We are coming up fast on the next major milestone for Bitcoin – something that is likely to trigger a massive rally…
It might sound simple, but the last time this event happened, it sent Bitcoin soaring to $20,000.
It's called "the halving." It refers to how many coins miners are rewarded. When Bitcoin launched in 2009, miners received 50 bitcoins (BTC) per block that was mined. The reward has been halved two times, making it 12.5 BTC now. Come May 2020, that will be cut to 6.25 BTC.
The reason for the halving is that the Bitcoin supply is finite – there will only be 21 million coins in total. The halving lengthens the time it takes to get there. With halvings occurring once about every four years, the last bitcoin won't be mined until 2140.
Recently, a new school of thought has surfaced, saying this milestone will actually cause the price to fall. But don't listen to analysts who say this. In our latest Crypto Recap, Money Morning's crypto expert, Dave Zeiler, tells us why history will repeat and the halving will drive the price higher. More importantly, he lays out when the next rally could happen.