As the Bitcoin Halving event approaches, many say that Bitcoin’s price prediction is around $150,000 next. The sentiment that it’s “too late to buy crypto after Bitcoin halving” is shared by both novices and experienced traders. New York, NY, April 12, 2024 — It’s impossible to get online without hearing about Bitcoin at least once, especially with the event coming up. Cryptocurrencies have captured everyone’s attention – traders, non-traders, investors, non-believers, and more. This global phenomenon has only increased over the years, with headlines in the news about price surges making it a hot topic among finance people everywhere. However, many wonder if the mythical boat to riches in the form of crypto has passed them by. Today, we at aim to answer the question – is it too late to buy crypto and Bitcoin?
The short answer is no! In this article, Toobit experts will break down and explain several reasons why this isn’t the case and why there is always a future in cryptocurrency. The Illusion Of FOMO It’s normal to feel like you’ve missed out, especially when something is a million dollar investment return. Bitcoin made a name as the world’s first cryptocurrency back in 2009. Many non-crypto users (or even non-Bitcoin traders) have a misconception that assumes because Bitcoin is popular and doing well now (currently at $70,000 per piece), it must be too late to bother with it at all. This leads to FOMO (fear of missing out), especially when faced with handsome profit returns. The mistake most users make is panic-buying crypto after hearing news, leading to infamous FOMO regret. Trading is a big deal – don’t waste money that could potentially be used for future gains! It’s very important to remember that investing isn’t a decision made on emotional impulse, but rather a steady and calculated move.
Volatility, Bear Markets, & The Waiting Game Fact: The cryptocurrency market is notoriously volatile. Don’t let that scare you from dipping your toes in though! Bitcoin’s growth is nothing short of remarkable, facing significant downturns for most of its years before eventually skyrocketing. However, this is the reality of investing in crypto – you are most likely going to face a lot of downs before any upturns. Investing in cryptocurrency requires a strong stomach and long-term perspective. No one got rich overnight from crypto…unless they were incredibly lucky. It’s all about timing, and for most crypto investors, we’re all playing the waiting game. Be patient and think about how long it took Bitcoin to get where it is today. Try to adopt a more disciplined approach towards trading whenever you start to feel the itch to sell. Last but not least, always be prepared for fluctuations! The crypto seas can be rough, but it’s one helluva view when you make it to the other side of the Bitcoin rainbow.
Now, let’s address the question of whether it’s too late to buy crypto and Bitcoin specifically. Bitcoin, often dubbed digital gold by financial experts, has established itself as a store of value and a hedge against economic uncertainty. 21 million coins are currently out in the world, however that number is reducing day by day with miners working hard to claim block rewards while they still can. Its finite supply and decentralized nature make it an attractive asset for investors seeking alternatives to traditional fiat currencies. Due to its nature of being scarce, many traders think it’s too late to get on the Bitcoin boat, as it has long left the pier. While the price of Bitcoin has reached unprecedented highs, many experts believe its potential for further growth remains substantial, especially as adoption continues to increase. So with all this acceptance and positive news about Bitcoin, why are the non-believers so adamant that it’s all over?
A large reason for this belief is none other than the Bitcoin halving event. Whenever the Bitcoin halving occurs, the price movements of Bitcoin become more desirable–at a certain cost. As of now, April 2024, users are about to witness another Bitcoin halving occur. With the last Bitcoin halving occurring in May 2020, the block height is about to drop yet again very soon. Which now begs the question – how does the Bitcoin halving work? Understanding The Bitcoin Halving Scheduled to occur approximately once every 4 years, the Bitcoin halving event is one of the biggest things to happen in the cryptocurrency world. But what exactly is the Bitcoin halving, and why does it matter? At its core, the Bitcoin halving is a built-in feature of the cryptocurrency’s protocol that occurs roughly every 210,000 blocks. This event involves reducing the reward miners receive for validating transactions by half. In simpler terms, it means that the rate at which new Bitcoins are created is cut in half.
When Was The Last Bitcoin Halving? To put it into perspective, since May 2020 (which was the previous Bitcoin halving event) the block rewards have been halved to 6.25 Bitcoins per block. This means that by a date in April 2024, Bitcoin would have reached 210,000 blocks again, thus halving the 6.25 Bitcoins per block into 3.125 Bitcoins per block as the block reward. To know when Bitcoin will halve again, its best to have a Bitcoin halving countdown clock so that you can always be prepared for the next one! As for the exact date, it isn’t completely accurate as the rate Bitcoins are mined may differ depending on the source of data. However, you can use any Bitcoin halving countdown clocks online as a reference for an estimated date.
Why Is The Bitcoin Halving An Important Event? You might wonder why Bitcoin even bothers to employ such an exhausting mechanism. Well, there are several reasons but the best way to understand this is to know that it’s the best way to control the supply of new Bitcoins entering circulation. Unlike fiat currency, which is known to suffer inflation thanks to central banks printing more and more money to circulate it, Bitcoin maintains its scarcity by nature. In face through the Bitcoin halving, along with halving the rewards gained from block rewards, the rate of new Bitcoin issuance is gradually reducing over time. Bitcoin’s creators sought to mimic the scarcity of precious metals like gold, thereby potentially increasing its value over time. Therefore, with every Bitcoin halving, the price movements of Bitcoin only increase gradually. This is the biggest reason why it is far more valuable than fiat currency, and why Bitcoin has such fantastic value.
What To Know Before Investing in Crypto and Bitcoin The Bitcoin halving event has significant implications for both Bitcoin investors and enthusiasts alike. Here are a few key points to consider, especially if you are new to trading and cryptocurrency:
1. Supply and Demand Dynamics: With the reduction in the supply of newly minted Bitcoins, the event often leads to increased scarcity. Basic economics dictates that when the supply of an asset decreases while demand remains constant or increases, its price tends to rise. Therefore, some investors anticipate that the Bitcoin halving event will drive up the price of Bitcoin.
2. Historical Performance: Previous Bitcoin halving events have been associated with significant price movements for Bitcoin. However, it’s essential to note that while we may learn from it, past performance is not indicative of future results. Historical trends can still provide valuable insights, so we should not completely push it aside, but always keep in mind that they do not guarantee similar outcomes in the future.
3. Market Sentiment: The lead-up to the halving typically sparks heightened speculation and volatility in the cryptocurrency market. Traders and investors are advised to closely monitor Bitcoin price movements and market sentiment, and attempt to capitalize on potential opportunities, or alternatively mitigate risks associated with any sudden increased volatility.
As Bitcoin approaches its next halving, the crypto community eagerly anticipates its potential impact on the market. While opinions vary on the event’s precise implications, one thing remains clear – the Bitcoin halving is only the beginning to understanding its unique value proposition and its status as a digital store of value and hedge.