Trader Jack’s Guide to the Upcoming Bitcoin Halving Event

We are only two months away from the next Bitcoin halving, an event which happens every four years. It is called the halving as it causes the rate at which Bitcoins are generated to be cut in half. Now understand that miners are rewarded in the form of Bitcoin by generating a cryptographic solution that matches the specific criteria. This is the process of validating the information in a blockchain block also known as Bitcoin mining. The current block reward is 6.25 BTC, this reward is expected to be cut into half at 3.125 BTC after the halving, which is expected to happen between mid-to-late April 2024.

A little background on the asset: Bitcoin was the first cryptocurrency created and made public in 2009. Bitcoin was invented by a computer programmer under the pseudonym “Satoshi Nakamoto” whose identity has never been verified. 

For more than a decade, the narrative has shifted around the giant crypto asset whose total market cap has surpassed the trillion dollar mark. Even after the mass adoption by the public, many of the top fund managers avoided Bitcoin as they believed that it was unsafe and that the rise in price behind the asset was only temporary.

The big news around Bitcoin came in just a couple months before the big event. In January 2024, the US Securities and Exchange Commission, also known as the SEC, approved the first ever spot Bitcoin exchange traded fund (ETF). A total of 11 pending applications for Bitcoin ETFs were approved. Among those applicants is BlackRock, the world’s largest asset manager with over US $9 trillion worth of assets under management. Finally after years and years of doubt, Bitcoin has become a legal asset to invest in the United States. The following month after the ETF approvals, Bitcoin has seen a high of about $53,000 in February, which only is $16,000 away from the last bull run’s high that occurred after the halving of 2021. That year, the asset had reached a high of about $69,000, although we are still a couple months away from the big halving event.

Should you invest in Bitcoin?

I’m a great advocate of building passive income and a firm believer that investing could become an advantage if done correctly. In my opinion, Bitcoin has the potential to become a store of value like gold has been for many centuries. Over the last ten years, it has outperformed the S&P 500 close to 2,200-fold. 

A study found that the average millionaire had around seven sources of income. It’s fair to say those millionaires understood the concept of investing and they found ways to use their hard-earned income to invest into cash flowing and appreciating assets. Am I saying that you should ditch your job and focus solely on building passive income? Absolutely not, certainly having a career is important and necessary. However there’s a cap on the age of retirement and the amount of hours that you’re capable of working in a day. Through investing, you can have the sole ownership or be a part owner of a particular asset. Same as those millionaires, your money could be working and earning 24/7, but you have to put it to work.

Inflation has been growling like a mad dog. Year after year, it’s eating away the buying power of your hard-earned cash sitting in the bank, and the only way to stay ahead of it is through investing. The objective is to provide you with solid facts, encourage you to do research, and figure out how to incorporate investing into your lifestyle. This way, you are not left behind when the properties in your area are appreciating and the businesses, products of your everyday uses are going up in value. 

Your boss made a very smart decision to invest into a business, the employees do the heavy lifting and get rewarded through salary and wages, but the business owners benefit by making millions and sometimes billions through the ownership of the business. You can become your own boss someday by putting your money to work and owning assets. Investing can change your life, start today!

Editor’s Note: This article is not financial advice for any particular stock or platform. Its sole use should be to understand the nature of markets and their current moves.

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