Thanks to the fact that Bitcoin is as valuable as gold, thousands of people are open to joining this network and are keen on learning how Bitcoin works so that they can make a profit. There are tons of stories of how average people managed to become overnight millionaires once they started trading with Bitcoin.
There are tons of things to know about Bitcoin and the process of trading if you want to make a profit, but we decided to focus on one specific thing in this article – halving events. It is known that these events often lead to price surges and we are more than willing to explain every detail on that topic. Let’s begin.
What Are Halving Events?
Let’s start with the basics first. Halving events take place when 210,000 Bitcoins are mined. That usually takes around 4 years. The circulation of Bitcoins is cut drastically during this period. The main purpose of halving events is to control the number of Bitcoins that are released into the network. As you know, too many Bitcoins can lead to plunges in the price, while too few Bitcoins will sky-rocket its value. Both of these scenarios are unwanted and that is exactly what halving events are in charge of.
The interesting thing about them is that they often lead to price surges. Let’s see how people make money with Bitcoin first and then, we’ll take a look at all halving events in Bitcoin’s history.
How Do People Make Money With Bitcoin?
Bitcoin is earned through mining. Mining is a crucial part of the network as it is the cornerstone of its self-sustainability. With this process, miners record Bitcoin transactions which are then added to the blockchain. Blockchain is the log that stores all transactions/blocks. The reward for successfully verified transactions is Bitcoins.
Then, people turn to reputable trading sites to sell them. The Bitcoin Storm website is one of the most reputable sites of this character. This platform has an advanced AI system that analyzes the market and makes accurate predictions on Bitcoin’s future price. This intel is shared with the traders who then know when is the perfect time to sell their assets and maximize their profits.
The option of buying and re-selling Bitcoins is also there, but this is far riskier as you may end up having to sell your Bitcoins at a lower price than the one you purchased them for. Mining them, on the other hand, is free.
All Halving Events in Bitcoin’s History
There have been a total of 3 halving events in Bitcoin’s history – 2 of them led to value peaks a year and a half after they ended, and the third one was recently, so we are yet to see what will happen.
The first halving event took place at the end of the summer of 2012. After the halving event ended, Bitcoin spiked a year and a half later and reached a value of $713. But, after several raids by authorities in the USA, the price plunged.
The second halving event was in mid-2016. After that halving event ended, Bitcoin spiked at the end of 2017 and reached a record-breaking value on December 27, 2017. On this day, Bitcoin was valued at around $19,700, but it plunged 2 days after reaching that number.
May 2020 was the date when the third and final (so far) halving event took place. At the end of the year, Bitcoin topped the 2017 record in value. Not only that but as of March 2021, Bitcoin’s value is over $50,000. Considering the fact that the year and a half mark will be reached in autumn, many experts believe that Bitcoin will peak during this period.