Bitcoin Halving 2024 Date
The Bitcoin halving event is set for April 2024, in the past halving events have been followed with strong price rises in Bitcoin. These rises don't happen immediately though, for example for the 2012 halving, Bitcoin rose from the $10 range to over $1,000 within a year. In 2016 and 2020 it wasn't until the following year post-halving that the big "bull-run" increases happened.
What Is "Bitcoin Halving"?
Bitcoin halving happens after every 210,000 blocks are mined. This roughly happens every 4 years on average. The halving is a scheduled event where the reward for mining Bitcoin transactions is cut in half.
- Miners: These are individuals or groups who use powerful computers to solve complex mathematical puzzles and validate Bitcoin transactions. In return for their efforts, they receive a block reward in the form of newly minted Bitcoin.
- Block reward: Initially, the block reward was 50 Bitcoin. However, with each halving event, this reward is halved. After the most recent halving in May 2020, the block reward became 6.25 Bitcoin.
- Scarcity: This gradual reduction in the block reward serves to limit the total supply of Bitcoin. Eventually, all 21 million Bitcoin will be mined, after which point mining rewards will disappear and miners will solely rely on transaction fees.
Reasons For The Halving
As with any currency, too much Bitcoin in circulation could lead to inflation, decreasing its value. The halving helps to control inflation by slowing down the rate at which new Bitcoin is created. By limiting the supply of Bitcoin, the halving can potentially lead to increased demand, which could in turn drive up the price. However, it's important to note that this is just a theory, and future price movements are hard to predict. However, the halving can also impact the profitability of mining. As the block reward decreases, miners will need to find more efficient ways to mine Bitcoin or may opt to leave the network altogether.
Why Do People Think Bitcoin Will Go Up In Price Post-Halving?
While there's no guarantee that Bitcoin's price will always rise after a halving, historically it has tended to do so. This is due to a few different factors:
- Reduced supply: The halving directly impacts the available supply of Bitcoin. By cutting the block reward in half, it slows down the rate at which new Bitcoin enters circulation. This creates a scarcity effect, making each existing Bitcoin potentially more valuable due to its limited availability.
- Increased demand: The potential for increased value often attracts more investors and speculators to the market. This increased demand for Bitcoin can further push the price up as buyers compete for a limited supply. Think FOMO.
- Media attention: Halvings are significant events in the Bitcoin community and often receive widespread media coverage. This increased awareness can attract new investors and contribute to increased demand.
- Psychological factors: The perception of Bitcoin as a scarce and valuable asset can be amplified by the halving event, encouraging investors to buy and hold onto their coins in anticipation of future price increases.
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Three Lesser Known Alt-Coins Our Exclusive In-House Crypto Analysts Are Watching
The term "alt coin" in a broad term is used to describe any cryptocurrency other than Bitcoin. They are "alternative coins" to the original flagship of the crypto space. Some of the more well-known alt-coins include Ethereum, Solana, Litecoin, Dodgecoin, Binance Coin, and Cardano. Different alt-coins can be used for different purposes. Some can be used for payments, smart contracts, decentralized apps, data storage, and more.
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Meme-Coins Vs. Alt-Coins
The term "meme-coins" is used to describe cryptocurrency inspired by memes, jokes, trends, or viral sensations that spread like wildfire. They often feature popular online characters, animals, or references to pop culture. These are actual cryptocurrencies with their own blockchain, tokens, and communities. However unlike the more serious alt-coins like Ethereum, meme-coin's primary reason for being ins't to solve a specific problem or revolutionize an industry, they exist "for the culture".
What Is Filecoin?
One alt-coin that we are looking at is Filecoin. It is a peer-to-peer network that is aiming to become a decentralized alternative to traditional cloud storage. Imagine a global marketplace where anyone can rent out unused cloud-storage space, and anyone can pay to store their files securely, without relying on any one single company. This is Filecoin's vision. Their utility includes:
- Decentralized data storage: Anyone can join the network, either as a storage provider or a client. This avoids dependence on centralized cloud providers and the potential for censorship or data breaches.
- Cost-effective: Filecoin aims to offer competitive storage prices through an open market, potentially undercutting traditional cloud storage options.
- Highly durable storage: Filecoin uses cryptographic proofs to ensure files are reliably stored over time, even if certain storage providers go offline.
- New data services: The network can support advanced data services like data retrieval, sharing, and archiving, creating a vibrant ecosystem around data storage.
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Pros And Cons Of Filecoin
The global data storage market is booming, and Filecoin could capture a significant share with its unique proposition. Continued development of blockchain technology and distributed computing could make Filecoin even more efficient and secure. As data privacy concerns rise, Filecoin's decentralized nature could become increasingly attractive.
There are some complications with Filecoin. It is is a complex system with unique features and token economics. Understanding and using it effectively requires technical knowledge. Convincing users and businesses to switch from established cloud providers can be challenging. Like any blockchain project, Filecoin is not immune to potential security vulnerabilities that could compromise stored data. The network currently relies on a proof-of-space consensus mechanism, which requires miners to dedicate significant storage space, potentially leading to high energy consumption.
Overall, Filecoin has the potential to revolutionize the way we store and share data. However, its success will depend on overcoming technical challenges, attracting widespread adoption, and addressing environmental concerns. The future of Filecoin is yet to be written, but it's a project worth watching closely. CoinCodex's AI model is predicting Filecoin's price to shoot up 133% in the month before Bitcoin's next halving in April 2024. That would put $FIL at around $17.
How We Are Trading Filecoin $FIL
Filecoin $FIL is currently trading at $6.541 as of this writing.
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If we get a dip from here: We are personally watching for the price to break below $5.80 and then have a 4H candle close back above $5.80 for a bullish/long entry. Targets at $7.60, $9.50 and $11.40. Stop loss below the low that was made when the price originally broke below $5.80
If we go up from here: If we go up from the current price, and have a strong break above $7.60 on the 4H chart, we are watching for a bullish/long entry with targets at $9.50 and $11.40. Stop loss at $6.80.
NEAR Protocol And Propchain Technology
NEAR Protocol is a blockchain that allows developers to easily create DeFi Apps on the NEAR blockchain. Their token $NEAR is used to pay for NEAR blockchain transactions, used to earn NEAR tokens via staking, and gets you access to their DAO structured governance. Check out our blog post and trade idea for $NEAR.
PropChain is a Web3 platform that allows users to invest in fractional shares of real estate. This allows investors who can't afford to buy real estate property on their own to benefit from rental income and capital gains income from renting out/selling real estate. $PROPC is the token they use. Check out our blog post and trade idea for $PROPC.
