Every great investment needs a catalyst to drive it higher.
It can be something general, like a mega-trend that will grow massively over the years. It can also be something specific, like a new breakthrough product, changing laws, or a drug approval.
It’s rare that you can put a huge catalyst on the calendar.
Well, it’s time to grab your pen and write this down.
We’re only weeks away from an event that’s going to impact the cryptocurrency market in a big way. And it presents us with an opportunity too incredible to ignore.
This isn’t a question of “if” or even “when.” We know it’s happening in just a few weeks. And we know how much money investors made when it happened before.
It’s time to start your preparations before it’s too late …
Whatever your take on bitcoin, the last two times this catalyst took place, the world’s largest crypto by market cap — worth nearly $137 billion as of this writing — soared into the stratosphere.
I’m talking about what’s called “the halvening.” You’ll also see it referred to as “the halving.” If you’re a crypto enthusiast, you probably know what I’m talking about. If not, it’s time to learn about it.
The halvening is an event that happens about every four years with bitcoin. It’s been written into its code since the beginning. Basically, it works like this:
Bitcoins are created by “bitcoin miners” who try to solve complex computer puzzles and get rewarded when successful with a predetermined amount of bitcoin. The side benefit is that the miners create new bitcoin and verify blocks of transactions that come to represent the unbroken chain of verified transactions on the network. Miners also help secure the bitcoin network from potential attackers.
Right now, a miner receives 12.5 bitcoins for mining one block.
But soon, this figure will be cut in half — miners will receive only 6.25 bitcoins as a reward for mining one block.
The purpose of this reward “halving” is to limit the total supply of bitcoin over time. In the end, only 21 million bitcoins will ever be created. That’s it. There’s no way to flip on the presses and just print more. That’s why bitcoin is really a “deflationary” currency. That means no one — not the U.S. government or China or a central bank — will be able to change the bitcoin supply. This feature is a major part of bitcoin’s appeal as an asset class, similar in some ways to gold with its finite global supply.
At a time when governments around the world are spending trillions of dollars to stimulate the sagging global economy, potentially leading to an uptick in inflation, that makes bitcoin a highly attractive investment.
Thanks to the halvening, the market will soon receive half the daily supply of new bitcoins that we have right now.
Now, going from 12.5 to 6.25 bitcoins as a reward for miners might not sound like a big deal …
But just consider what happened to the price of bitcoin after the first halvening in November 2012, when the reward went from 50 bitcoins to 25 …
Prices once again soared after the second halvening took place in 2016, when the reward went from 25 bitcoins to 12.5…
This next event — now less than a month away — will remove the number of new bitcoins in circulation by even more: $63 million every single week. When you consider that more than 85% of all the bitcoins that will ever be created have already been mined … and less than 20% of all bitcoins will ever be created in the future … this $63 million figure is astounding.
It’s basic supply and demand.
That’s why I’m predicting the biggest supply shock in cryptocurrency history. If the demand for something remains constant and the supply is cut in half immediately … the price will soar! And in this case, demand is increasing at the same time supply is decreasing.
Mike Novogratz, CEO of Galaxy Digital and a former Goldman Sachs partner, predicted that the 2020 halvening will send bitcoin prices to $12,000 by October and on to $20,000 by the end of the year. That’s a 167% increase from around $7,500 now — and smart investors could make even more!
Don’t Neglect Altcoins
Bitcoin’s halvening is a major investment opportunity of the new decade, and I want to make sure you have all the information you need to take advantage. We’ll talk more about it over the next few days. For now, though, you should know that bitcoin isn’t the only digital currency that’s benefited from these halvening events.
Far from it.
There’s another class of cryptocurrencies outside of bitcoin called altcoins, which is basically short for “alternative coins.” Think of bitcoin like Apple (NASDAQ:AAPL) with a $1 trillion market cap … while altcoins are the unicorn companies of today rising faster than Apple could have ever dreamed — companies like Zoom Video Communications (NASDAQ:ZM), Teladoc Health (NYSE:TDOC), and SpaceX.
Let me give you an example. In the time it took bitcoin to rise 2,000% after the first halvening, a small altcoin called Litecoin rose 7,483%!
And in the first half of 2014, another altcoin called Dash shot up 2,658% — more than 50X bitcoin’s 53% jump over the same period.
The bottom line is that while the halvening pushed bitcoin to new heights, it made small altcoins grow exponentially higher.
But here’s the thing … the kind of returns I’m anticipating for the coming event could make all of this look like child’s play.
The time has come. Smart investors need to know about cryptocurrencies, altcoins, and the like. If you want to learn more about how the halvening works and what I see ahead for this rising asset class, I urge you to sign up now for my 2020 Crypto Millionaire Summit: Last Call, which is coming up on Wednesday, April 29 at 7 p.m. ET.
It costs you nothing, and it could be the most important investment decision you’ll make this year … and possibly one of the most important of the new decade.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities.