2020 Bitcoin Halving 7x More Impacting Than The Last One!!!
Today we have four trending pieces of news I’d love to discuss with you. First up, the 8-bit gaming platform on top of Lightning Network Satoshis Games announced that its newly-released game Lightnite, (yup!) you guessed it, a clone of Fortnite with built-in Lightning Network microtransactions, will enable players to earn Bitcoin in the game. Second up, the BTC halving block reward that will occur in May 2020 is predicted to be the most dramatic halving event, which is expected to remove $63 million worth of Bitcoin in circulation every week. Third up, in a recent interview with Reuters on Oct. 20, David Marcus, the head of the Libra project, stated that the Libra Project is open to using other fiat-pegged stablecoins, instead of the libra token. And the fourth news segment for the day, it looks like the Fed has just printed more money – reportedly pumping $210 billion into the economy, more than the whole BTC market cap. These money printing activities can result in a financial crisis even worse than that of 2008 – which is one of the prime reasons why investing in other assets that cannot have their supply inflated like Bitcoin may be a smart idea.
The Market Today
The market is currently a mixture of greens and reds. Bitcoin is currently experiencing a 0.08% decrease, standing at the $8,200 mark. Meanwhile, ETH and Ripple’s XRP are witnessing some gains with 0.53% and 2.45% rise respectively.
Satoshis Games introduced Lightnite with in-game BTC earning
According to Cointelegraph, it looks like Bitcoin-enabled (BTC) games startup Satoshi Games has recently announced the development of a Fortnite-like game with built-in Lightning Network microtransactions called Lightnite. Lightnite, which is based on the popular Fortnite game will allow players to earn Bitcoin tokens in the game. So how can players win Bitcoin? According to the announcement, all in-game interactions between players will trigger a monetary reward or penalty for the user. To be more specific, you will earn BTC when you shoot others and lose BTC when you get shot. In addition, some in-game items left by dead players have BTC value too. And you can also use both BTC and fiat money to buy accessories in the store. The company noted that
“Non-Bitcoin users can play the mode with no Bitcoin features and they’ll eventually get attracted by the enhanced interactivity allowed by the Bitcoin-integration and start experimenting with this innovative technology. This is also a way through which we want to contribute to the Bitcoin mass adoption.”
It’s definitely a great way to introduce gamers to the cryptocurrency sector. Let’s see whether LIghtnite will be taking off.
BTC’s 2020 halving could cut $63M supply per week
According to Cointelegraph, Bitcoin advocate and the cryptocurrency community noted that 2020 will be the “most dramatic” halving, which will remove $63 million worth of new Bitcoins in circulation every week. In an earlier video, we talked about the coming halving of Bitcoin rewards as we move closer to the 21 million BTC limit. For those who are unaware, the block reward refers to the number of new Bitcoins minders receive for mining a new block. Miners currently receive 12.5 Bitcoin tokens. But after the halving in May 2020, the reward will fall to 6.25. According to Crypto Rand, previous halvings in the past, like the one in 2012 removed $302,400, while the one in 2016, removed $8.19 million, which makes the one in 2020 which will remove $63 million, the largest most dramatic halving until this point in time. Previous halving events have led to an upward price motion. So many experts believe that 2020 halving in May will be no different. Furthermore, according to the popular Stock to Flow model, it has corroborated the theory that Bitcoin prices must surge as the mining reward decreases. Investor Alistair Milne broadly agreed with this notion. On the other hand, Jihan Wu, co-founder of mining giant Bitmain, mentioned in an interview earlier this month that the halving may not necessarily lead to the return of bullish sentiment.
Libra is open to government currency-pegged stablecoins
There’s been a lot of trending news surrounding the Facebook Libra token since its announcement, but according to Cointelegraph, it looks like Facebook is now reportedly open to the idea of using national currency-pegged stablecoins for its forthcoming Libra coming. As stated on Reuters, David Marcus, the head of the LIbra project for Facebook and CEO of Facebook’s wallet service Calibra, noted that Libra could use various fiat-based stablecoins. He mentioned at a banking seminar on Sunday that the main goal of the project was to create a more efficient payment system and that it was not opposed to looking at alternative approaches. In his words:
“We could do it differently. Instead of having a synthetic unit, we could have a series of stablecoins, a dollar stablecoin, a euro stablecoin, a sterling pound stable coin, etc […] We could definitely approach this with having a multitude of stablecoins that represent national currencies in a tokenized digital form […] That is one of the options that should be considered.”
If you haven’t kept up to date with the Libra project, the project suffered severe setbacks earlier this month, as major payment companies including Mastercard, Visa, Stripe, and eBay all withdrew from the Libra Association ahead of the agreement-signing ceremony. But that’s not all. Libra is also facing pressure from global regulators, who are expressing their skepticism over the project and its possible effect on global financial stability. Tomorrow on October 23, Facebook CEO Mark Zuckerberg will testify about the project before the US House of Representatives Financial Services Committee. So let’s see how that goes!
The Fed just injected $210 billion – More than BTC market cap
According to a report on Cointelegraph, the United States Federal Reserve just injected $210 billion into the economy, which literally surpasses the $148 billion market cap of Bitcoin. Now, this new move from the Fed was noted by cryptocurrency social media pundit Dennis Parker on Oct. 21. This injection is one step in the newly-revitalized quantitative easing (QE) strategy, where the US government buys government bonds and gives them cash in order to provide economic stimulus. The sudden act of the government sparked calls to decrease reliance on fiat currency. Furthermore, Parker’s suggestion that investors should buy BTC now came amid warnings from even the fiat establishment itself about the ailing health of the banking system. At the Monetary Fund’s general meeting, Bank of England governor Mervyn King believes that it is the printing and injection of fiat money that we are sleepwalking into a new financial crisis, which may be more serious than the previous 2008 crash:
“By sticking to the new orthodoxy of monetary policy and pretending that we have made the banking system safe, we are sleepwalking towards that crisis.”
Which guys, makes it a great time to explore other assets like Bitcoin and precious metals, at least one that you can have a lot more control over.
And there you have it guys! So what are your thoughts regarding all the news?
Are you going to try out Lightnite?
What do you think will happen during the May 2020 halving?
Do you think Facebook should work on a fiat-based stablecoin?
And are we headed for another financial crisis?
Please leave a comment right below to let me know what you guys are thinking.
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Disclaimer: Cryptopig content is written by a team of blockchain passionate people. We are not registered as investment advisors. Don’t take the information in this post as investment advice and make sure you do your own research before investing. Cryptocurrencies are a very risky investment, never invest more money than you can afford to lose.