In this video I want to discuss bitcoin halving, what it is, when it will take place, and what may happen when it does take place to the value of bitcoin. Follow on Instagram: kyleklaus
Why you need to listen to this video is because I am coming from a beginners mindset in the crypto space, learning facts and historical data, to make an informed decision of what to do and at what time leading up to and after this halving event that takes place once every 4 years to get the most out of it.
So let’s see - just putting it out there - I own two bitcoins. I bought around the $7,000 mark after the big run up, it dropped down, then came back and has been up over that for some time now.
My thought process getting in was none other than pure speculation. I didn’t want to miss out. I had absolute fomo” and heard both arguments that it was going to go to $1mm a coin or could go to $0. I was willing to take the chance and my reasoning for buying two was that even if they spiked up I could sell one and then make my money back and keep the other invested. I didn’t even know that you could sell off parts of bitcoins called satoshi’s so that just shows you how much I knew about this before buying it.
#crypto #bitcoin #halving
So here we are before this “halving” event. I wanted to look more into this and see what it was.
So from an article from coindesk this is HALVING explained:
Also the link for the article is below:
The term "halving" refers to a programmed-in event in bitcoin's code, which reduces the reward per block mined by 50% every four years to control inflation. Following the upcoming halving, rewards issued will drop to 6.25 BTC from the current 12.5 BTC.
I’ve put a graph below that I got from this article that showed what the pricing of bitcoin was in the two prior halving events in 2012 and 2016.
Now after these two halving events they witnessed incredible gains 12-15 months FOLLOWING the halving events including the record hight of $20,000 in dec 2017.
That is what analysis’s are EXPECTING to happen AFTER the 2020 supply cut.
So what is halving explained in Lehmans terms:
“Halving will reduce the amount of bitcoin’s rewarded to miners, thereby reducing the supply of coins entering the market. Not only does halving boost the price as a result of the added scarcity, but the additional media attention and the positive impact this has had on bitcoin prices historically will drive up demand," said Don Guo, CEO of Broctagon Fintech Group.
Here’s a chart showing how it traded sideways for over two weeks following the second halving event:
What do I believe?
I believe there’s been a runnup of excitement regarding this event and there will be an initial pullback. That’s what I’m looking for is a price tag somewhere in the $7000 range if I even decide to possibly add some more which might only be 1 if that.
NOW:
Something to consider and why I believe this time might way outshine the past two.
Since bitcoin - as opposed to the previous two halving has pretty much proven itself that it is here to stay and is still in the early stages. With the backdrop of this whole RoNIE RONIE situation - we could see unprecedented gains. With the WORLD - not just the US economy but the WORLD searching for alternative investments such as bitcoin - and the publicity the halving event will draw to the market - it could have an enormous positive impact.
Some analysts are thinking it could test the 5 digit mark before halving, I for one am going to sit tight on the side lines, and see what happens…
I think we are set for a small pullback before a run up. It’s almost reminding me of the pot stocks prior to Canadian legalization where everyone including myself just thought after legalized officially stocks would shoot through the roof but instead pulled back. Anticipation is the key building in markets from what I see - then the actual facts have duller results, but there is reason to believe that post may 2020 halving - I’m giving about a 6 week timeframe we could see a HUGE run up, especially if this Ronie thing doesn’t improve and people are scared to put their money in the stock market they will be looking for alternative things. The limiting supply will also play into peoples mindsets wanting to get into the crypto space.
Well see within the next couple weeks - I believe there is no set day to know when the halving even will happen but it will be within the next couple weeks here.
I’m not a financial advisor in fact I recommend NOT investing unless you can afford to loose your money - I would talk to a Financial Advisor if you have one or someone else not just take my advice for getting into the crypto game. That’s just my disclaimer.
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