Bitcoin Investors Begin Halving Preparations

Most people who are interested in cryptocurrency know very well that a fundamental aspect of Bitcoin is that every four years it cuts the rewards given to miners in half to show the market some kind of inadequacy and theoretically reduce bloat.. The economy behind this feature is based on the Austrian economy, a very fundamental one that motivated the birth of Bitcoin in the first place.

Half Year 2020

The next halving will occur in 2020, but Coindesk’s Next year, investors will begin to change their behavior towards preparation.. Looking at the last two halving events in 2012 and 2016, there was a rapid change in mining activities that lasted for about a year.. While these mining activities were carried out, the price of Bitcoin increased significantly during the leading year, and then a “brutal parabolic move” occurred during the few weeks following the halving.

The truth is that the Bitcoin model is fundamentally The Austrian economy that creates. One of the main criticisms, mostly from non-cryptocurrency circles, focuses on these halving policies.. However, investors with two years of experience who know what the halving will do to the price of Bitcoin will likely want to be prepared to take advantage of this.

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What Halvings Tell Us

Looking at the history of Bitcoin, there has been a long-term rally for 12 months before the halving and this rally ends on the day of the halving.. From November 2011 to the date of the halving, the price of Bitcoin has increased by 300%, and a similar bull run in 2015, when the second halving occurred, begins in July, and there is a 180% increase in value by the time the halving ends.. On the one hand, such speculation defeats the purpose behind the halving, on the other hand, it creates an obstacle to the maturation of Bitcoin as a market that can carry itself further.

The Market Prepares for the Third Halving

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There is about a year and a half left to the third halving, and the time for investors to watch this run is approaching.. If the past two halvings are a clue, then the run is getting more and more lively as more investors join and mature the market.. However, speculators and Bitcoin enthusiasts alike will want to start preparing for this halving now, as Bitcoin is built on a core market of evolving supply and demand shifts.