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I hadn't planned for there to be a part 5 to my recent Karatbars mini-series but I was preparing something for my First Class Crypto course (I will tell you about that in all good time) and it occurred to me that this little piece of knowledge could be very helpful indeed to you right now.
It’s to do with Bitcoin halving, an event that you could, quite possibly be totally unaware of but, more likely, an event that you have started to hear more and more about recently.
It isn't the halving itself I want to talk about specifically. That, by all accounts, should happen sometime in May this year. Rather, I want to share something with you that has (so far) occurred on the two previous occasions of Bitcoin halving, but that occurred sometime after.
Why? Because I see no reason why KBC should not also be drawn into this somewhat strange phenomenon next time.
Bitcoin halved on 28th November 2012 on block number 210,000. After that, there were 25 Bitcoins in each block mined following the 50 Bitcoin in each block up to and including block height number 209,999.
By the way people will tell you this happens every 4 years. it doesn't. It does, however, happen every 210,000 Bitcoin blocks.
Over a prolonged period, thereafter, the Bitcoin price in the market moved on an upward trajectory. Not, of course, in a straight upward trajectory, it went up, it went down it did the stuff it normally did but, ultimately, post halving moved in value to a new all-time high price that it achieved 369 days after halving of $994.
That was not remarkable but then let us move on to the halving that occurred on block height number 420,000 on 9th July 2016. From that block onwards the Bitcoin reward fell to 12.5 per block. Once again, although there were many days and periods when Bitcoin moved down and moved sideways thereafter, Bitcoin gradually moved on to a new highest price.
It set many higher highs on the way to its highest high of all (up to this point) and the entire climb to that highest of all highs so far took a rather elongated 526 days when, on the 17th December 2017 it hit $19,798.68.
There is, as some have observed, a pattern there. This does not guarantee that history will repeat after block height number 630,000 of course but, there is clearly a precedent for a new highest price being reached. We can't, of course, say when (if) it happens in terms of days after this next halving to 6.25 Bitcoin per block but most people who know something about this crypto world, believe it will happen.
What pray tell, does this have to do with KBC John? Absolutely everything. I would refer you to two historical web pages that I have dug out for you.
The first, immediately below, is a snapshot of coinmarketcap.com on 1st December 2013 (that is the closest snapshot I can get to 369 days after November 28th, 2012).
Take note of the altcoins in the market on that day. Look at the sea of green positive numbers on the last 7-day increases. Unfortunately, CMC only offer us a snapshot of the top 42 coins - I would have liked to have shown you more and, for those that are interested, I was actually in the crypto market back then and I was watching and I assure you it had a positive impact on pretty much every altcoin in the market.
Now look at the picture on 17th December 2017 as near as I can pin it again (because of the limits placed on CMC archives) to 526 days after the 420,000 block halving when Bitcoin hit its (too date) all time high of $19,798.68.
Notice again, the absolute sea of positive green on altcoins. With this one we can go and look down as far as the first 200 of them. There is the odd red stand out, but they could all be explained easily enough if I was prepared to extend this piece to a few more pages.
The fact is, I wanted to simply point out to those of you holding KBC that, regardless of what the company may do to stimulate growth in the coin, it is highly likely that Bitcoin moving back to very positive high ground may well push the KBC coin value higher on its own.
You would do well, as a result of this observation, to think very carefully about good reasons to hold on or even, dare I say it, see very good reason now to acquire more while they are so cheap.
Regards
John
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