The year 2020 came as several tokens halving countdown is on the process, especially the 3rd halving of Bitcoins is upcoming. As history told us, the consensus that expects the market to be bullish is widely accepted.
In addition, Bitcoin, called “Digital Gold”, is more and more acceptable as the safe-haven asset, which also pushes the market to boost. Besides, BCH, BSV, ETC, Dash, etc. also attract the attention of the market. What is more, several altcoins are also facing halving. So, the year 2020 is also called the year of “Crypto Halving”.
What is “Bitcoin Halving”?
Specifically, the Bitcoin protocol cuts the bitcoin block reward in half every 4 years. Every time a Bitcoin halving occurs, miners begin receiving 50% fewer BTC for verifying transactions. Until now, Bitcoins have been halved twice, which respectively happen in November 2012 and July 2016. The 3rd halving is expected to in 2019.05.13, and the reward for miners will reduce from 12.5 to 6.25.
The reward reduction means that the circulation of Bitcoins will take a longer period. However, it also means that new bitcoins from mining will be few and few. Moreover, the difficulty of mining enhancing makes Bitcoins rarer, which makes the value of Bitcoins much higher. No one doubts that it does benefit the bullish market.
Will the Bitcoin Halving catalyze the Bull market?
To investors, the thing most matters them is the Bitcoin price. After the last 2 halvings happened, the bitcoin price surged soon. Bitcoin Halving does stimulate the bitcoin price to surge. We can see that Bitcoin Halving is the most important catalyst for the bull market. Thus, investors hold a positive view of the upcoming halving in 2020.
In fact, the period between the year 2020 came and now, the tokens of which halving is upcoming including BSV, BCH, ETC, DASH all boomed.
Statistically, from 2019.12.18 to the highest point since the year 2020 came, tokens which increase the most are as follow:
BSV, $76.5 to $455.55, the change reached nearly 6 times.
ETC, $3.36 to $13.23, the change reached nearly 4 times.
DASH, $40.01 to $150.84, the change reached nearly 3 times.
BCH, $169.7 to $448.4, the change reached nearly 3 times.
BTC, $6433 to $10190.13, the change reached nearly 50%.
From the data above, we can see that the expectation of the halving really can stimulate the market to boost, which can make investors earn from it.
So, here’s a question: Will you buy Bitcoins?
Bitcoin, which owns the most recognition in the cryptocurrency industry, theoretically doubles the price after halving. Also, the upgrade of the miner machine is able to double the price due to it increases the budget. So, after the halving, the bitcoin price is likely to increase by 4 times. Takes the bitcoin price $10,000 as the basis, it may rise to a level that more than $40,000.
If you buy Bitcoins on the spot trading market and hold it, when the bitcoin price rises to $40,000, you would earn a 3-times payoff. However, if you buy Bitcoin ETF launched by BitOffer, the payoff would be 9 times to 17 times due to its automatic positions adjustment mechanism and its compound calculation, which means that its ROI would be much higher than that of Bitcoins on the spot trading market.
To the investors who prefer the long-term investment, it cannot be denied that Bitcoin ETF is the best investment. The patterns of buying Bitcoins on the spot trading market and investing in Bitcoin ETF are the same. They are all supported to buy or sell, but the profit of investing in Bitcoin ETF is at least 3 times higher than buying Bitcoins on the spot trading market. Overall, investing in Bitcoin ETF is much better than buying Bitcoins on the spot trading market.