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Bitcoin Crash: Can it get any more interesting?

Bitcoin Halving
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During the last week of August, there were talks of Bitcoin hitting $12K and holding support beyond the $10K threshold. But, unpredictable happenings are the norm in the crypto world. The bitcoin crash last week was one of its kind. For the first time since July, Bitcoin went below the $10K mark.

There are mixed signals coming out of the market. Many crypto influencers on social media are suggesting that its time to buy the dip. Some pessimists are simply disappointed in BTC. However, there are a few enjoying the stress. One of them is PlanB, the creator of stock-to-flow Bitcoin (BTC) value charts (related to Bitcoin halving).

On Sept. 4 the person with pseudo name PlanB said in a podcast with Peter McCormack:

We’re four months after the halving, and it’s about to get very interesting.

PlanB developed the Stock to flow price model to describe the relation of BTC price with the halving event. Halving is basically the slicing of mining rewards in half. His model suggested that price rise followed the halving event. Also, it made the prediction of BTC hitting close to $288,000 by the time of the next Bitcoin halving.

PlanB was also critical of fiat. He, like many others, believes that paper money has to be replaced as central authorities frequently make decisions that affect the value of the currency.

This is the solution, the hedge, against all this crazy debasement and quantitative easing. 

Rising Demand of BTC despite Crash:

COVID-19 pandemic has brought a rise in the demand for BTC. Governments around the world have announced relief packages for different industries to cushion the impact caused by Coronavirus. However, these incentives are likely to backfire as a result of increased money printing. Big investors are really pulling out of traditional stock markets due to fear of losing their money. BTC, despite its volatility, seems like an excellent alternative.

PlanB also acknowledged the fact that big investors are interested in Bitcoin investment more than ever.

We now are seeing pull from clients, from people that go to Fidelity and all the big players, and ask for Bitcoin in their pension fund.

So, the so-called bitcoin crash hasn’t stopped or even slowed down the adoption of digital currency.

It is definitely getting interesting, isn’t it?

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