Bitcoin Halving: Your Chance to Make a Mint?
March 21, 2020
The Bitcoin market has really seen its ups and downs since its inception in 2008. The currency’s price is much lower than a year back, causing many people to wonder whether the investment potential of the crypto coin has petered off.
Anyone in the market for long enough will know that the volatility of Bitcoin generally instigates a turn-around in popularity at some stage. All it takes is a special event or happening on a global scale to turn the tide and cause a knee jerk reaction in the market.
For this reason, many investors hold onto their coins and weather the storm. Well, that holding will surely pay off in around July this year with the Bitcoin halving looming. History has shown dramatic climbs in the currency’s value at these times, just take reference from the price surge at the last event in August 2016 as a case in point.
What is the Bitcoin Halving?
Bitcoin has a market cap of 21 million coins. Once that many coins have been mined, no more will be produced by the network. This cap was put in place in order to prevent over-inflation of the currency. Up till now, around 85% of the coins have been mined, which may lead you to think that achieving the market cap is just around the corner. The truth is – it isn’t.
Built into the framework of the network is a protocol called a ‘halving’. Every 210,000 Bitcoins mined will trigger this event. At the rate of block verification (almost every 10 minutes), halvings are set to arrive every 4 years.
When the halving takes place, the number of Bitcoins awarded to miners per block mined will be sliced in half, meaning that fewer coins will be generated for the same work rate. Effectively, Bitcoin becomes more expensive to mine and thanks to the rarity of the coins post the halving, the value of the currency generally rises considerably.
While it cannot be guaranteed that the price will surge, past experience has proven that FOMO (fear of missing out) tends to drive markets – even decentralised ones like cryptocurrency. On the other hand, the Bitcoin market has matured somewhat over the past few years, and the community may be less prone to knee-jerk buying.
While the spike may not be as large as before, there is a good chance that there will be a return on your investment within the next 4 months.
How does this make me a mint?
If you remain disinterested in Bitcoin over the next few months, your life will remain pretty much the same as it is now, but investors that are willing to risk a bit and buy the coinage at its lower price may just see their investments pay off handsomely in July.
Other Ways Bitcoin Can Pay Off
Bitcoin and cryptocurrency, on the whole, is a digital monetary system designed expressly for peer 2 peer transactions without the need of a trusted third party. The brilliance of the blockchain-based design has caught the eye of many Bitcoin online casinos, who offer you the chance of using your BTC for gambling entertainment purposes.
While Bitcoin gambling is chance related, it has paid off for many, as a variety of top casino games offer the chances to win decent jackpots – all paid back to you in Bitcoin.
If risk is your game, why not try both investing your coinage and put aside some for a bit of fun at the same time? Who knows, the casino world may even reward you better than the anticipated price surge will!