bitcoin halving

Bitcoin halving is process of decrease in reward for miners effort. This will continue until the last bitcoin is mined. And the final bitcoin is predicted to be mined around the year 2140.

When miners solve mathematical problems with their hash power to verify transactions on bitcoin blockchain and secure the chain, they earn an amount of bitcoin (block reward) as payment for their proof of work (PoW). This rewarding process is so crucial for bitcoin blockchain. Every 210,000 blocks or every four years that bitcoin reward is halved. This situation is called ‘Bitcoin Halving’. Satoshi Nakamoto programmed/explained it at the beginning this digital freedom era.

Remember that only 21,000,000 BTC exists and about 18.400.000 BTC are in circulation as of May 8, 2020, which means there only are 2,400,000 BTC left as mining reward. Therefore, Bitcoin halving is a big phenomena for BTC price.

Bitcoin Halving News

Next bitcoin halving will be on 12 May 2020. So, 3 days (72 hours) remained for it. After May 12, 2020, miners will only be paid a total of 6.25 btc per block added to bitcoin blockchain. This has happened 2 times before ( 2013 and 2017). Here are some scenarios for miners and possible bitcoin price moves over time before and after bitcoin halving.

How BTC Price has Changed during Previous Halvings?

The BTC reward was 50 BTC for each block in the chain in 2009. During the first halving, the reward reduced from 50 to 25 BTC. Then, the second halving led to decrease the reward from 25 to 12,5 BTC for a block in a chain. On 12 May 2020, there ward will be 6,25 BTC for a block.

During the first halving, the price risen from $10 to $1,150 and the price was $650 during the second halving. After the second halving, the price increased by $20,000.

bitcoin-halving-graphic

To put it in another way, let’s say you are a gold miner and the gold you can mine decreases every four years. Price change will be inevitable for gold, so its price would increase theoretically. However, please, always remember it is not a certain rule that the price increases after halving.

After Bitcoin Halving

As explained above, halving is a big phenomena for the price. Halving means that the miners will get 50% less BTC rewards (6.25 btc per block), which can create a shortage for BTC in circulation. Then, the price may start to rise in value.

In addition to that, if the price is lower than the mining cost, there is a theoretical possibility that some of miners can leave the network, which can create insecurity in the system and decrease in price. However, at the same time most of miners would like to keep mining BTC in order to keep the price high because they have huge amount of Bitcoin in their wallet.

To sum up, we, investmug.com editors, think that the second scenario will not work and the market will demand more BTC in time although less Bitcoin is mined. So, the BTC price will have increasing trend for long-term investment. As a result, each decrease in price should be considered as buying opportunity for the future.

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İf you like to buy bitcoin before halving event, click here to buy with credit card.

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bitcoin forks bitcoincash BCH BSV

Hi all, this post is going to be short and about Bitcoin Bitcoin Cash and Bitcoin SV for dummies like myself 🙂 Enjoy

In 2008, bitcoin was created, and it has become the starter of a new era of money, payments, and store of value. Thanks to blockchain, you do not need the middle man to make deals, bank to control your money, government proof to transfer value. The whole idea of blockchain is to create a system of transformation of information in a decentralized manner. It also created a value of each transaction as cryptocurrency, bitcoin.

Think of a bank account and you need to withdraw money or send it on your app to a friend or family member, they will charge you, they will limit the amount, or even block your account.

Like everyone else out there, you need a fearless access to your money at the time you need it. Think about investing in stock market, and you want to invest in a company based on a news at the middle of the night. With current banking system, you can’t. Cryptocurrency and blockchain are there to remove all the borders that centralized payment systems build between you, your money, and people.

You can skip the need for banks to trust or any other organization to control your savings, identity, or YOU. You can have 100% total control on your information thanks to cryptography.

Even with blockchain technology, peer-to-peer transactions needs updates and community grows and demand increases. For example, bitcoin has 7 major hard forks. Let’s see what we have done in name of BCH…

Bitcoin Cash

In 2017, bitcoin and its community decide to split their direction and differ each one with their unique ticker, BTC and BCH. So why bitcoin cash over bitcoin?

