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Author Topic: Implications of BTC halving on a current and running DCA investment.  (Read 59 times)
Cryptomultiplier (OP)
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May 15, 2023, 05:02:22 PM
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Bitcoin halving is likened to the network's version of a cost -of- living adjustment. Following BTC core infrastructure of being a deflationary asset, hence the one why of a halving.
The next expected date for the Bitcoin halving is in May 2024.
Miners will have their fees reduced in half for same work and effort they put in now.
This is a way to curb inflation as raising taxes is for fait.
The market during the time within 3-6months may be expected to be bullish following the halving and is a time for investors too to be rewarded, mostly if they considered taking advantage of the low cost entry points.
This halving is also a great initiative to ensure that all the 21 million BTC is exhausted at the right time stipulated in 2140, and not sooner than that.
By creating a scarcity of BTC, thus, the fulfilment of the ideal that it is a deflationary asset will be effected, as the amount of new BTC created will be reduced.
This will cause an economic demand and supply chain that would impart the market.

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https://www.binance.com/en-NG/feed/post/216100

Quote
These miner rewards are what dictates the inflow of new bitcoins in circulation. So when these rewards are cut into half, the inflow of new bitcoins reduces. That is where the economics of demand and supply kicks in. While the supply shrinks, the demand varies (increases or decreases) and the price changes accordingly.

Visit source link:
https://www.livemint.com/money/personal-finance/what-is-bitcoin-halving-and-will-it-affect-the-rate-11610295621496.html

1. As an investor in cryptocurrency, with a current DCA plan being followed through, my overall funding for using this strategy should end in 3years, which is 2years just after the next BTC halving, stipulated in May 2024, what are some implications I should expect on my investment after the halving?

2. What becomes of the the fraction of funds I have budgeted to invest, will it be affected in a way that I have to increase it, or reduce it or it isn't affected at all?

3. What best decisions can be advised to be taken during the period?

Zaguru12
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May 15, 2023, 09:54:02 PM
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1. As an investor in cryptocurrency, with a current DCA plan being followed through, my overall funding for using this strategy should end in 3years, which is 2years just after the next BTC halving, stipulated in May 2024, what are some implications I should expect on my investment after the halving?

2. What becomes of the the fraction of funds I have budgeted to invest, will it be affected in a way that I have to increase it, or reduce it or it isn't affected at all?

3. What best decisions can be advised to be taken during the period?

Base on the past occurrence the next bitcoin halving will be in April 2024. It is not that bad to set a time on when to collect profits and pull back a bit, if your bitcoin isn’t for longer term investment, but I am curious to why you chose to years after halving. Base on past occurance bitcoin breaks the ATH highs during the bull run which in the past usually happens a year after halving and the second year after it the bitcoin price usually fluctuates more then.

There is no specific amount that should be set for bitcoin. Even the DCA method is just to reduce the losing percentage, but there are no certain amount for DCA. You can just do DCA base on the amount you have to invest at that time and not necessarily oblige to invest same amount throughout the DCA period. There are times you can just invest small and their time you will increase it. Invest just what you can afford to lose at any period of Time

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