Crypto

2020 Bitcoin Halving Attracts a lot of Interest From Institutional Investors

More often than not, people actively wonder who is responsible for buying up the newly mined BTC on the network. As it turns out, institutional investors may play a bigger role in this process than originally anticipated. 

Unlike traditional forms of money, Bitcoin has not hit an actual supply cap as of yet.

Institutional Investors are Shopping for Bitcoin

Instead, there will be an ongoing process of minting new BTC for  another 120 years, until 21 million BTC have been reached.

Recently, the Bitcoin network saw its block reward cut in half, as occurs every four years.

With fewer BTC being generated on the network every day, the scarcity effect begins to kick in slowly.

It now seems that institutional investors show a keen interest in buying up these minted BTC after the recent block reward halving.

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The overall “stockpiling” of Bitcoin by these investors has increased significantly.

GBTC, for example, has bought up 17% of all generated BTC since the halving took place. 

If that is an indication of what the future may hold, things are bound to get very interesting.

With more Bitcoins being bought up globally, a price increase seems likely to occur.

So far, the world’s leading cryptocurrency continues to struggle to break the $10,000 mark in a convincing manner once again.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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