Greetings Crypto Enthusiasts,
With all the talk of Bitcoin halving coming up, I thought I would post an article to explain what this is and what impact this should have on the market for those who aren’t traders, or who don’t understand market lingo, or are just new to this stuff.
What is Bitcoin halving? Bitcoin halving is when the rewards given to miners for mining is reduced by 50%. This happens every 4 years. The current rate will be reduced from 12.5 to 6.25. What this means is that the amount of Bitcoins that are introduced into circulation is reduced by half (50%).
At the time of this writing, it is May 7th. The Bitcoin halving is supposed to occur around 4 days and some hours from now.
(Source: Bitcoinsensus.com)
There have been two previous Bitcoin halvings, one in 2012, and another in 2016. If the market follows the historical trends, people can position themselves to enjoy a fantastic upswing in the price of Bitcoin.
Let’s take a look at the 2012 halving.
(Source: Twitter @rektcapital)
This chart doesn’t appear to be very exciting but the trend that emerges as the result of the Bitcoin halving event is present that takes more visible form in the future. What does this chart tell us though?
Price of Bitcoin drops immediately after the halving. In this particular halving the fall in BTC price began before the halving. Let’s compare this with the 2016 chart and see what’s the same.
(Source: Twitter @rektcapital)
In this chart we can see the pattern of this trend much more clearly. Immediately after the halving the price of Bitcoin falls. The bottom of this fall is the start of a long upswing in the price of Bitcoin.
A closer look.
(Source: Twitter @rektcapital)
So where does that put us today?
(Source: CoinMarketCap)
To me it seems this is the run up in price prior to the Bitcoin halving.
(Source: Twitter @marco93104155)
After the halving I’m going to wait for the fall in the price of Bitcoin and I’m going to buy in heavy before the next upswing.
If any of the photos are difficult to view as posted feel free to download them, I uploaded full size images.
-Kush Freeman
Congratulations @kushfreeman! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :
You can view your badges on your board and compare to others on the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPDo not miss the last post from @hivebuzz:
Vote for us as a witness to get one more badge and upvotes from us with more power!
You proposal will be right if things goes as planned. Now i think everything crypto cannot be predicted with certainty
I'm hoping for a serious fall to the $4500 level to give me a decent buying attempt.