Bitcoin seems to be performing quite well by 2020. Will Bitcoin achieve more than ever this year?

Bitcoin

It seems that 2020 is the year of Bitcoin. Many analysts say that fundamental market and technical indicators show the top cryptocurrency performance. Here are 5 factors causing Bitcoin “whirlwind”.

Halving Bitcoin

Before talking about the factors that make BTC increase in 2020, let's talk about the eternal problem: halving. Yes, this will be the year when Bitcoin becomes twice as scarce.

Halving Bitcoin will take place in May. Most previous halving events saw a significant increase in profits. This shows that 2020 will be the year Bitcoin works best.

Halving is still the brightest event for Bitcoin this year, but not the only one.

Global debt hit a record high

Global debt has exploded over the past two decades and peaked last year. The global debt estimate by the end of 2019 is about 250 trillion dollars, led by the United States and China. This shows that the problems with the fiat system are increasing.

However, the debt system also creates a specific case for Bitcoin. As a deflationary currency, it cannot counter the use, fiat abuse and debt financing trend. The deeper it gets into this debt pit, the more obvious the case of Bitcoin becomes.

Cash bans will become more common

What makes Bitcoin “attractive” is that it is fungible. Often referred to as “digital money,” Bitcoin provides a decentralized alternative. Given recent restrictions from cash transactions, it can be seen that BTC and other cryptocurrencies are undergoing a significant transformation.

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One of the most obvious examples is Lebanon, where cash withdrawals have been limited. (Al-Jazeera) When it comes to effective control, governments around the world are suspicious of cash and seek to control privacy wallets. Recently, banks operating in Lebanon have taken a new perspective, saying that Bitcoin is the key to solving this situation.

Banks continue to abuse their power

Over the past year, the amount of money that central banks pump into the economy is increasing. In January alone, the Federal Reserve NY pumped $ 57.7 billion on January 4 and another $ 55.3 billion on January 24. dollars in the next 1 month to bring the market to equilibrium.

However, everything is nowhere compared to what the People's Bank of China has done. In response to concerns about the Corona virus, the bank printed about 1.2 trillion yuan ($ 173.8 billion) to reduce economic hardship, more than Bitcoin's entire market capitalization.

Central bank evasion policies are another reason why the Bitcoin case is clearer than ever and a good sign for its future in 2020.

Historically, the Bitcoin bottom was found around the 3rd year of every 4-year halving cycle. During the first 4-year cycle, it increased by about 13,378%, the second cycle increased by 12,160%. The question is how long will this cycle increase?

Thuy Ngan

Bitcoin Magazine | Beincrypto

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