Bitcoin has been quite predictable over the years especially when you look at the charts since it’s inception. Yes, crypto is extremely volatile but there is an event that happens with bitcoin that essentially helps sky rocket the price. I’ll be going over the bitcoin halving, why we will be seeing a massive bull run and sick gains to follow.
In about 1 month bitcoin mining rewards will be cut in half! This is known as the Bitcoin halving or halvening. This is something that happens every 4 years since it’s 2009 inception. So those who mine Bitcoin can expect 6.25 Bitcoins per block as opposed to the 12.5 coins they currently receive.
First off, Bitcoin was created after the financial crisis of 2008. The halving was put in place as a deflationary mechanism. We know exactly how many Bitcoins exist currently and how many more can be mined in the future. With a finite supply the asset will become more scarce over time.
What To Expect
We are now entering the 3rd Bitcoin halving in 2020. Leading up to the halving the past 8 years, there was a lot of hype surrounding the event. Let’s be clear here, nothing magical really happens the day of the halving. Miners just earn less Bitcoin. This is not good for them since the process involved with the mining costs a lot of money.
It is the months after the halving that see parabolic rises in price. It is not a proven fact that this will happen a 3rd time but if history repeats it self, 2021 will be an incredible year for Bitcoin and cryptocurrency. With Bitcoin rising in popularity and the fact it will be tougher to mine the asset, ultimately sicks gains will be had.
What you have to remember is the price of Bitcoin before the first halving was around $12 and ultimately rose to nearly $1,000, one year later. Before the 2nd halving Bitcoin was under $600 and peaked at $20,000 a year and a half later. Mind you Bitcoin has not had a price of $600 since October of 2016. If history follows past trends the third Bitcoin halving should produce something special very soon.
If you are looking to get in to Bitcoin before a potential parobolic run, now would be a great time. The best place to currently get Bitcoin with a debit card is Coinbase. If you liked this article check out How To Earn Free Cryptocurrency.
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