The end of 2020 is projected to close with an increase in cryptocurrency, after at the end of November the world was shocked by an explosion in the price of Bitcoin crypto assets which penetrated 19,319 US dollars, almost touching the highest point reached on December 17, 2017, namely 20,089 US dollars.
This phenomenon was never unexpected because in March 2020 the price of Bitcoin dropped to a level of 3,600 US dollars per Bitcoin, but a month later it had doubled to 7,000 US dollars per Bitcoin. When compared to April 2020 prices, the Bitcoin price on November 25 yesterday has increased by 250 percent.
The Bitcoin price rally is believed by various parties to continue thanks to a number of factors, including the Bitcoin halving which entered its third phase on May 12, 2020.
Halving or halvening Bitcoin is the process of reducing the supply of Bitcoin due to the limited amount of Bitcoin which is only 21 million Bitcoin. Because of this, the creator of Bitcoin, Satoshi Nakamoto created a protocol to cut rewards for miners by 50 percent for every 210 thousand blocks, or roughly every 4 years.
The first halving took place in 2012, the second in 2016, and the last in May 2020. In the first phase, the price of Bitcoin skyrocketed more than 9,600 percent, from 12 US dollars to 1,160 US dollars as of November 2013, or a year after the halving.
The second halving was in July 2016, the price of 1 BTC at that time was around 600 US dollars, and after the halving, the price of Bitcoin skyrocketed again, even breaking an all-time record to reach 20,000 US dollars in December 2017.
"Because it's not surprising, we see history repeating itself at this time. At the time of the third halving in May 2020, the Bitcoin price was at 8,500 US dollars per BTC. But now, 6 months after the halving, the price broke 19,000 US dollars on Wednesday 25 Last November, or an increase of more than 220 percent, "
Another event that is considered to have also skyrocketed the price of Bitcoin when this occurred in Uncle Sam's country, where last July The Office of The Comptroller of the Currency (OCC) aka the United States Currency Supervisory Office allowed banks in the US to hold crypto assets. This triggered an increase in demand for various crypto assets, such as Bitcoin, particularly in the United States.
The last breath of fresh air that will allow the massive expansion of crypto asset usage comes from PayPal. On October 23, 2020, PayPal declared that 346 million of its users could buy, sell and store crypto assets on its platform. This triggered an increase in demand which pushed the price up past 12,950 US dollars per BTC by the end of October 2020.
The phenomenon of skyrocketing Bitcoin prices is accompanied by increases in the prices of other cryptocurrencies such as Ethereum (ETH), Ripple (XRP) and BINANCE Coin (BNB). JP Morgan analyst Nikolaos Panigirtzoglou in an interview with The Guardian on November 17, said that the increase in crypto asset prices could not be separated from the effects of the crisis due to the COVID-19 pandemic.
"This crisis has triggered a reevaluation of the value of Bitcoin as an alternative currency, as well as an investment alternative to gold," said Nikolaos.
"Public confidence in Bitcoin has started to recover after the market crash in early 2018," he added that now is the right time to turn crypto assets into new investment fields and add to existing portfolios.
"We certainly don't want to miss the carriage again for the umpteenth time to be able to take advantage of investing as well as trading crypto assets. We at Tokocrypto also continue to improve security as well as various features on our platform so that we can continue to be a trusted crypto asset trading center in Indonesia,"
to welcome the Bitcoin price movement towards its highest point, Tokocrypto held the Bitcoin Bull Marathon program. "In the activities that will be held starting Monday (30/11), those who deposit and trade will receive very attractive rewards. Especially at Tokocrypto, transaction fees are very low, only 0.1 percent and rupiah withdrawals are only Rp.5,500."
