It’s that time again folks.
Welcome back to Triip Token Talk Ep.4.
This week we talk the third Bitcoin halving event; how it effect the price; indicators that may play a role in this price effect; TIIM used to purchase flight ticket and When listing coin.
Let’s get it !!!
What is Bitcoin halving?
2020 is expected to be the start of a new bull market for cryptocurrency mainly due to the hype around the halving event of bitcoin protocol. Satoshi Nakamoto has programmed bitcoin protocol to reward network nodes (or miners) for verifying each transaction, starting at a rate of 25btc per block or each 10-minute. This rate will be cut by half (approximately) every 4 year, amplifying the scarcity that is regularly associated with the bitcoin network. And scarcity enhances value.
To compare with endless money printing of USD-backed economy, this rate promises to stabilize inflation rate and prevents an abuse of unaccountable money policy which might cause hyperinflation epidemic that can be seen in Zimbabwe, Venezuela or Argentina in past recent years.
If functioned correctly as it’s planned out to do, the third Bitcoin halving event will take place on May 7th 2020. Reward rate will be cut by half, from current 12.5btc to 6.25btc per block.
So how does it affect the price?
People usually use historical market data to predict future trends. It’s worth noting that historical data should only INDICATE probable future outcomes that are similar, not DICTATE it.
With that being said,
Halving #1 see the 13,304% increase in price from last cycle bottom from $2.01 to $270.94. This parabolic move took 513 days.
Halving #2 see the 12,168% increase in price from last cycle bottom from $164.01 to $20,074.04. This time it took 1067 days, twice as much as previous.
If follow similar past trend, last cycle bottom price of $3,150 per bitcoin would top each bitcoin at between $385,000 to $425,000. At $385,000, total bitcoin market cap would be equivalent to the gold total market cap, near $8 trillion. However, it also means it takes longer than previous cycles as the same pattern emerges.
You might find more helpful and in-depth analysis in bitcoin historical data by the link below:
https://medium.com/swlh/bitcoin-halving-everything-you-need-to-know-4573dc5b528e
What causes Bitcoin price to increase/ decrease? What if it’s just another pump and dump as other financial markets?
Supply and demand.
Supply side of the equation means to assume that Bitcoin would operate EXACTLY as it’s programmed to do without any sign of 51% attack and other bugs that may happen to any information technology coding. That it continues rewarding 12.5btc to miners every 10-minute up to halving point, then drop to 6.25btc post-halving. And that it doesn’t have downtime, as seen in the last 11 years of its existence
Demand side of the equation means to assume that there will be more people find bitcoin helpful for whatever motive that have, from speculating, investing, saving, fleeing from warfare zones, political instability or simply just transacting values. At the end of the day, bitcoin network is just a tool to move values from A to B. And a tool can be used for whichever purpose that suits the user, regardless of moral conflicts (since morality is subjective).
However there’s one pattern that is worth pointing out: once a person starts grasping the potential of what bitcoin can do and the net positive it could bring to the world, or in other words fall into a bitcoin rabbit hole, they never come back.
Also because it’s a super psychological-savvy market, plus humans are extremely irrational, greedy and keen-to-recency-bias specie, the hype always outpace the promise as seen in past parabolic moves. Get your timing right!
When can we buy flight tickets and use the time TIIM for discount?
Ha. Enough with bitcoin.
As of right now, we don’t have plans to roll out purchasing flight tickets with TIIM token anytime soon. We do have contact with some first-tier airline agencies in Vietnam and Singapore, but we haven’t gone down that path yet.
Though you can now purchase tour and hotel with TIIM on Triip platform now. It’s live. If there are any problems in the process, please give me feedback to contact@triip.me.
When listing coin?
Quarter 2–3, 2020
Thank you all. See you next week.