Bitcoin had a unique way of verification for each transaction on blockchain. These each transaction was recorded in a block of chain. The size of block for bitcoin was 1MB. Developers and miner agreed on increasing block size to be 2MB to increase scalability and they introduced SegWit2x protocol. However, this action did not worked as expected. In August 2017, some miner and devs decided to go through a hard fork as knows major updates to create another chain from original. This makes previously invalid blocks/transactions valid (or vice-versa). As a result, bitcoin cash, BCH, was created within its own blockchain having a block size of 8 MB to accelerate the verification process. This feature made bitcoin cash verification and transaction speed faster and fees lower than bitcoin.

Due to some debates among community, in 2018, BCH also ended in a hard fork to create Bitcoin SV. Developers believed to stay true to Satoshi’s original bitcoin white paper and to facilitate scalability and faster transaction speeds.

Summary

All these hard forks on bitcoin blockchain has occurred as community cared future of the bitcoin cryptocurrency, and its ability to scale effectively. As crypto community gets bigger and more demands created on blockchain technology more updates or hard forks will appear. For sure, future will be defined as we unleash from our chains and borders. Crypto community has started it with bitcoin. Let’s continue…

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In this post, we have mentioned about bitcoin, bitcoin cash, and bitcoin SV as hard forks. Read more about cryptocurrency here.

Let us know what you think about bitcoin’s future fork updates.

According to our previous Bitcoin Price Prediction, we have predicted three support areas (click here to see previous prediction). During a week, the price kept going down by our first support area then slightly rose. So, ones who waited the price to fall have won. It seems to us that Halving situation does not allow the price to fall deeply (click here to see the countdown). Economical and stock market problems in the world (especially in the USA recently) may lead people to look for a safe investment. Limited moneys such as Bitcoin, Gold and Silver are the most important ones for that. This is because gold and silver have always been money for thousands of years and Bitcoin is a new decentralized concept for money and no one can manipulate it. After those small information, let’s start our Weekly Bitcoin Price Prediction.

Interpretation: The price is almost at the first support area as we drew last week. Short term moving average (blue line) is below long term moving average (red line). Moreover, the price is above 100-day moving average (purple line). RSI started to rise slightly during a week.

Bitcoin Price Prediction: The short term-long term moving average situation states that the price will keep falling. 100-day moving average line is a good support point for the fall. If the price turns into a start channel, we may possibly see a cup handle formation (orange and purple arches).

As long as the stock market goes down in the world, it is possible to see that invest in Bitcoin rises and cup handle formation may possible be formed in 2-3 weeks. In case of fall, 100-day moving average line is a good stop-loss point. Below 100-day moving average, unwanted huge falls can be possible.

THOSE PREDICTIONS ARE JUST OUR IDEAS AND NOT INVESTMENT ADVICE.

Bitcoin started to fall as we predicted last week (click here to see previous prediction). The rising channel had been broken down last week already. Therefore, the price kept falling up to $8,800 for now. In our opinion, that fall is normal because people who bought Bitcoin earlier started to take their profit. The good news and what makes Bitcoin still trustworthy is that no political issue or epidemic (corona virus) can affect the price directly. So, this fall is not related to falls in the stock markets recently. Halving situation seems like a reason to rise for middle-term investors (click here to see the countdown). Let’s start our Weekly Bitcoin Price Prediction (27/02/2020) to see what is waiting for us.

Interpretation: As we stated before, we are not in the rising channel anymore (turquoise line). In addition to that, short-term moving average (blue line) is below long-term moving average (red line). RSI is also falling with the falling price.

Weekly Bitcoin Price Prediction: The purple, green and orange boxes show where the price felt before and started to rise later. So, our opinion is that the price may fall by those prices again and then start to rise. Because of that, the price in those orange, purple and green boxes are support values.

For ones who want to buy Bitcoin, it is a smart idea to wait until RSI falls by the red box. When the RSI is in the red box, the price trend may possibly change from falling to rising trend.

THOSE PREDICTIONS ARE JUST OUR IDEAS AND NOT INVESTMENT ADVICE.

Bitcoin price started to fall as we have predicted (click here to see our previous prediction). There is no exact reason for that fall. In our opinion, Bitcoin has risen enough for a while and we may start to see some falls because people want to get their profit. If you put our stop-loss point, that fall did not affect you badly. Halving is still on so rising in the price is a normal position for middle term investment (click here to see the countdown). However, we must know that the halving situation will not affect altcoins directly. So let’s start our Weekly Bitcoin Price Prediction (20/02/2020).

