- Bitcoin trading at a daily high of USD 7,798 so far as USD 8,000 comes into sight
- Bitcoin has almost half the inflation rate of world average after halving
- Bitcoin miner Ebang attempts second IPO for USD 100 million in USA
Bitcoin markets managed to do exactly as the bulls would have hoped for over the weekend, staying well above USD 7,000 and managing to keep above USD 7,500 the entire day on Sunday. Monday trading action has been quite intense, with a daily high so far of USD 7,798 (CoinDesk) suggesting that we could see a test of USD 8,000 to make a new high for April 2020.
And now, with just over two weeks away till the next Bitcoin reward halving, a new analysis point from famed crypto commentator Mati Greenspan says that the annual inflation rate will be 1.8% after the May halving, down from its current rate of 3.65%. This means that the annual inflation rate of the world’s most-traded and most-used cryptocurrency will be just about half of the global average.
In just 15 days, the annual inflation of #bitcoin will go from 3.65% to just 1.8%… approximately half of the global annual inflation rate.
At this point, adoption doesn't even need to grow to sustain the price anymore. Satoshi either knew what he was doing or got really lucky. pic.twitter.com/ml1eXZFrO4
— Mati Greenspan (tweets are not trading advice) (@MatiGreenspan) April 26, 2020
As of today, the global annual inflation rateis 3.56% in 2020, up slightly from 3.41% in 2019. So, according to Greenspan, Bitcoin doesn’t even need to rely on adoption for a price growth, although as we all know Bitcoin adoption is still happening at pace:
“At this point, adoption doesn’t even need to grow to sustain the price anymore. Satoshi either knew what he was doing or got really lucky.”
Of course, many have said that low inflation rate does not necessarily attract more people to Bitcoin, but it has little bearing on the hard fact that after the halving event on 12 May 2020, Bitcoin will have an adoption rate lower than that of the global average and lower than that even of gold, which is at 2.5% at the time of writing.
Since Black Thursday last month, Bitcoin has been more closely correlated to the precious metal, but once halving happens, it could escape even that standard. And with unlimited fiat printing and unlimited quantitative easing implemented by the US Federal Reserve, could Bitcoin look like a more interesting hedging asset to more and more Americans, just as Venezuelans and Iranians, among others, have found when faced with hyperinflation in their respective fiat?
Whatever the outcome, we can only wait and see. But one thing we will know is, Bitcoin mining sectors will be impacted by the immediate 50% reduction in new Bitcoin generated every block, as this directly means profitability is halved.
But miners are still going bullish apparently, as one leading mining rig manufacturer, Ebang International Holdings, will still try to go public, albeit abroad and on a smaller target of raising funds.
Based in China, it now hopes to raise up to USD 100 million from an initial public offering (IPO) in the United States. This is according to 24 April 2020 US Securities and Exchange Commission (SEC) filing that will see the Chinese company listed under the ticker symbol EBON on the New York Stock Exchange or on Nasdaq. The deal is being underwritten by Hong Kong’s Loop Capital Markets in Chicago and AMTD Global Markets.
This follows its initial attempt in June 2018 on the Hong Kong Stock Exchange (HKEX) which failed. That IPO would have been worth USD 1 billion had it gone through.
Ebang may not be as famous as Bitmain or Canaan Creative, but is in fact one of the pioneers of Chinese mining hardware firms focused on building the application-specific integrated circuit (ASIC) chips and fabless integrated circuits (ICs) that are now ubiquitous to Bitcoin mining machines. Today, two-thirds of the computing power supporting the Bitcoin network are contributed by Chinese miners.
Ebang took in USD 109 million in revenue in 2019, down almost 66% from the previous year, and tripled its net loss in the same year to USD 41.1 million. It still makes the majority of its revenue — 82% — from producing Bitcoin mining rigs.
BitcoinNews.com is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.
Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews
Image Courtesy: Pixabay
The post Trending Bitcoin News and Market Sentiment April 27th, 2020: Bitcoin Will Have Half of Global Average Inflation After Halving, Bitcoin Miner Ebang Attempts Second IPO for $100 Million in USA appeared first on BitcoinNews.com.
from BitcoinNews.com RSS Feed
via TOday BItcoin New
0 Comments:
Post a Comment