Five (5) Cryptocurrencies to Buy Before The Upcoming Bitcoin Reward Halving

Five (5) Cryptocurrencies to Buy Before Bitcoin Reward Halving

Bitcoin Reward Halving – What Is It?

Considered one of the most important events in the Bitcoin community, the Bitcoin reward halving is the process by which the incentives available to miners decrease by half of what it currently is. The Bitcoin Halving mechanism, put in place by founder Satoshi Nakamoto, purpose is to incentivize the network and slowly distribute the 21 million currency supply.

Historically, the Bitcoin reward halving has been known to be a prelude to a monumental bull run. During the last halving event, on 9 July 2016, the market saw a surprising turn of events. When the rewards fell from 25 Bitcoins per block to 12.5, we saw an instant surge to $650.

Later next month the trend continued with Bitcoin reaching $2500. As the year ended, the market saw its highest demand, pushing Bitcoin price way above $20,000.

Despite the market reaching new all-time highs, the 2016 halving event was nothing when compared to the one in 2012. With Bitcoin hanging at $11 in November 2012, the halving pushed the price way above $20.

Later next year, continuing with the trend, the price of Bitcoin reached $1100. A 100x price increase in less than a year was monumental, to say the least.

When is BTC Reward Halving?

The halving mechanism was planned such that the rewards go down roughly every four years, or specifically every 210,000 blocks. The next block reward halving expects to occur when blocking no. 630,000 has been successfully mined.

Related: Bitcoin May Surge 100% Before May 2020 Halving, Says Fundstrat

According to most estimates, 18th May 2020 could be the day the rewards go down. On this day, we will see the block reward fall from 12.5 to 6.25 bitcoins.

Why is the BTC Halving Event Important?

It is quite evident that Bitcoin halving events are important for traders, miners, and network participants. The halving effectively reduces the number of new bitcoins being generated by the network.

Following basic economic assumptions, this limit in the supply of new coins could bring about additional demand as there are fewer coins for an increasing number of interested buyers.

But the spectacle doesn’t just end there. Bitcoin has always been the spearhead of the entire crypto market. Some even term Bitcoin as the crypto market’s gateway currency, as more people are susceptible to explore other “altcoins” after they get into bitcoin.

The last halving was nothing different. In 2017, about 9 months after the halving event, the entire crypto market saw its greater ever run. Looking at Bitcoins’ returns, a huge pump occured in other cryptocurrencies as well. Many currencies saw their highest ever listings, just because Bitcoin was pushing the market through the sky.

Also read: Bitcoin 2020 Price Predictions from Some of the Globe’s Most Influential People

Now that we understand what the halving event means for the market, it is important to know what it means for other cryptos as well. We can expect a lot of projects taking advantage of the upcoming 3rd Bitcoin bull run, but there will be some of them that push the hardest. And so, we have compiled a list of the projects one should definitely look into before the halving.

5 Crypto to Buy Before Bitcoin Reward Halving:

#1: Ripple (XRP)

Ripple, and it’s native token XRP, quite easily the best performing crypto asset in the historic 2017 bull run. The gains during the bull run were astronomical. According to certain estimates, XRP saw a price increase of 36,000%.

Yes, you read it right. To put that into perspective, if one had invested in Ripple over bitcoin before 2016, they would have seen returns upwards of 3x over Bitcoin. If history repeats itself, it is our opinion that XRP is a crypto one should be on the lookout for.

#2: Basic Attention Token (BAT)

Basic Attention Token or BAT is the pet project of the co-founder of the Mozilla Firefox browser, Mr. Brendan Eich. BAT, the native currency of the Brave Browser, is a project aimed at putting the internet back in the hands of its users. After the 2017 run, BAT has gained immense traction in the market.

The Brave browser has been continuously accumulating support from hundreds of established internet companies. According to BATGrowth.com, some of its long list of partners include Wikipedia, The Guardian, Washington Post and so on. It is a contender for immense growth potential.

#3: Tezos (XTZ)

Tezos, like Ethereum, Lisk or Stellar, is a blockchain platform that allows for development and customization. The platform allows for the development of applications, smart contracts, communities and much more. In the first few weeks of February, probably in anticipation of the halving event, Tezos saw a sudden 54% increase in market price in just a matter of days.

Since then, Tezos has shown great character by sustaining itself, rather than losing its value to volatility like the rest of the altcoin market. It is with confidence that we push Tezos, seeing its base layer customization capabilities, market support and ease of use.

Finally, the last two

#4: Chainlink (LINK)

In a recent estimate made by EthereumWorldNews, Bitcoin and Chainlink both have the highest number of profitable investors since the 2017 run. Investors have been happy with the potential that Chainlink has shown.

Chainlink and the team behind its development have been on the edge of their seat, periodically pushing updates and bringing in innovation in the market. It is quite safe to say that Chainlink seems a sustainable long term investment opportunity, about to show its potential through the next market cycle.

#5: Stellar Lumens (XLM)

Quite recently, the Stellar team had announced that they burned almost 55 Billion XLM from the company’s vaults. This exits to limit the circulating supply and hopefully, increase the demand for the token.

The burn event had drastically reduced the Stellar Supply, and almost instantly saw a price increase of 25%. If all goes well, the burn along with the remnants of the last bull run, Stellar is up for a historic performance increase that could rival the entire market.

See: Critical Bitcoin Indicator: BTC on Verge of Parabolic Bull Run to $50,000+

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