Economy
Bitcoin Beyond Halving: Predicting the Path to the Next Decade
Introduction
Since its inception in 2009, Bitcoin has captured the world’s attention and revolutionized the financial landscape. Its decentralized nature and limited supply have made it a magnet for investors seeking an alternative to traditional fiat currencies. As the decade-long journey continues, analysts and enthusiasts are closely observing the impact of halving events on Bitcoin’s price and overall trajectory. In this article, we explore the possible scenarios for Bitcoin in the next decade, reflecting on its past performances while keeping an eye on emerging opportunities. So, if you are planning to invest in crypto like Bitcoin, you may consider visiting a reliable trading platform such as the Immediate Momentum platform.
The Halving Phenomenon: A Defining Moment
What is Bitcoin Halving?
Bitcoin’s protocol incorporates a unique feature known as “halving,” programmed to occur approximately every four years. During this event, the mining reward for successfully adding a new block to the blockchain is reduced by half. This process ensures a controlled and predictable supply of new bitcoins, making it increasingly scarce over time. So far, there have been three halving events, and each one has had a profound impact on the cryptocurrency’s price and market sentiment.
The Price Surge After Every Halving
After each halving event, Bitcoin has experienced an unprecedented price surge, defying expectations and setting new records. The first halving in 2012 witnessed the cryptocurrency’s price skyrocket from a few dollars to over $1,000 in 2013. Similarly, the second halving in 2016 saw Bitcoin’s price soar from around $600 to almost $20,000 in 2017, making headlines worldwide. The third halving in 2020 pushed the price above $60,000 in 2021. These remarkable price surges have drawn both institutional and retail investors into the crypto market, cementing Bitcoin’s position as the king of cryptocurrencies.
Market Volatility and the Long-Term Trend
While halvings have historically led to bullish trends, Bitcoin’s journey has not been without its fair share of volatility. The cryptocurrency’s price has experienced several peaks and troughs over the years, influenced by various factors, including regulatory developments, technological advancements, macroeconomic events, and public sentiment. Yet, beneath the short-term fluctuations lies a steady long-term upward trend, indicating Bitcoin’s potential for substantial growth in the coming years.
The Next Decade: Predicting the Path Forward
Institutional Adoption: A Game Changer
In recent years, institutional interest in Bitcoin has surged, bringing legitimacy and stability to the crypto market. Renowned companies and financial institutions have started integrating Bitcoin into their investment portfolios, recognizing it as a hedge against inflation and economic uncertainties. This institutional adoption is expected to strengthen further over the next decade, potentially propelling Bitcoin’s price to new heights.
Technological Advancements and Scaling Solutions
Bitcoin’s underlying technology, the blockchain, has undergone significant advancements, making the network more efficient and scalable. Segregated Witness (SegWit) and the Lightning Network are two notable developments that have improved transaction speeds and reduced fees, making Bitcoin more practical for everyday use. As these technologies continue to mature, Bitcoin’s utility as a medium of exchange could increase, bolstering its position in the financial landscape.
Regulatory Clarity: Paving the Way for Mainstream Adoption
Regulatory clarity has been a significant hurdle for cryptocurrencies, but over time, governments and regulatory bodies worldwide have started acknowledging their potential and addressing concerns. As clearer regulations take shape, it will likely attract more traditional investors, contributing to Bitcoin’s mainstream adoption.
Environmental Concerns and Sustainable Mining
One aspect that the next decade will undoubtedly address is the environmental impact of Bitcoin mining. The energy-intensive process has raised concerns about its carbon footprint. However, researchers and innovators are actively seeking sustainable solutions that could make Bitcoin mining more eco-friendly, ensuring a greener future for the cryptocurrency.
The Emergence of Trading Platforms
Empowering Investors through Technology
As interest in cryptocurrencies surges, online trading platforms have emerged, empowering investors to participate in the crypto market efficiently. These platforms utilize advanced algorithms and machine learning to analyze market data and make data-driven trading decisions. With user-friendly interfaces, they cater to both novice and experienced investors, making it easier for anyone to enter the crypto space.
Embracing the Future with Online Platforms
Most Platform offers various features, such as real-time market analysis, automated trading options, and risk management tools, ensuring that users can navigate the dynamic cryptocurrency market with confidence. By providing a seamless trading experience, platforms contribute to the overall growth and acceptance of Bitcoin and other cryptocurrencies.
Conclusion
As Bitcoin enters the next decade, it does so with a robust foundation and growing global acceptance. Predicting its exact path remains a challenge, but with institutional adoption, technological advancements, regulatory clarity, and sustainable practices on the horizon, the future looks promising for Bitcoin. As individuals and institutions alike continue to explore the cryptocurrency market, platforms will play a vital role in empowering investors and fostering a more inclusive financial ecosystem for the years to come.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited appreciated by 2.06 per cent on Friday, amid a rush for local equities due to encouraging earnings of companies for 2025.
Business Post reports that the buying pressure was across the key sectors of Customs Street yesterday, with the banking index growing by 2.49 per cent. The energy industry appreciated by 2.05 per cent, the consumer goods counter grew by 0.78 per cent, the insurance space improved by 0.64 per cent, and the industrial goods sector expanded by 0.44 per cent.
At the close of trades, the market capitalisation went up by N2.367 trillion to N117.027 trillion from N114.660 trillion, and the All-Share Index (ASI) gained 3,687.45 points to close at 182,313.08 points compared with the previous day’s 178,625.63 points.
Cornerstone Insurance, Infinity Trust, and Nestle Nigeria appreciated by 10.00 per cent each to sell at N6.38, N9.90 and N2,662.00, respectively, while Okomu Oil rose by 9.99 per cent to N1,327.00, with RT Briscoe up by 9.97 per cent to N17.42.
