Two Elements That Will Drive Bitcoin's Price in 2020 | DataDash
Welcome to this blockchain and crypto currency video by DataDash. In this video, you will learn from Nic two elements that will drive Bitcoins price in 2020, 2021 and 2022.
Quantitative Easing effect on Bitcoin and Cryptocurrencies
Bitcoin and other similar cryptocurrencies have a fixed supply. It is on a set schedule and we know when and how much Bitcoin will be released into the supply. In FIAT currencies around the world, we do not know this information. Central banks around the world have been printing money at a faster and faster rate. This devalues money and makes it hard to know the purchasing power of a dollar in the near and far off future.
Interest Rates (Negative Interest Rates) effect on Bitcoin and Cryptocurrencies
Negative interest rates will make Bitcoin more appealing. As negative interest rates and lower interest rates come into existence long term bonds and yields see a steep decline. There will be a huge drive for a hedge against assets that don't have quantitative easing. Bitcoin, Gold, and Silver are among the only assets that can be hedged against negative interest rates and quantitative easing.
Bitcoin Halving 2020, Bitcoin Mining
The amount of Bitcoin being released into the supply is being cut in half. If demand stays the same while the supply of newly created Bitcoins goes down. The price of Bitcoin is going to become more valuable.