Every great investment needs something to drive it higher – a catalyst.
A catalyst can be 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 start planning.
We’re gearing up for a known event that’s going to affect 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 “when.” We know it’s happening. We know when. And we know how much money investors made when it’s happened before.
Let me get you ready…
Whatever your take on bitcoin (BTC), the last two times this event took place, the world’s largest crypto by market cap – worth more than $137 billion as of this writing – soared into the stratosphere. (Coinmarketcap.com is a good place to check for crypto quotes.)
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 once every few years with bitcoin. It’s written into its code. Basically, it works like this.
Bitcoins are created by “bitcoin miners” who try to solve complex computer puzzles and are rewarded for doing so with an amount of bitcoin that’s already baked into the system. The side benefit for users is that miners create new bitcoin and verify blocks of transactions that come to represent the unbroken chain of transactions on the network. Miners also help secure the bitcoin network.
Right now, a miner receives 12.5 bitcoins for mining one block. At current prices, that’s worth $89,255.
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 “halving” of rewards is to limit the supply of bitcoin over time. In the end, only 21 million bitcoins will ever be created. That’s it. There’s no way to turn on the presses and just print more money. That’s why bitcoin is a type of “deflationary” currency, in that no one — not the U.S. government or China or a corporate board — will be able to change this aspect of it. It’s baked into the system and is a major part of bitcoin’s appeal as an investment, similar in some ways to gold with its limited supply.
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 to 6 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 will remove the number of new bitcoins in circulation by even more: $63 million every single week. When you consider how more than 80% 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.
That’s why I’m predicting the biggest supply shock in cryptocurrency history.
It’s basic supply and demand. 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.
German bank BayernLB predicts the 2020 halvening will send bitcoin prices to $90,000 from around $7,000 now. That’s a 1,185% increase – and investors could make even more!
Don’t Neglect Altcoins
Bitcoin’s halvening is one of the first major investment opportunities 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, but for now I want you to know that bitcoin isn’t the only crypto that’s benefited from these halvening events.
There’s an entire separate class of cryptocurrencies outside of bitcoin called altcoins, or alternative coins. Think of bitcoin like Apple (AAPL) as it hit a $1 trillion market cap… while altcoins are the unicorn companies of today growing faster than Apple could have ever dreamed – companies like Uber Technologies (UBER), Airbnb, and SpaceX.
For example, over the same timeframe it took bitcoin to rise 2,000% after the first halvening, a cryptocurrency called litecoin (LTC) rose 7,483%! Another altcoin called dash shot up 2,658% during the first half of 2014, 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.
The sort 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 for my 2020 Crypto Millionaire Summit coming up on Tuesday, January 7.
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.
P.S. The coming mega-rally in bitcoin isn’t the biggest, most profitable crypto move I see on the horizon in 2020. You heard that right. Something else is about to happen that could put bitcoin’s gains to shame.
It’s an opportunity to make a high-reward, early stage investment — like investing in Microsoft (MSFT) or Google (GOOGL) in the very beginning — and have the chance to turn a small amount of money into millions of dollars.
Matt McCall’s MoneyLine Podcast
Click here to listen to Matt McCall’s MoneyLine podcast! This week, Matt takes some question from listeners and followers on Twitter. With the S&P 500 set to finish with one of its best gains in years, will the bullish trend continue? What about cannabis stocks? Will cryptocurrencies and bitcoin have another great year? What about IPOs in 2020? Chinese stocks? All this and more is covered.
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