2024 is the year of Bitcoin’s halving. This is often seen as the starting signal for the next bull run. But is it a good time to buy Bitcoin? It’s time to chart your course!
What is Bitcoin Halving?
Satoshi Nakamoto was looking for a way to curb the inflation of his Bitcoins and increase their scarcity. The halving of Bitcoin is ideal for this.
Halving occurs every four years on block 210,000 of the Bitcoin blockchain. This is recorded in the Bitcoin code, so that everyone always knows how many new Bitcoins will be added and when. It is strange that the transparency of a monetary system has not yet been normalized.
The first Bitcoin halving took place on November 28, 2012, when the reward for miners was halved, from 50 to 25 BTC per block. The second halving took place on July 25, 2016, when the reward was halved from 25 to 12.5 BTC. The third halving took place on May 11, 2020, when the reward was halved from 12.5 to 6.25 BTC per block.
And the next one is scheduled for April this year.
The chart below shows prices during previous halvings.
What if you invested $1,000 during the halving?
On November 28, 2012, Bitcoin was trading at $13. If you had bought BTC for $1,000 at the time, you would be the lucky owner of 77 Bitcoins. At current rates, that would be worth $3.49 million. Wow.
Four years later, on July 25, 2016, the price hit $650. At the time, Bitcoin was gearing up for a mega bull run. For $1,000 you would have gotten 1,538 BTC, which is now worth almost $70,000. It’s still a wonderful return on investment.
Shortly after the world went into corona lockdown, another Bitcoin halving took place. On May 11, 2020, the price of Bitcoin was $8,700. For $1,000 you got ten 0.115 BTC. That’s worth $5,211 at today’s exchange rate. This still means your investment has increased fivefold.
So halving is certainly a good time to invest if you think about the long term. You don’t have to sell your BTC in a few years? So Bitcoin’s halving could be a great buying opportunity.
Source: BTC Direct
Source link
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
