoin market grows ”, it is read in the publication.

Will Bitcoin Halving fulfill everyone’s dreams?

No matter what happens next, Bitcoin is here to stay

Binance claims that no matter what happens next, Bitcoin is here to stay. And we verified it after the crisis caused by COVID-19, where the need for money that “Be resistant to censorship, decentralized, without borders and with pre-established inflation rates that avoid sudden devaluation.”

Furthermore, Binance also believes that increasing access to affordable and renewable energy, combined with the rapid improvement of the Internet infrastructure and access to knowledge, will prevent Bitcoin from disappearing.

What do you think is the most feasible scenario? At CriptoTendencia we want to know your opinion.



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