Why Is Bitcoin Already 30% Up In 2020!?
There’s a number of reasons…
The Coronavirus…
The continued widespread acceptance — Deutsche Bank says ‘digital currencies could be mainstream in 2 years’!
The ongoing downfall of our traditional system…
We want to share with you another angle that you might not be too familiar with.
The 2020 Bitcoin halving…
What does it mean?
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The impending block reward halving in May this year is gaining a lot of attention…
And we’ve been inundated with questions asking exactly what it means and why it’s so anticipated…
We cover this in detail at our VIP Immersion and our newly released online Masterclass, but HERE are the essentials.
The bottom line…
Halving events tend to encourage investors and miners to hold onto their coins for longer in anticipation of higher prices and by halving the overall daily supply, the sell pressure on the market is reduced.
In contrast to GOLD, we always know how many Bitcoins there will be in existence.
We know that 1800 are created daily until the next halving — with GOLD we don’t.
As of today, 85% of that 21 million BITCOIN is already mined…
We’re always finding more GOLD….
The historical data indicates that block reward cuts often precede tremendous growth in the long-term value of the asset. This is WHY people are so excited!
Look what happened last time!!
BTC last halved in 2016 and in the space of a year, we saw a rise from $600USD to a high of $20,000USD. As well, in the lead up the Litecoin halving, LTC jumped a whopping 500+%.
Imagine making those kind of returns!
This is why historians are calling this the biggest BOOM of all time!
So, will it happen again?
There are no guarantees history will repeat but the data from the last two halvings is compelling, even with such a young asset class.
At our VIP Immersion and Masterclass series we share insider tips and tricks with that will have you POSITIONED & PRIMED to take full advantage of the next halving.
What is the “halving?”
It has a few names but the most common is, the “halving”
“Block Reward Halving” is the technical term, but it’s not often used outside the industry, so don’t get too hung up on it…
Bitcoin is just over ten years old and already we’ve seen two of these events…2020 will be the third.
The process cannot be changed and occurs every 210,000 blocks mined — roughly, every four years. This is all based on code, not human manipulation like our traditional markets.
Now, the first question you might be asking is, how can a currency halve?”
For starters, Bitcoin itself doesn’t halve — rather, every four years the reward for miners is cut in half, and therefore, reduces the supply to market.
“What do you mean the supply gets cut in half? Does it just disappear?”
No…Bitcoin just gets harder to mine.
Over 86% of all Bitcoins have been mined and it will only get more difficult with each halving.
There’s not much left….which is why people are jumping in. They don’t want to miss out on the opportunity of a life time!
Think of the whole process as slowly turning off a faucet.
At the back end, miners solve blocks for a reward (Bitcoin), and this is how new Bitcoins are minted. The current reward is set at 12.5 BTC per block and after the halving, the reward drops to 6.25 per block…
This drop also reduces the inflation rate from 3.8% to 1.8%, which flies in the face of our current financial system — giving Bitcoin a unique advantage over fiat currencies.
IMPORTANT: Not all cryptos have halvings and some are inflationary by design. Make sure to check this when doing your research!
“Wait. Go back. What is a block?”
A block is a file of transactions and data — the lifeblood of the blockchain!
If you want to go deeper into the data, watch the countdown in real-time here at https://www.bitcoinblockhalf.com/
Total supply…
The total Bitcoin supply stays at 21 million coins. THIS DOES NOT CHANGE!
Of that figure, we know that nearly a third of the 21m are lost or missing…
Due to people mismanaging their access. We understand the importance of safety and go into detail on this at the VIP Immersions and in our online Masterclass series.
Again, the halving does not influence this in any way.
In this context, halving’s are merely a mechanism to shrink the BTC supply until the hard cap of 21 million coins is reached. There are no more after this.
I’m sure your spidey-senses of supply and demand are tingling right about now…
We discuss this in depth with our VIP clients and analyse how investors leverage this mechanic to make life changing wealth
The elevator pitch…
Using Bitcoin as an example, there are only 21 million BTC that will ever be created and distributed to the “miners” over time — miners are the people who run the software.
In the beginning, 50 Bitcoin were given out to miners every ten minutes.
After four years that reward was cut in half from 50 down to 25, and so on and so forth, until May 2020 when the reward falls to 6.25.
This event happens every 4 years and it’s all based on Bitcoin’s mathematical code.
Are you ready to take full control of your financial destiny in 2020?
By Sam MacDonald
Content Director
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