Since its inception in 2008, Bitcoin was mathematically programmed to create new bitcoin every 10 minutes. Every four years, the amount of newly-created bitcoin gets cut in half. This event is known as the “Halving” or “Halvening”. It has happened twice before, in 2012 and 2016. It will happen again in May 2020.
Because Bitcoin will have a maximum supply of 21 million, these halving events cause a gradually reducing amount of bitcoin to enter the market until the last coin is created in 2140.
Why is all this so important?
Because with less Bitcoin coming to the market on a precalculated schedule over time, if demand increases and supply is limited (and known at anytime), its value can only go up.
We also have the benefit of looking at history to see what happened durning the previous two halvings.
According to crypto expert Rekt Capital, Bitcoin’s price tends to turn bullish at least a year before a Halving event. In addition, he noted that the biggest gains came after the halving.
The first halving, in November 2012, saw bitcoin rise over 13,000% in 513 days from its pre-halving low to its market cycle peak.
During the second Halving, in July 2016, bitcoin rallied over 12,000% over 1,068 days.
Of course, a bear market occurred subsequently in each case.
Therefore, if we use past history as a guide to give us an estimate of bitcoin’s price as a result of its next Halving in May 2020, we come to a price of $385,000 – 425,000 per bitcoin at its next bull market peak, which could take two to six years.
That may seem an outrageous number, but as Rekt Capital points out, a $385,000 bitcoin price would mean that bitcoin as a whole would have higher total market cap than Gold (presently @ $7.8 trillion). That would validate Bitcoin’s often-claimed reputation as “digital gold”.
If you’ve read my previous blog post on Cryptoinfoconsolidator.com where I compared Bitcoin to Gold across several categories, you can understand that this is not some far-fetched, pie-in-the-sky delusion. There is really a solid argument for why Bitcoin could be more useful and practical than Gold as an inflation hedge, a chaos hedge, and a store of value. There are many experts who believe that Bitcoin in the future will achieve that exact status.
So there you have it- the most anticipated Crypto event of 2020.
If you believe that this is remotely possible, or that history doesn’t repeat but often rhymes, shouldn’t you make at least a small investment in Bitcoin? The odds of success are MUCH, MUCH higher than a lottery ticket!
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