Interpretation: Unfortunately, we are not in the rising channel trend anymore for 2 days (turquoise lines). As we predicted last time, the price has risen up to the purple line then started to fall not breaking the resistance to go up. However, short term moving average (blue line) is still above long term moving average (red line). In addition, RSI decreased breaking its rising trend to fall as well (orange line).

Prediction: Short term moving average (blue line) is still above long term moving average (red line). It means that we are still in rising trend. However, the price is not in the rising trend channel anymore. Therefore, it is smart to wait until the price goes up to the rising channel. In our opinion, the blue rectangular is a good support point as the price has risen to that value and started to rise a couple of times (blue rectangulars).

THOSE PREDICTIONS ARE JUST OUR IDEAS AND NOT INVESTMENT ADVICE.

Hi guys, our last Bitcoin Price Prediction has worked well again (click here to see last week predicton). Since last week BTC has risen and then fell by $8,500. As long as we have halving situation on May, rising trend is supposed to continue as well as some short-term fall for arrangement.

Interpretation: As you can see from the price chart, we are still above falling-trend channel showed with purple lines. Short term moving average (blue line) is still above long term moving average (red line). However, the blue line has just changed its trend from rising to falling. In addition, 100-day moving average (green line) has just touched the top of the falling-trend channel line. RSI is in rising trend (orange line).

Prediction: Although short-term moving average is still above long-term moving average, it has been starting to go down for 3 days. So we might see a falling trend for a few days . For this fall, $8,100 is a good support because both 100-day moving average and top of falling-trend channel are at that value. So, it is a good support point. However, we do not expect that much fall unless there is a bad unexpected situation leading to fall. As long as we are not in the falling channel, the trend is always positive to rise. If short-term and long-term moving average intersect, it is possible to see a falling stage trend. As a result, what we think is that the price will fall until RSI touches to the rising trend line (orange line) and then the price start to rise again.

THOSE PREDICTIONS ARE JUST OUR IDEAS AND NOT INVESTMENT ADVICE.

Hi Guys, we passed the critical point. Our previous ‘Bitcoin Price Prediction’ has worked well and BTC has risen by $8,900 in a week (Click here to see previous prediction). The expected halving situation may directly affect BTC price to rise because the award with BTC-mining will decrease from 12.5 BTC/ block to 6,25 BTC/ block. However, for short-term investment we should not consider that issue as we still have time for the halving (Click here to see the remained time and some stats).

BTC price predicton for 16/01/2020

Interpretation: In daily chart, the channel between purple lines that BTC moves up and down was broken to rise in a week as we predicted. So, it is a good signal. In addition, longer-term trend with green line still continues. Short-term moving average is still higher than long-term moving average (another good signal). Also, the BTC price is higher than 100-day moving average. RSI is keeping rise trend.

Prediction: There is rising trend in RSI and short-term moving average is still higher than long term moving average. So, it is a rising price signal for short term. It can rise up to $9,500 potentially. After that rise, we expect to see some fall for arrangement. The supports for that rise trend are $8,300, $8,000 and $7,200 (for longer trend).

THOSE PREDICTIONS ARE JUST OUR IDEAS AND NOT INVESTMENT ADVICE.

Hi guys, this is our first BTC prediction time for this year, weekly Bitcoin price prediction. We are going to use our experience and technical analysis methods to predict bitcoin price in short and long terms.

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Interpretation: Here, you see 3O-minute price graphic of BTC price change. Short time ago, bollinger band shrinked then the price went down sharply (1). Moreover, RSI went down up to below 30. That situation can be considered as a good signal to buy BTC. In time, although RSI showed going up trend (4), the price had going down trend (3) (Positive Divergence). Simultaneously, bollinger band became shrinked (2). As a result, Positive Divergence worked very well and the price and RSI went up immediately. The price became at the top of its normal trend price interval (5).

Price Prediction: The price is out of bollinger band at the top. So, the price is supposed to decrease by $7,200 something. Moving Average indicator for 100 days is a good signal to see resistance and support well in a graphic and RSI is above 70 (6). So, here we can be inferred from the RSI that the price is high enough and will decrease with decreasing RSI. Also, 100-day-Moving-Average states that 7,152$ is a good support for this trend if it goes down (7). If the price went down below that, stop-loss should be considered. Weekly Bitcoin Price Prediction.

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THOSE PREDICTIONS ARE JUST OUR IDEAS AND NOT INVESTMENT ADVICE.