Conversely, SAHCO depleted by 10.00 per cent to M135.00, Guinness Nigeria lost 9.97 per cent to trade at N103.00, Omatek shrank by 9.39 per cent to N2.99, NPF Microfinance Bank decreased by 6.51 per cent to N5.60, and eTranzact slipped by 6.33 per cent to N10.80.
A total of 53 stocks ended in the green side and 33 stocks finished in the red side, representing a positive market breadth index and strong investor sentiment.
Data showed that 936.4 million shares valued at N52.7 billion were transacted in 50,068 deals on Friday versus the 698.3 million shares worth N28.438 billion traded in 50,886 deals on Thursday, indicating a rise in the trading volume and value by 34.10 per cent, and 85.56 per cent apiece, and a slip in the number of deals by 1.61 per cent.
First Holdco closed the session as the most active equity with 106.3 million units worth N5.1 billion, Zenith Bank transacted 72.6 million units valued at N5.7 billion, United Capital traded 45.4 million units for N963.2 million, GTCO sold 45.0 million units worth N4.9 billion, and Fidelity Bank exchanged 31.4 million units valued at N639.0 million.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose further by 0.86 per cent on Friday, February 13, with the market capitalisation growing by N20.27 billion to N2.378 trillion from the previous session’s N2.357 trillion, and the NASD Unlisted Security Index (NSI) rising by 33.87 points to 3,974.77 points from the 3,940.90 points it ended a day earlier.
The improvement recorded by the bourse yesterday was influenced by six price gainers led by Okitipupa Plc, which went up by N18.00 to sell at N260.00 per share compared with the previous day’s N242.00 per share.
Further, Central Securities Clearing System (CSCS) Plc added N3.39 to quote at N80.47 per unit versus N77.08 per unit, IPWA Plc chalked by 31 Kobo to finish at N3.44 per share versus N3.13 per share, Lagos Building Investment Company (LBIC) Plc gained 31 Kobo to settle at N3.41 per unit versus N3.10 per unit, Afriland Properties Plc appreciated by 31 Kobo to N16.51 per share from N16.20 per share, and Food Concepts Plc increased by 8 Kobo to N3.28 per unit from N3.20 per unit.
There were three price losers, led by MRS Oil Plc, which weakened by N10.00 to close at N170.00 per share compared with Thursday’s price of N200.00 per share, FrieslandCampina Wamco Nigeria Plc lost N2.59 to sell for N65.52 per unit compared with the preceding session’s N68.10 per unit, and Geo-Fluids Plc depreciated by 33 Kobo to N3.30 per share from N3.63 per share.
During the session, the volume of securities transacted by the market participants went up by 9.5 per cent to 9.4 million units from 8.6 million units, the value increased by 1,206.5 per cent to N703.6 million from N53.9 million, and the number of deals grew by 7.1 per cent to 45 deals from 42 deals.
CSCS Plc remained the most traded stock by value (year-to-date) with 27.1 million units exchanged for N1.5 billion, followed by Resourcery Plc with 1.05 billion units traded at N408.6 million, and Geo-Fluids Plc with 29.9 million units valued at N152.6 million.
Resourcery Plc ended the day as the most traded stock by volume (year-to-date) with 1.05 billion units sold for N408.6 million, followed by Geo-Fluids Plc with 29.9 million worth N152.6 million, and CSCS Plc with 27.1 million units sold for N1.5 billion.
By Adedapo Adesanya
The Naira depreciated further against the United States Dollar by N1.76 or 0.13 per cent on Friday in the Nigerian Autonomous Foreign Exchange Market (NAFEX) to close at N1,33.42/$1, in contrast to the N1,353.66/$1 it was exchanged a day earlier.
However, the Naira appreciated against the Pound Sterling in the same market window yesterday by N5.05 to trade at N1,844.59 versus Thursday’s closing price of N1,849.64/£1, and against the Euro, it improved by 75 Kobo to quote at N1,60/€1 versus the previous day’s N1,608.68/€1.
At the GTBank FX desk, the domestic currency lost N6 on the US Dollar on Friday to settle at N1,365/$1 versus the preceding session’s N1,359/$1, and at the parallel market, it chalked up N10 to trade at N1,430/$1 versus the previous day’s N1,430/$1.
The weakening of the Nigerian currency in the official market happened as the Central Bank of Nigeria (CBN) refrained from intervening in the official window.
The FX supply side was eclipsed by growing demand for foreign payments. Exporters’ inflows, non-bank corporate supply, and other market participants’ contributions had enhanced the FX liquidity level.
Pressure came with the entry of all duly licensed Bureau De Change (BDCs) into the official foreign exchange, although there are indications that the move will help the Naira-US Dollar exchange value, as BDC operators have started approaching their banks to understand the operational modalities and framework for accessing Dollars.
As for the cryptocurrency market, benchmarked tokens improved as US interest rate futures on Friday raised odds of rate cuts by the Federal Reserve after a report that showed inflation rose less than expected in January.
Data showed the Consumer Price Index (CPI) rose 0.2 per cent last month after an unrevised 0.3 per cent gain in December, with Solana (SOL) up by 7.9 per cent to $85.17, and Ethereum (ETH) up by 6.5 per cent to trade at $2,059.78.
Further, Cardano (ADA) added 5.3 per cent to close at $0.2758, Ripple (XRP) jumped 5.1 per cent to $1.42, Bitcoin expanded by 4.8 per cent to $69,357.35, Litecoin (LTC) grew by 4.7 per cent to $55.27, Binance Coin (BNB) jumped 4.0 per cent to $621.88, and Dogecoin (DOGE) increased by 3.8 per cent to $0.0965, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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