There are tons of things that all Bitcoin traders should know and be aware of if they want to be successful in the business of making money with Bitcoin. Knowing all the terms, reading the latest updates, researching the most reputable trading sites are just a few of the activities that deserve a mention.
As Bitcoin keeps breaking records in value, new traders join the network with each passing day. They are keen on making a profit and making the most out of this cryptocurrency. They are open to being educated on Bitcoin topics and that is exactly what we plan on doing today. We are going to take a look at one of the most important components of this cryptocurrency – halving events. Before we explain everything that you should know about these events, let’s also explain how traders make money with this cryptocurrency.
How Do You Make Money Using Bitcoin?
There are two ways to profit off of Bitcoin – the first one is to buy it and re-sell it on trading sites and the second is to mine it, then sell it on trading sites. The first option is way riskier as it involves a chance of losing money because you may end up having to sell Bitcoins at a lower price than the one you bought it for. Mining, on the other hand, is free, and you have to solve complex puzzles. Each puzzle that you solve means that you’ve successfully verified a Bitcoin transaction.
The one common element of these two ways is trading sites. They are the platforms where Bitcoin users come to sell or buy Bitcoins. They also offer one additional service. Reputable trading platforms such as bitqs have advanced AI systems that can collect the data about Bitcoin from the market and analyze it.
After they analyze it, they make an accurate prediction on what the future price of Bitcoin will be, thus enabling traders to sell their assets at the perfect moment and maximize their profits. As you can see, this is a very powerful benefit to have.
Now, let’s see why are halving events so important.
What Makes Halving Events So Important?
Halving events take place at every 210,000 Bitcoins mined or approximately every 3-4 years. During these events, the production of Bitcoins is lowered and it becomes very hard to mine them. These events control the flow of Bitcoins and make sure that the market is not overloaded with this cryptocurrency.
The reason why they are so important is that they always lead to spikes in the value of each Bitcoin unit. Since the production of Bitcoins is cut down and it is very hard to get your hands on one, it is logical that the value of each Bitcoin will increase.
So far, there have been 3 halving events in Bitcoin’s history and all of them have led to a surge in its price and we are more than happy to take a look at all of them.
Taking a Look at All Halving Events in History
The first Bitcoin halving event took place in 2013. After that, Bitcoin’s price surged in early-2014 and reached a then record-breaking value of $713. But, after several raids by authorities in the USA, many Bitcoins were confiscated and the price plunged.
2016 was the year when the second halving event took place. After that halving event, Bitcoin spiked at the end of 2017 and peaked at over $19,000. But, as the market was overflown, it managed to plunge in 2 days. The last halving event took place in May 2020, and shortly after that, Bitcoin broke the record at the end of the year and even managed to top $50,000 at the beginning of 2021.