ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

The “Bitcoin Halvening” Will Send the Price of Bitcoin to the Moon

Updated on May 15, 2019
Tommy Limpitlaw profile image

I have been researching cryptocurrencies for over 2 years, and I would love everyone to know the possibilities this emerging tech brings us.

Bitcoin Halvening
Bitcoin Halvening | Source

A Rare Event Indeed

There’s a rare event that takes place in the Bitcoin eco-system that on both occasions in the past has seen major market growth. Every four years what is commonly known as the “Bitcoin halvening” takes place. The halvening is a 50 per cent cut (halving) in the minting of the finite cryptocurrency, and it is due to take place in May 2020.

In previous halvenings you could have made more than an astonishing 11,000% if you had invested before it happened in 2012. The 2016 event would have netted you more than 7000% profit if you had positioned yourself in time.

You see, there can never be more than 21 million bitcoins. The supply of Bitcoin is coded and because of its decentralised, immutable nature we know exactly how many there are now and how many there will be at any stage in the future.

Every 10 minutes there are 12.5 bitcoins minted and rewarded to miners who use their powerful computing power to compete against each other in hope of working out the complex maths behind the cryptographic algorithm that form the Bitcoin blockchain.

Bitcoin | Source

Investing Early Is Key

From May 2020, the amount minted will drop from 12.5 to 6.25 every 10 minutes, and the halvening event will keep occurring every four years until the very last bit of bitcoin is minted. And the best thing is: If past trends are anything to go by, you could a huge profit.

However, waiting until the halvening takes place isn’t the best of strategies as past trends have confirmed. Although there has been massive price increase after each cut in the issuance of Bitcoin, getting in about now is probably the best timing. In past halvenings, bull trends started slowly but surely about 15 months prior to the event.

This year has been no exception. In fact, after the lows of about $3400 on February 8th, Bitcoin has been on a steady climb (for cryptocurrency market) and has just passed $8000 as of May 14th and everything is pointing towards a repeat of past trends this coming year.

Now I’m not saying you should rush out to buy Bitcoin. It has been very bullish of late and it might go back down (I could be wrong about that), but I do believe it will, in the next 2 years, see some incredible rises.

How High Can Bitcoin's Price Actually Reach?

People might think, Bitcoin can’t keep rising. Surely $20,000 was way too much for a virtual currency? How much more can it grow? Are two questions I’m asked a lot. Well, let me tell you: Even when its market cap topped out at just under $20,000 per Bitcoin in December 2017, its market cap was tiny compared to other assets.

You see, Bitcoin is a deflationary currency. There can only ever be 21 million. There are now about 17 million bitcoins and the market cap is the full amount divided by however many there are minted. So when Bitcoin was at $20k, its market cap was about $325 billion.

Bitcoin has gone through a few bubbles and will continue to do so
Bitcoin has gone through a few bubbles and will continue to do so | Source

If the creator of Bitcoin, Satoshi Nakamoto, had programmed it to be 21 billion instead, the price when its market cap was $325 billion would have been 1000x less than $20,000, which works out at a measly $20. Now that price wouldn’t put anybody off, I’m sure. So, really, the price per coin isn’t really a good indicator for value. Just now that Bitcoin’s market cap has a lot of room to grow.

Many people compare Bitcoin to gold. Virtual gold, it’s called by some, and like gold it has become a store of value, for now. If Bitcoin is like gold, its market cap is about 7000% less than gold’s. Some people might scoff and ask how it can be compared to gold. Gold is “real”; it’s been about for millennia, etc.

Of course this is true, but Bitcoin is like gold and in some ways it is much better. How much gold can you carry around the world? It gets quite heavy after a while, and customs will stop you and take it off you. With Bitcoin, you can take it anywhere you like.

How much does it cost a government to store gold and send gold to another government? A lot of time, security and money, for sure. With Bitcoin’s store of value, governments will be able to transfer that value they were going to send in gold, in Bitcoin instead. And it will take minutes, not months. That is so valuable in itself it’s difficult to quantify.

Institutions Love The Concept of Bitcoin

Nothing like Bitcoin has ever been created before. Nobody, not even the banking institutions has known how to deal with it, but many people and the banking world are coming round to it, and once there are regulations in place, I believe the institutions will start to try it out. Institutional money is in the multi trillions. Imagine if they invest just 5% of their portfolios in Bitcoin. I’ll let you do the maths my calculator doesn’t have that many zeroes.

All the big institutions are akready getting into the cryptocurrency space and building infrastructure and services for the future of the new asset. Intercontinental Exchange (ICE), who own Nasdaq among other major stock and commodity exchanges, are about to launch their own cryptocurrency exchange. Bakkt will handle cryptocurrency exchanges and also futures contract settled in Bitcoin. This will be a huge event for the Bitcoin market, because the futures contracts for Bitcoin that we have now are settled in USD. So, any futures settled in Bitcoin means those bitcoins will have to be taken off the market, which will result in more buying pressure on Bitcoin and ultimately a higher price.

Other financial giants, such as TD Ameritrade, JPMorgan, and Goldman Sachs to name just a few are spending millions of dollars, positioning themselves to benefit from the cryptocurrency boom that lies ahead. In fact, Goldman Sachs is behind the $400 million acquisition of Poloniex cryptocurrency exchange. Fidelity is about to launch their own cryptocurrency services for their customers. They will offer custody solution and it is this that has held big money entering the space.

Crypto is a volatile market
Crypto is a volatile market | Source

Institutions need a custodian to rid the dangers of handling large amounts of assets. And at the moment, handling Bitcoin is tricky. One wrong letter in the address you’re sending it to and the Bitcoin has gone for good. So, Fidelity will offer services like that to institutions and its 30 million customers. They will take the danger of handling Bitcoin and cryptocurrencies away from the buyer, which is necessary for most institutions and people.

It’s all perfect timing. All the innovation in many top cryptocurrencies is impossible to put into one blog, but there is so much going on with some of the brightest minds on the planet. Institutional infrastructure being built to handle to swathe of new customers, and the best thing is the financial institutions themselves wanting to get in. Their FOMO will start the next bullish run and I believe that will go way beyond the next halvening.

We are 12 months away from that rare event, but I believe the time to invest is around now. If you choose to invest, don’t invest more than might keep you awake at night. The Bitcoin and Cryptocurrency market is very volatile. It’s a young and minute market compared to other traditional markets, so the price swings are much more animated than what investors are used to, so only invest a bit, and be patient. Good luck.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)