Bitcoin and Next Halving Event: How to Take Advantage?

Bitcoin’s halving is when the price of Bitcoin fluctuates like a pendulum on rocket fuel because of the decreasing rate of supply. Historically, this cryptocurrency’s price has gone up exponentially after every halving event. After miners have validated 210,000 blocks, around every four years, the block reward for miners is cut by half to make the ecosystem sustainable.

Bitcoin and the Next Halving

It makes this cryptocurrency deflationary, and its mechanism adjusts the mining difficulty to ensure miners generate new coins at a predetermined, consistent rate. Since the mining rewards get sliced in half, the supply decreases, demand increases, and price shoots up like a bamboo stalk on magic fertilizer. At times like these, people flock to and similar platforms to ride the wave to the top.

Although there is a probability that the price might not go, many crypto enthusiasts believe in the power of this phenomenon and its bull run-inducing effects. Hence, the desire to accumulate more BTC coins before the next halving event. Other reasons include the following.

Bitcoin Could become the World’s Reserve Currency

Bitcoin’s growing popularity and acceptance have made many believe it may become the world’s reserve currency. Some countries, including the Central African Republic and El Salvador, have already embraced Bitcoin as a legal tender. Millionaires and corporations are gobbling up this cryptocurrency to hedge against inflation. That’s because Bitcoin has shown the ability to maintain high value during harsh economic times, such as the COVID-19 pandemic.

Many Bitcoin proponents argue that cryptocurrency is an ideal store of value. They further predict this cryptocurrency will eventually unseat the US dollar, becoming the world’s reserve currency. Hal Finney, the Crypto Pioneer, has echoed similar sentiments. Hence, more people want to acquire Bitcoin because they believe its value will increase once it becomes the world’s reserve currency.

Bitcoin’s Finite Supply

Miners can only generate 21 million Bitcoins, according to its protocol. The total supply for other cryptocurrencies is larger. For instance, SHIBA INU and DOGE have unlimited overall supplies. Bitcoin’s finite supply makes it a scarce asset, and its value increases as miners near the limit. 

On that same note, Fiat currencies have an infinite supply. This is what led to the financial crisis of 2008 and the overflow into the world after the event. According to experts, acquiring one Bitcoin will be more challenging after the 2024 halving event. Thus, most people will only have Satoshis rather than Bitcoins. Hence, right now is the best time to invest in Bitcoin.

People Are Making Good Money with Bitcoin

You’ve probably heard or read stories of individuals who have made life-changing money with Bitcoin. Several billionaires and millionaires are wealthy today because they took their chances to invest in Bitcoin over a decade ago, in 2009 and 2010. 

Many people are wealthy today, not because they are more hardworking but because they bought and held Bitcoins in their crypto wallets at the right time. At the same time, some people regret not buying Bitcoin early or acquiring and selling it too early. For example, the guy who sold his Bitcoins for Pizza. Naturally,  more people want to buy Bitcoin and sell it later to make more money.

Bitcoin’s Impressive Performance

Bitcoin has performed better than most conventional assets. It exhibited a phenomenal performance, especially during the COVID-19 pandemic. Despite the misinformation and fear-mongering surrounding this cryptocurrency, the fact is that Bitcoin is among the best-performing assets. 

Many experts predict that Bitcoin’s popularity and value will increase as the next halving event draws near. It’s why they are accumulating Bitcoin before the halving. 

The Bottom Line

More people want to acquire Bitcoin before the next halving event. While several reasons are responsible for this trend, most people want to own Bitcoin because they believe its value will keep increasing. Thus, people acquiring the cryptocurrency now stand a higher chance of reaping significant returns when they sell their holdings. Moreover, buying Bitcoin after the next halving event will cost more than now. So, why wait?

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