Bitcoin halving seen to boost PH crypto adoption

Bitcoin ‘halving’ seen to boost PH crypto adoption

MANILA, Philippines — The Philippines is expected to soon experience another Axie Infinity phenomenon, an event characterized by the massive adoption of cryptocurrency due to positive sentiment toward these digital assets.

Local cryptocurrency exchange PDAX is expecting the scheduled bitcoin halving next month will spawn a new batch of traders, just like what happened in 2021 with then popular play-to-earn blockchain-based game where users earned tokens as rewards.

“I think this halving incident could lead to the greatest adoption of cryptocurrencies in the Philippines. I guess it is [another] Axie Infinity,” PDAX CEO and founder Nichel Gaba said in a recent event in Makati.

Article continues after this advertisement

In bitcoin halving, which happens every four years, production of new digital assets is slowed down to drive up their value.

FEATURED STORIES

This upcoming event is seen to lift bitcoin price to around P4 million, along with the recent approval of bitcoin exchange-traded funds in the United States that has enabled the digital assets to be traded via traditional regulated securities exchanges.

READ: Bitcoin rise getting more Filipinos into crypto

Article continues after this advertisement

Gaba observed the transaction volume at their platform growing by about four times recently.

Article continues after this advertisement

Apart from optimism about these assets, Gaba said more Filipinos are likely to get into crypto because now, trading these digital assets has become more accessible due to virtual asset service providers (VASP).

Article continues after this advertisement

Access to crypto

“This is the first halving event when around 80 million Filipinos have access to crypto on an app on their phone,” he said.

VASP is an entity that facilitates the transfer or exchange of virtual assets, which are digital units that can be traded online and used for payment or investment purposes. The Bangko Sentral ng Pilipinas has issued VASP licenses to 17 entities, including PDAX.

Article continues after this advertisement

For Filipinos who plan to buy into crypto, Gaba said, “The best advice is to do cost-averaging and to invest only the amount that you have the appetite to lose.”

READ: Tighten oversight of crypto exchanges in PH, gov’t urged

Cost-averaging refers to investing the same amount of money over a certain period of time regardless of the price of the asset, which can hedge investors from market volatility.

The popularity of play-to-earn games like Axie Infinity has driven the adoption of crypto in the Philippines, according to blockchain analysis firm Chainalysis.

READ: UnionBank, PDAX to offer cryptocurrency payment services

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

It noted that the Philippines made up about 40 percent of the player base of Axie Infinity at one point. The game even became a source of income for some Filipinos during the pandemic when the unemployment rate was high due to strict lockdowns.

TAGS: Bitcoin, cryptocurrencies

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.