The Bitcoin halving event is coming fast. Lets take a quick look at what this means and what is to be expected moving forward.
What is the Bitcoin halving event?
In essence a Bitcoin halving event is when the rewards earned from mining bitcoin gets slashes in half meaning the rewards gained will be half.
When a Bitcoin halving event happens usually the price crashes just before this as miners sell and after the halving the bitcoin price dramatically increase to the up side.
Miners will start to flood the market with older “Antminers” used to mine bitcoin as their rewards are now split in half.
Thus generating or Mining a Bitcoin is not also significantly more difficult meaning miners need to get better hardware and getting bitcoin becomes more and more impossible for many people.
Furthermore the upside of a Bitcoin halving is that the value of Bitcoin increases substantially with each halving taking place.
The Bitcoin halving happens every ~4 or so years.
Is Bitcoin going to recover from the flash crash
Given historical trends over the past bitcoin halving its safe to speculate that it will not only recover but also massively increase in value over a span of at least 8 to 10 months.
In recent years, we have seen bitcoin going from mid $20,000 to upwards of $70,000 is a span of just under a year after the halving takes place.
Is it the right time to Buy Bitcoin ?
While we do not offer financial advice there is a sentiment that you might want to scoop up some before the halving takes place.
Furthermore look at the historical data, before making the decision to acquire Bitcoin or any other cryptocurrency for that matter.
In my honest have a look at Crypto, Bitcoin Guide: Secure Your Digital Wealth for a more detailed deep dive.
What about AltCoins like Cardano and Solana
Usually when we look back over the years you will see a lot of new Altcoins getting started just before and even after the Bitcoin halving takes place.
While its much more riskier to invest into new Altcoins the rewards can sometimes be surprising and mind blowing however, you need to account for risk.
Look at well established Altcoins such as Cardano (ADA), Etherium (ETH) and Solana (SOL) as they are and have been around for a few cycles now.
Meme coins are also a thing, while most of them are extremely risky it can pay off if you catch the wave early. A lot of research and a little luck comes into play here.
Meme Coins are a gamble at best. Like playing the lottery so take it with a grain of salt. Therefore make sure you are well versed in crypto before throwing money at these offerings.
Have a look at this Master Class in Making Huge Gains In Crypto to get you on tack fast.
Is is too late to get into Cryptocurrency?
No, it is not too late. Many people might feel like they have missed the boat, missed bitcoin in 2007 and therefore its over however crypto is still very new to most people.
Furthermore there are new technologies and better applications created almost monthly on different blockchains that is not just Bitcoin.
Its important to do do as much research before you jump in, learn the tokens on offer and their applications and scalability.
Take an Online Course of you want to fast track your knowledge on Crypto. But get in as soon as you can.
Crypto market volatility overall before a halving
Market Volatility is to be expected just before a halving the market always seems to pull back before it pops and goes parabolic.
Real world events also plays a major role in market influence where wars and hardship impacts the price significantly however where most people panic during a bear market this is a good time to buy in, see it as a sale on crypto.
The crypto market comes is waves. Expect a sure in not only Bitcoin but also other tokens and alt coins right after the halving takes place. This is known as a Bull Run.
Then, you get the bearish market or the Crypto Winter where everything goes down month over month. Its the cool down phase where everything needs to consolidate.
Usually 1 year after a bitcoin halving event and after the bull run when everything was moving parabolically to the up side thing will take a turn for the worse…
Finally you get the accumulation phase, where nothing and no coins make much of a move. Trading sideways this is a good time to buy in slowly and steadily.
Importantly note that the accumulation phase can last for over 3 years in some cases if we look at historical data.
Key Take Away
While Bitcoin and Cryptocurrency in general is a very rocky road, it can be life changing and a fast track to financial freedom however caution should be taken.
The Crypto space is dangerous and unpredictable. My advice for anyone looking to start down this road is to learn as much as you can about Crypto before you jump in.
Cryptocurrency is a huge risk / reward ecosystem and you need to make sure you understand this. Do proper risk management. Try not to get too emotional when the markets go negative…
You might end up looking all your gains if you get too greedy. that said with proper education you too can become a crypto inverter and actually profit hugely from this market.
Knowledge is key. Here are some resources you might want to take a look at…
Our article on Crypto, Bitcoin Guide: Secure Your Digital Wealth
Or A Course To Teach You About Crypto and an Ebook guide on Follow The Right Strategies To Profit With Bitcoin!
