We are now only 14 months away from Bitcoin's next halving
Bitcoin is likely to start moving up again shortly.
We are now only 14 months away from bitcoin's next block reward halving event.
It is projected to happen in May of 2020.
This is where the block rewards will be cut in half.
They will drop from 12.5 currently to 6.25.
Why is this important?
Beyond the obvious where the inflation rate will be slowing down...
This is interesting because it will make the yearly inflation rate on bitcoin LOWER than that of the USD for the first time ever.
That is when it gets really interesting as a store of value, at least in my opinion.
Not only that, but the last two times this halving event happened the price of bitcoin responded very favorably around the event.
Check out the chart:
(Source: https://twitter.com/100trillionUSD/status/1102122695683133440)
What happened the other 2 times around the halving event?
As you can see on the chart above, price bottomed well in advance and started turning up prior to the event.
In 2011, prices started turning up around 12 months prior to the event.
In 2015, prices started turning up around 10 months prior to the event.
As I mentioned above, we are roughly 14 months away from the next halving currently.
If past two patterns repeat here, we could be only a few months away from prices starting to go up again!
Stay informed my friends.
-Doc
graph that made me go hmmmmm...
Why is that?
Halving? I want doubling; price that is 💰😁💰
If history repeats, it should triple leading up into the halving... Then go up about 10X (or more) over the next 2 years. Though we only have 2 data points to base our history on...
This will probably Bitcoin’s biggest test to date, especially with today’s prices. If the price doesn’t rise and miners having a fixed cost (more or less), it will be seen if the price goes up or dries up forcing miners to decide if it is worth mining btc... I’m hodling or (banking on it )til then one way or another
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some miners has near-zero cost so someone will continue no matter what
0 or near $0 cost? Where do I sign? Miners (servers) are expensive, then there is tent space, electrical costs and maintenance costs (parts and labor).
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You just need to operate in certain regions of China.
Will be interesting to see how many institutions in particular will start to position themselves ahead if this, if they have not done so already as the noise of volumes in OTC markets seems promising already.
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Yep, big volumes OTC according to reports.
important information. it really helps to make investment decision
Glad it helps.
Thanks for this very informative post.the STEEM community values such posts.
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You got it.
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Thanks.
Yup and it's going to be a big one 6 coins less per block adds up to alot
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First time bitcoin's inflation will be lower than that of the USD per year.
Problem is 14 months feels like an eternity from now :-D!
Well, prices started moving up 12 and 10 months prior in both previous halving events. So, we likely won't have to wait 14 months in order for prices to start going up again.
if that cycle repeats that's going to be epic