19/04/2024
The BitCoin Bomb.
Bitcoin is said to be halving tomorrow. What does that mean, and should an investor take interest?
To keep the value of BitCoin growing, every 4 years, the pay that a BitCoin miner makes per coin is cut in half. This will slow the creation of new BitCoin and add value to BitCoin already in circulation. So why could it also blow-up?
The stock market investment in BitCoin was a mixed blessing. Once investment funds added BitCoin to their portfolios, its value skyrocketed. This was a good thing in the short-term but disastrous in the long term. Now, BitCoin's value is locked with the ups and downs of the stock market. Because of this, when BitCoin halves their is a possibility that those very firms will de-invest and send BitCoin crashing.
Usually, when a halving happens, BitCoin's value jumps between 20 and 40%, but since the stock market has its tentacles around it, BitCoin could crash when they put a hold on investing further into it. This could be a good thing, too, if you want to invest a small amount of cash into BitCoin when you think it has hit rock bottom.
I've made over $4k on just a small investment of my monthly allowance and gift money. I bought low and sold high. If you're interested in investing in BitCoin, the next month or two may be your window of opportunity to get in on a deal. BUT: Do not invest money you can't afford to lose!!!