The third halving of Bitcoin is only one year away: May 2010.
What does it mean? The new Bitcoins supply will be cut in half for the third time and Bitcoin’s inflation rate will also be cut along with it.
This is one of many positive things about Bitcoin because it has been designed to have a decreasing inflation rate and unlike fiat money, there is a limited supply and it just can’t be printed at the will by governments.
Bitcoin was created by its founder Nakamoto as an antidote to excessive debt. He understood that man can not trust fiat currency, the big banks that leverage and manipulate currencies nor the biggest manipulator governments. Bitcoin can also act as a hedge against inflation.
So, what else does the halving mean for Bitcoin? Historically, Bitcoin’s price experiences a major rally about a year after a halving. Many analysts are predicting major price spikes. As a long-term investor you should not overly concerned with short-term price movements. But, if you want to invest in Bitcoins in the long term, may be investing now is a pretty good time.
Sven Franssen