Bitcoin continues to break records with each passing day. Even though many people believed that the 2017 record in value will be the peak of this cryptocurrency, it proved everyone wrong when it finally topped $20,000 in value at the end of 2020. Not only that, but while many speculated that Bitcoin will plunge, the cryptocurrency proved everyone wrong once again and it managed to breeze past it and reach a value of over $50,000.
This price has been stable for the past month and a half, but there is a reason to believe that Bitcoin may rise even more in 2021. We wanted to take a look at that topic and explain the potential that this cryptocurrency still has. But first, let’s take a look at the process of earning money with Bitcoin.
Making Money with Bitcoin
Bitcoin has managed to turn many average people into millionaires overnight. Its network has around 5 million users, many of which are even celebrities. Some popular names that have managed to invest in Bitcoin are 50 Cent, Logic, Elon Musk, Gwyneth Paltrow, Serena Williams, and Snoop Dogg.
Speaking of its profitability, two processes are included in making a profit with Bitcoin. The first process is mining. Through mining, Bitcoin is able to survive and thrive. Mining requires people to record every transaction made with this cryptocurrency. In doing so, the blockchain network is updated daily and allows Bitcoin to thrive. The reward for mining is Bitcoins. The best part about this process is that even though it is extremely hard, it is free.
After a certain amount of Bitcoins is earned, people go to trading sites to sell their assets and make a profit. Choosing a reputable trading platform like Bitcoin Equaliser will make a lot of difference and here’s why. Sites like the one we just mentioned implement advanced AI systems that analyze the market and collect all data about Bitcoin. This data is used to make accurate predictions on how will Bitcoin fluctuate in the near future.
The predictions are very accurate as the daily profitability rate at Bitcoin Equaliser is very high. The predictions are given to the traders and they use it as a powerful tool to generate the highest possible profit.
Why We Believe That The Best is Yet To Come
Even though Bitcoin sky-rocketed to $50,000 after the famous $1.5 billion Tesla investment, we believe that it will rise even more and peak around summer or autumn of 2021. Halving events lead us to this claim and here’s how.
So far, there have been 3 halving events in Bitcoin’s history. The first one took place in 2012, the second one was in 2016, and the most recent one was in May 2020. After the first two halving events, it took Bitcoin approximately a year and a half before it peaked in value.
After the halving event in mind-2012, Bitcoin peaked at $713 in January 2014. The second event took place in the spring of 2016 and Bitcoin peaked at the end of 2017. The third halving event took place in May 2020, and so far, not even a year has passed since that event.
Following that analogy, halving events indicate that Bitcoin may reach its peak around summer or autumn of 2021. Just a reminder, halving events take place when 210,000 Bitcoins are mined, which usually takes around 4 years.
During these events, the flow of Bitcoins is cut massively so that the network will be controlled. Due to the lack of Bitcoins in a certain period, their value rises and peaks after a certain period.