Cryptocurrencies, especially Bitcoin, have a special significance in Tbilisi, Georgia. We will therefore provide information here about an “upcoming event” that plays a key role for many crypto enthusiasts in Tbilisi.
The cut-off date is 20 April. From this estimated date, the reward for mining Bitcoins will be halved. It is obvious that this circumstance provides the perfect breeding ground for speculation on further price jumps.
Bitcoin: 8% price drop in recent times
By now, we are used to the extreme volatility of the cryptocurrency. However, the recent major price drop of around eight per cent suggests a different picture. We have all seen how Bitcoin has experienced a strong upswing in recent months.
Market observers agree that this rapid price drop is primarily due to the imminent “halving”. Since the beginning of the crypto era, this has been considered one of the most important events in the global crypto industry. International crypto experts are certain that this is primarily a “psychological event”. The halving of the mining fee pushes demand for Bitcoin and will therefore fuel the price in the long term.
In retrospect, the halving event of Olympic proportions takes place cyclically every four years. Miners only receive half the value of the coins for mining (by exchanging computing power), which is paid out directly in Bitcoin. This is not a “natural phenomenon”; the halving process is deeply embedded in the code of the Bitcoin clockchain and has been planned for the long term. In the long term, the generation of new BTC coins must be reduced. Behind the plan is the avoidance of Bitcoin inflation. The algorithm behind Bitcoin stipulates that the total number of all coins must not exceed 21 million.
Bitcoin in Georgia - higher demand meets less supply
In the long term, the process of halving leads to increased market expectations for the price development. Halving means that fewer coins come into circulation as planned. Demand and supply of coins control the rapid price rally of recent months – resulting in a lower supply of the coveted coins. A closer look reveals an adjustment of the economic curve. As is usual in other markets, this has an impact on a sustained increase in the price.
However, our observations have shown that there are other reasons for the price increase. Since the introduction of exchange-traded funds (ETFs) based on Bitcoin, this market has opened up to institutional investors. Another reason is the entry into force of the Markets in Crypto Assets (MiCA) in the European Union. This new set of rules at EU level provides additional regulatory clarity for banks and financial institutions. This new basis will make dealing with cryptocurrencies easier and more transparent.
The creation of 210,000 Bitcoin blocks
The highlight of the Halving speculation is the basis for 210,000 additional Bitcoin blocks on 20 April, if the predictions are correct. The inaccuracy of the time period is based on the fact that the mining of individual blocks is variable. The actual event can therefore only be roughly calculated.
Our forecast - room for new price jumps is made possible
Everything with Bitcoin and other cryptocurrencies is subject to speculation. If you follow past trends, new price jumps are within the realms of possibility. Four halving events have already taken place. Every single event has resulted in enormous gains. Can Bitcoin still be held? In view of the numerous economic crises and the lack of trust in the traditional banking system, everything speaks in favour of a further boom in the exciting cryptocurrency Bitcoin.
Bitcoin is known for long dry spells
After a prolonged dry spell, the price of Bitcoin has risen continuously since October 2023. In mid-March 2024, the virtual currency broke through the threshold of 72,000 dollars (approx. 192,240 Georgian lari) with a new all-time record.
The boom is not limited to BTC; the price of Ethereum, the second-largest cryptocurrency by market capitalisation, has also shot up recently. Comparisons can be drawn with other capital markets – behind this are so-called macroeconomic trends. What is happening with Bitcoin is boosting the value of other cryptocurrencies, as it is fuelling a gold-digging mood.
Our conclusion and the search for the crypto "use case"
We know the typical criticism of Bitcoin and cryptocurrencies. It’s all just a question of market noise and euphoria. There is anything but intrinsic value behind cryptos. Yes, there are also many “fun tokens” on the market, as well as the community-backed DogeCoin, Elon Musk’s favourite toy when he’s not driving Twitter against the wall. The majority of established, genuine cryptocurrencies finance numerous new technology projects for new digital infrastructure projects on the basis of the blockchain. The situation is best explained by the 1990s and the introduction of the TCP/IP protocol at that time. This new technology was essential for the development of today’s internet.
You see – here we have our real use case and realistic investment opportunities beyond a fictitious bubble. Nevertheless, we will not be spared the immense volatility. As always, we advise our readers that expectations for returns may be high, but the possibility of drastic losses cannot be ruled out.
