The bitcoin halving scheduled for this coming May is likely to give rise to a new bout of crypto millionaires, analysts claim.
Will the Halving Make Hodlers Rich?
Over the years, bitcoin has earned a reputation for boosting one’s wealth. At the same time, its volatility has also struck fear into the hearts of traders everywhere. It’s just as easy to become extremely rich with crypto as it is to become broke. Your crypto has as much chance of going up as it does of disappearing overnight.
But those who have put their faith in bitcoin and stuck with it usually find themselves on the winning end of the court. Thus far, bitcoin has experienced two prior halvings, and both events have allowed several users to become quite rich. One is J.R. Forsyth, the founder of Onfo.
As an undergraduate in college, he was studying math and exposed to BTC and blockchain technology during his time in school. In an interview, he explains:
It became obvious to me that math-based currencies (like bitcoin) would eventually supplant sovereign notes. I mined bitcoin and Litecoin early on and held onto them. The massive appreciation of those assets allowed me to invest in other cryptocurrency technology which ultimately led to the development of Onfo, a platform that helps people earn money through network mining.
In addition to the upcoming halving supporting bitcoin further, many analysts believe that the release of stimulus money to citizens in the United States as a result of the growing coronavirus pandemic could potentially lead to inflation and other problems for the U.S. dollar. They’re convinced that this will provide a lot of room for bitcoin and cause traders to look to it as they seek to hedge their wealth.
Todd Crossland – CEO of Coin Zoom – explained in a statement:
While I applaud and support the government in taking the most aggressive measures in providing stimulus for the economy, just the magnitude of the stimulus and printing of dollars, and the accompanying debt gives me a reason to pause. The stimulus will come with inflation and subsequent pressure on the value of the dollar. In my opinion, this paints another bull case for bitcoin and digital assets.
Ray Dalio – a billionaire investor and the founder of Bridgewater Associates – believes that in the coming future, there is going to be a massive shift of wealth. Many of his “fans” have decided that bitcoin and crypto holders are the people likely to experience the benefits of this shift and have turned to hodling.
Inflation Might Be On Its Way
Dalio states:
Governments that have the power to do so are printing money to help ease the debt burdens and help finance the expenses that are denominated in their own countries, which will weaken their own currencies and raise their levels of monetary inflation to offset the deflation that is coming from reduced demand.