Only 272 days left to Bitcoin Halving. Bitcoin halvings always lead to massive crypto pumps. But Why? In the first halving it went up 8000%. In 2nd halving almost 2800%, in 3rd halving 1200%.
And if we have to believe Cathy Wood or Tim Draper. This bitcoin halving is going to be even bigger. You don’t want to miss this massive an opportunity. So in this video I am covering:
- How can you best take advantage of Bitcoin halving 2024?
- And will there be a chain reaction affecting other alts? If yes Which ones?
Stick around and find out!
What is The Bitcoin Halving?
For those of you who are new to crypto and this is your first Bitcoin halving experience let me explain it to you in the simplest and shortest possible way. As a proof of work project, Bitcoin has miners and produces blocks.
Every 10 minutes. You can see these visuals in the background by our friends at Coingecko. They have a great YT channel themselves that you should check out when you finish here.
And when someone finds that block, after giving some of its computing power to help keep the network secure, they receive the block reward.
Every 4 years, that block reward is cut in half. It started at 50 BTC every 10 minutes. Then 25, then 12.5 BTC. Now we are at 6.25. And in late April, less than a year from now, the reward gets cut again. This time, to 3.125 BTC with each new block.
This means the network keeps running, transactions keep happening, but the reward goes down. So is that bad for Bitcoin? No.
It’s good as hashing power (computing power devoted to Bitcoin security) keeps hitting record highs. So miners still see Bitcoin as a worthwhile investment even when the reward goes down to 3.125 BTC every 10 minutes.
Ok now that its establish that Bictoin halvings bring in big pumps. Let me share with you the 2 strategies to maximize your halving gains. Reminding you again, its only 272 days away.
Strategy 1: Plan B
Have you heard of Plan B? He’s an anonymous former quant analyst who has been making pro-Bitcoin arguments and posts for years. He’s the one behind the stock to flow theory that Bitcoin’s stock (current supply) to flow (additional yearly supply) should be measured in the same way as other commodities like gold and silver.
[Buy bitcoin 6 months before a halving and sell 18 months after a halving] has historically beaten [buy&hold]. The next halving is in April 2024 … will this strategy work again?https://t.co/9kjaCUulwb pic.twitter.com/cbO80Ym7iC
— PlanB (@100trillionUSD) July 3, 2023
He believes that each 4 year cycle of Bitcoin operates in 2 different 2 year cycles. They are a bullish cycle and bearish cycle. The bullish cycle according to Plan B, goes from 6 months before the halving to 18 months after. That’s the bullish 2 year cycle.
If that came to pass, then 6 months before the halving in late April would mean late October 2023. Just before Halloween in fact.
Then that 2 year cycle would go until October 2025. The evidence from the 3 previous halvings shows that this is optimal time to buy and hold Bitcoin. It’s even better than just buy and hold regardless of market conditions.
Strategy 2: DCA into Bitcoin
One thing that’s never changed here at Altcoin Buzz and across most of crypto is the value of dollar cost averaging. This is where you set a pre-programmed set of purchases like say $200 per week specifically to buy the cryptos of your choice.
Those who have done DCA for Bitcoin have done very well. Taking advantage of volatility, your $200 buys more at times like the beginning of the pandemic and at bear market lows when Bitcoin was a 3k and 16k respectively. And you buy fewer coins as the price rises.
Just a reminder that every single pleb who has been dollar cost averaging #bitcoin is now in profit no matter when they first started DCA’ing. Every single one of them! pic.twitter.com/pnuIqdQznM
— Wicked (@w_s_bitcoin) July 3, 2023
Bitcoin’s resilience over time means this is a great strategy and you don’t need a ton of money to be able to stack sats. You just don’t. Even $100 per month will build you a nice stack over time.
I don’t think there will ever be a time that we don’t recommend this strategy. Let’s see how it looks if, over the last 6 years, we only bought once every July 1st for $1000. Your prices would be on July 1:
- 2017: $2576
- 2018: $6595
- 2019: $10,822
- 2020: $9094
- 2021: $33,950
- 2022: $19,268
- 2023: $31,134
More About Bitcoin DCA
Check out how you would have done. Over the last 6 years, your $6000 would have bought 0.86 BTC. Contrast that with today where $6000 only buys 0.19 BTC. That’s a clear benefit of stacking sats. And our DCA has a 327% ROI. How awesome is that?
| Starting on July 1st | Purchase Price | $1,000 | Bitcoin Bought | Current Price | P&L |
| 2017 | 2576 | $1,000 | 0.39 | 31,134 | 11086.18 |
| 2018 | 6595 | $1,000 | 0.15 | 31,134 | 3720.85 |
| 2019 | 10822 | $1,000 | 0.09 | 31,134 | 1876.92 |
| 2020 | 9094 | $1,000 | 0.11 | 31,134 | 2423.58 |
| 2021 | 33950 | $1,000 | 0.03 | 31,134 | -82.95 |
| 2022 | 19268 | $1,000 | 0.05 | 31,134 | 615.84 |
| 2023 | 31134 | $1,000 | 0.03 | 31,134 | 0.00 |
| $6,000 | 0.86 | 19640.42 | |||
|
Today’s Price Buys
|
0.193 | ROI | 327.34% |
Notice in down years like 2020 our $1000 buys us more sats and in up years like 2021 it buys us fewer sats. We are using Bitcoin’s volatility in our favor.
Do you DCA into Bitcoin or any other crypto? What’s your entry strategy? DCA or lumpsum? Let us know in the comments below.
Strategy 3: Which Alts Benefit Most?
What alts will benefit most from the halving? One thing we know for sure, Bitcoin leads and the alts follow. Then we sometimes get an alt season where alt returns surpass Bitcoin. Which projects will also benefit? Let’s take a look:
- Litecoin. As the 2nd biggest PoW project and devoted to payments, Litecoin will benefit as Bitcoin benefits
- Stacks. As Bitcoin’s most popular Layer 2, it will become more prominent as Bitcoin returns to the top of the crypto news cycle.
While Bitcoin is not private, its combined full decentralization and pseudonymous nature means it is more difficult to track who does what. It’s definitely possible to do but it takes some work. So we think Bitcoin’s return to prominence means that privacy will get a kickstart forward. And in that area, we like Aleph Zero, Secret, and Nym. They are in a position to benefit from more Bitcoin news and hype.
Welcome to #Stacks 💜 👇
⭐ A #Bitcoin layer for smart contracts
⭐ Enabling smart contracts and decentralized applications to trustlessly use $BTC as an asset
⭐ Settling transactions on the #Bitcoin blockchain
⭐ Unlocking #Bitcoin Decentralized Finance, NFTs, BNS, and more pic.twitter.com/VoHnypE1dx— stacks.btc (@Stacks) February 21, 2023
- Council. Council is one of the leading Bitcoin Ordinal projects and wants to be the governance arm of the entire BRC-20 ecosystem. And they are just getting started.
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