The declining of the last 10 day of Bitcoin’s price below $ 6,500 and new data coming into effect after May. How the market is moving today.

Again Bitcoin falled, it broke the previous low of $ 6,500. What the hell is finally happening? If it's going to reach $ 100,000, where are the buyers? Why isn't it going up now? Are investors unaware of the halving that will take place in May? So stupid is it to lose the chance of their life? And well the new ones may not have been updated, but those who have been in space for a long time?

Halving

Let's start with what halving is. This is a turning point in the course of Bitcoin, which happens about every 4 years. The supply of money from the production of new coins is reduced by half.

The quantity of coins in circulation does not decrease. What is decreasing is the rate of production of new coins. In practice, this means that the cost of production for each new currency increases.

At the same time, at the same cost and cost, Bitcoin producers will be rewarded with half the coins from May 2020 onwards. In the ensuing halving, which will take place in 4.5 years from today, the proportion of new coins being produced in proportion to the existing quantity will be very close to that of gold.

For investors there is a particularity of Bitcoin to stocks, which many have not realized. In equities, if supply and demand from sellers and buyers are equivalent, the price remains stable.

How miners affect the price?

In Bitcoin, however, there is another category of sellers, miners. Those who spend time and money in order to keep the network running smoothly. Miners are paid with Bitcoin, which they post on the market to cover the running costs of their business (similar to most crypto). That is, they create price pressure, which in order to exceed the quantity demanded by buyers should cover not only the sellers but also the supply of miners.

How important is this pressure? For almost 4 years now, 1,800 new Bitcoins have been created every day, the vast majority of which are marketed. When the turnover is low, like at this time, the pressure is quite significant. If we make a rough estimate, $ 1,800 Bitcoin X $ 10,000, which is the average of the last few months, makes us about $ 18 million that goes on sale every day. If the daily turnover is around $ 1 billion, that money is little. They do not substantially affect the price. But if the turnover is around 100 million, then they affect it too!

But with halving, things change significantly. 18 million will not go on sale (assuming the price remains at 10,000), but 9 million. Consequently the impact of miners on the market is still but shrinking.

Nice of all of this, but has the market finally discounted it, or worse yet, is this whole story of scarcity nothing more than a magnificent bullshit? Perhaps the answer lies in the media coverage. If they deal with the issue, at least the most wanted of them will refer to the crucial issue of halving. Then they will know the importance of those who certainly do not know it and will want to take advantage of it, running to buy at any price.

Here's to highlight the big, huge shift there is, at least in the financial press. On the previous rise, the whole press was formally covered, if not negatively. He just mentioned the percentage increase. Now they are not going to have the same attitude. They now know enough about the subject and will handle it more responsibly. Even if they do not know, because it is really a niche topic for a financial author, they will be watching the major financial networks, such as Bloomberg and CNBC.

But if the world is not informed, then it is unlikely that Bitcoin will be moving in a psychedelic side-step for long, always with high volatility bumps.

Those who are actively involved in the field of crypto are few, a very small minority. It is estimated that less than 1% of the global population, who have bought Bitcoin or any other cryptocurrency at some point in their lives. Those who were Internet users in 1995, which shows the growth potential. Moreover, the issue is not only quantitative but also qualitative.

A significant percentage of those who have entered the crypto market have not even learned about Bitcoin, its features and prospects. They face it very superficially, as a speculative value that if lucky enough to stand, it will yield significant returns.

 If history repeats itself, then the rise will begin in February-March. If that happens, I insist IF, then maybe this is the opportunity of our lives. After 2-3-4 years, those who have gotten the value of 6-7,000 $ look at them as we see today those who bought under $ 1,000 the older.