Halving is coming
Once in 4 years, all Bitcoin miners face an event, which cuts the number of coins they mine daily. At first look, it can seem like a disaster. However, it can be quite profitable for all miners.
Halving is an artificial reduction in the number of coins mined. Half of the reward occurs once every 4 years and affects not only the earnings of miners but also the value of the coin. It reduces the reward by 50% each time exponentially. The 2020 halving will occur on block 630,000. The next halving is going to happen in May 2020.
Halving helps Bitcoin create a deficit, increasing the value of the coin: the greater the demand, the higher the price. Taking into account the current mining speed and all the future holdings, the last BTC coin will be mined in 2140.
Bitcoin is set to be mined with only 21 million coins. Production is halved in order to prevent inflation. Unlike Central banks, which can simply print more cash, there is a limited number of Bitcoins that can exist, just like gold rather than the national currency.
Here’s what happened after the last halving (09.07.2016): the price reached the bottom ($500) 539 days before the event, then increased to $2525 in one year.
Reducing the supply of Bitcoin can have many consequences not only for the crypto market but also for the global economy.
And this will eventually either destroy the centralized banking system or at least constrain them and their inflationary policies, which will ultimately lead to a more just world.
Statistics for the past 7 years show that each halving was accompanied by a multiple increase in the exchange rate of cryptocurrencies.
Big changes are coming — Bitcoin Exchange Traded Funds, and countries all around the globe like Japan, USA, Australia, Denmark, Estonia and many others are using blockchain technologies and legalizing cryptocurrencies. Another halving is coming, these events will probably spur the growth of the price of Bitcoin.
Those who made the purchase at the bottom price will get a huge profit, but it is up to you to decide your own price threshold.