Hope you guys and gals have had a good weekend.
Now as you might know tomorrow is a big day for Bitcoin.
It's the third Bitcoin halving on May 12 and it's historical.
This is not the first time an event called 'halving' has happened
on the Bitcoin network. The first halving took place in November 2012;
the second halving was in July 2016. Both events gave a great push
to the BTC price and started a huge bullrun.
What Is Bitcoin Halving?
'Halving' means that the Bitcoin mining reward for one block will
be reduced in half. The third halving is expected tomorrow May 12, 2020.
Like the previous ones, it will halve the mining reward for the calculated
Bitcoin block. Originally, the reward for the calculated block was 50 BTC.
Since then, the reward has been reduced to 25 in 2012 and 12.5 BTC in 2016 — and is about to be reduced to 6.75 BTC tomorrow.
Why Is Halving Significant?
Bitcoin halving is a very rare event and as such generates a lot of
excitement in crypto circles. This is at the very core of the cryptocurrency's economic model, because it ensures that coins will be issued at a steady pace, following a predictable rate.
This controlled rate of monetary inflation is one of the main differences
between most cryptocurrencies and traditional fiat currencies. Any fiat
currency basically has an infinite supply where a national central bank or
authority can print money on demand, as much as they want. You are actually seeing it right now in quite a few countries.
There will only ever be 32 Bitcoin halving events. Once the 32nd halving is completed, there will be no more new Bitcoins created, as its maximum supply of 21 million will have been reached. This should happen approximately in the year of 2140.
What Will Happen to BTC After Halving?
For one it will NOT explode and fly to-the-moon right the moment it's done.
Right after halving only 900 new Bitcoins will be entering circulation per day, a sharp decrease from the 1,800 we've had for four years.Many miners will seethe expenses associated with mining a single Bitcoin rise substantially, far beyond the average of $6,800 reported this year. This means BTC prices would have to rise if miners have any hope of breaking even.
The upcoming halving, however, differs from previous halvings in that much more people are involved in the crypto industry. New opportunities have emerged, including ones for big players to manipulate the price of Bitcoin. Among the financial instruments available to large players, there are also stock options and futures on Bitcoin.
There has also been a significant increase in people's awareness of what cryptocurrencies are. Even those who used to be far away from digital currency have learned about what is the Bitcoin network and what it is good for.
As you might notice Bitcoin has been very volatile these days before halving. The big question now is whether that “fear of missing out” remains, whether Bitcoin can bounce back, and whether crypto whales believe prices will double in the short term.
Just like both previous halving events showed, prices still might go down after halving in the short-term due to a sell-off correction. But mid-range it looks very very promising. Some even hope to see the same "to-the-moon" pattern of 10,000% increase...
Especially that the BTC has begun proving itself as a financial safe-haven asset in the middle of the world-wide crisis where even crude oil is as volatile as can be. As countries around the world print trillions of dollars in new money to save their economies, some experts believe investors will rush to Bitcoin as a hedge against money inflation. This will in turn make BTC more acknowledged, used and accepted, driving it's value thru the roof.
What Should You Do?
First off, HOLD onto your Bitcoins!
Do not sell or exchange. We strongly believe there are significant gains
for BTC holders both in the mid and long run. At this time all key indicators are bullish.
Also in the last week BTC network transaction fees have increased by about 300%.
That is why we suggest you do not do any transaction these couple of days to avoid high fees.
There are increasing signs that Bitcoin is being chosen as an alternative to fiat currencies around the world. We at Computta are happy about it as it will bring more confidence and certainly more profits to our users as BTC price goes up.
Let's see what happens and let's hope to see BTC price stabilize over $10K by the end of the year. That will mean a strong bullish trend that will lead us to that $500K or even $1M valuation ;-))
Let's roll now!
Good Luck to us all!
George and Team Computta