Read on Twitter
#Halving Day is upon us. Once every 4 years, the #bitcoin 
block reward is cut in half. Today, the subsidy will drop from 12.5 to 6.25 $BTC per block. With Bitcoin’s new inflation rate of 1.8%, it will overtake #GOLD (~2% inflation) as a more scarce form of money. https://twitter.com/adambakertrades/status/1256481485982519296
block reward is cut in half. Today, the subsidy will drop from 12.5 to 6.25 $BTC per block. With Bitcoin’s new inflation rate of 1.8%, it will overtake #GOLD (~2% inflation) as a more scarce form of money. https://twitter.com/adambakertrades/status/1256481485982519296
What does this mean?
The cost of sustaining Bitcoin’s price (~$8,700 as of now) will go from $15.66M to $7.83M.
Why is this important?
In the past, the primary sellers on the $BTC network have been miners. Now, they have a lower supply to distribute to Buyers.
The cost of sustaining Bitcoin’s price (~$8,700 as of now) will go from $15.66M to $7.83M.
Why is this important?
In the past, the primary sellers on the $BTC network have been miners. Now, they have a lower supply to distribute to Buyers.
As a result, we can conclude that it is more likely for a price increase due to a supply “shock” (the Halving).
Additionally, we can assume that price will be more stable, as the cost to maintain a certain price is now lower relative to the pre-halving era.
Additionally, we can assume that price will be more stable, as the cost to maintain a certain price is now lower relative to the pre-halving era.
Even though this event is extremely bullish for #bitcoin in today’s environment of “quantitative easing”, it is not to say that price cannot go down.
The biggest takeaway from today will be the fundamental “hardening” of BTC as a currency. In no way is this event “priced in”.
in today’s environment of “quantitative easing”, it is not to say that price cannot go down. The biggest takeaway from today will be the fundamental “hardening” of BTC as a currency. In no way is this event “priced in”.
History shows that $BTC price tends to reach ATH approximately 1-2 years after the halving event. As seen at the last halving event, it is possible for price decreases before going on to consistently make higher lows.
This is the reason that many investors have adopted the #DCA technique. Averaging into positions at different frequencies, not necessarily buying the troughs or peaks, but gaining exposure to an average rate of growth while assuming less risk.
The first step to getting into Bitcoin is learning and then jumping in head first. With DCA, the potential consequences for getting in now can be mitigated but the reward can be exponential. (Btc has an ANNUALIZED GROWTH RATE OF 359% OVER THE LAST 10 YEARS!)
You do not NEED to buy full coins. Use $BTC as a savings account that can give more than the .1% interest that any retail bank will pay. If we are right, you will gain financial independence. If we are wrong, at least you stood up for yourself against our broken monetary system.
/end.thread
