How to Take Full Advantage of the Bitcoin Halving Taking Place in 2020

If you’re into cryptocurrencies, you already know that another Bitcoin halving will take place this year. However, this article is going to be a lot more interesting for you if you’re not that into Bitcoin or crypto, but you’re eager to learn. If you want to know all about what is a Bitcoin halving and how to make some nice money when it happens, keep reading.

What is Bitcoin Halving

The halving process, even though it may sound like a negative process, is actually something very good for those that own Bitcoin already. It’s an even that was built into the Bitcoin architecture for the beginning and it takes place roughly every 4 years. When 210,000 Bitcoin blocks are mined, a halving takes place so that there are fewer rewards for the future blocks mined. This is part of the system to keep the Bitcoin price unaffected by inflation since with a finite number of 21 million Bitcoin and a halving every 210,000 blocks mined, you will always have competition.

If things are still a bit fuzzy, there’s no reason to worry. Everything will become clear in a few seconds. So, to sum things up, the reward for mining a Bitcoin block is reduced by 50% which makes the Bitcoin already mined more valuable. And while this measure may seem unfair for miners at first, chances are that they will benefit from the halvings in the end. Even though the reward is lower, the value of Bitcoin should surge.

When Will the Next Halving Take Place?

As stated earlier, halvings take place with every 210,000 blocks mined. It is estimated that a block takes around 10 minutes to be mined so that would mean roughly 4 years from one halving to the next. Since the last one took place in August 2016, it is expected that July 2020 is the date for the next event. Even though some users observed that the time needed for a Bitcoin block to be mined is 9 minutes and 20 seconds, that doesn’t change the month of the halving this year.

How Does a Halving Affect the Price

It’s not 100% guaranteed that the price of Bitcoin will surge after the halving. However, judging b the events right after the last halving, we can conclude that this has a dramatic effect. There are two theories about how the price will be affected. Some say that the Bitcoin community is well-informed of the halving and it won’t cause too many spikes in price evolution. However, there’s another group of people that rely on basic economics to predict the Bitcoin price will go up. Since the Bitcoin supply is going to be shortened, the price has no choice but to climb with the increased demand and the FOMO kicking in.

Other Ways to Make Money with Bitcoin

So, if you have some funds available and you’re ready to take a calculated risk to multiply it, buying Bitcoin before the halving should be a great idea. Of course, it’s still too give valuable advice on the move since Bitcoin price still fluctuates until then. And, if you don’t have enough funds to buy Bitcoin and speculate a spike in its price, you can always try your luck at a Bitcoin casino.

Just like a regular online casino, a Bitcoin casino will allow you to make payments in the chosen cryptocurrency and enjoy the games in the same currency. When you win, you withdraw your funds back into the wallet and if the price surges in the meantime, you win even more money when compared to FIAT currencies.

Of course, none of the methods are risk-free. So you should make sure you’re never gambling with funds that you need for other purposes. Take every advice and put it through your own filters before committing to any investment.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.