![Coinspeaker After Bitcoin Halving BTC Will Be More Scarce than Gold for First Time Ever, Brian Kelly Says The chief executive officer (CEO) of digital currency investment firm BKCM LLC Brian Kelly says that Bitcoin (BTC) will be more scarce than gold after the halving. Speaking to CNBC’s Fast Money, Kelly discussed the event expected in April this year, talking about the asset’s scarcity. Bitcoin Scarcity to Rival Gold’s In his explanation, Kelly said historical data shows that Bitcoin performs best in the 12-16 months after a halving. However, he warned that Bitcoin may not repeat history this time because prices are higher, and production will halve. Explaining that this is advantageous for Bitcoin’s scarcity, Kelly said: “This time might be different because the price of Bitcoin is higher [and] we now only have 900 Bitcoin a day that come out [and] that gets cut in half. It’s not a lot of Bitcoin. But, what it does do is it makes Bitcoin more scarce than gold. So, for the first time in history, you have an asset that is more scarce than gold.” Kelly explains the scarcity using Bitcoin’s stock-to-flow (S2F) ratio, a model created by popular BTC analyst PlanB. The ratio is calculated by dividing Bitocin’s circulating or existing supply by annual production. Kelly points out that compared with gold’s S2F, Bitcoin will become more scarce. Bitcoin already set a new 2023 all-time high (ATH) on Monday when it hit $42,100. As of this writing, BTC is already at $43,707, climbing 5% in 24 hours and more than 14% in seven days. Interestingly, there are similar gains in Ether (ETH) and Solana (SOL). While ETH has jumped over 10% in seven days, SOL climbed nearly 7% in 24 hours. Bitcoin Rally May Continue as Market Anticipates ETF Decision Bitcoin’s rise may be tied to the possibility of the United States Securities and Exchange Commission (SEC) approving a spot Bitcoin ETF in January. The SEC has met with representatives from several ETF applicants, including Grayscale and BlackRock, to discuss their ETF applications. Even though the Commission has repeatedly delayed a decision on approval or rejection, the general consensus is that an approval is very likely. An approval would be interesting because SEC Chair Gary Gensler is a very vocal critic of cryptocurrencies who seems to be behind a lot of the enforcement action happening in the crypto space. The SEC has also avoided approving any proposals received over the last decade, citing fraud and market manipulation as concerns to be addressed. Bitcoin has so far returned 163% in year-to-date (YTD) gains. The rally in the world’s largest cryptocurrency may be spreading into gold as it is also attracting investors. Buyers usually flock to gold during times of economic or geopolitical uncertainty, which sometimes pumps the price of the yellow metal. On Sunday, the price of gold briefly hit $2,100, a new all-time high. Although it has now fallen below $2,050, analysts believe that gold might be able to keep its price above $2,000. next](https://geektrendnews.com/wp-content/uploads/2023/12/Bitcoin-Halving-Golds-Scarcity-Surpassed-at-Last-300x200.jpeg)
Bitcoin’s Rarity Surpasses Gold: A New Era for Investors
The crypto market has always been one of dynamic change and unprecedented trends. Often compared to gold, Bitcoin has taken center stage once more after undergoing its halving event – a phenomenon that cuts its supply generation in half, bolstering its scarcity. With insights from the digital currency investment expert Brian Kelly, let’s delve into why, after the Bitcoin halving, BTC is on its path to become even more scarce than gold and how you can make money with crypto.
| Key Takeaways |
|---|
| Bitcoin’s scarcity is increasing post-halving, potentially surpassing that of gold. |
| Investing in cryptocurrency, particularly in Bitcoin, requires understanding market trends and the impact of events like the halving. |
| Professional insight can help navigate the volatility of the crypto market and open opportunities for substantial profits. |
The Significance of Bitcoin Halving
Among the numerous strategies for how to make money with crypto, keeping an eye on developments like the Bitcoin halving is essential. For those intrigued by where to buy Bitcoin or how to buy Bitcoin, it’s vital to acknowledge the halving’s significance. This event occurs approximately every four years and as of April this year, according to BKCM LLC’s CEO Brian Kelly, we are on the brink of witnessing Bitcoin becoming more scarce than the ever-esteemed gold.
What makes this event so impactful is the resultant decrease in Bitcoin’s new supply, thereby elevating its stock-to-flow (S2F) ratio. This ratio measures the current stock of Bitcoin against the flow of new production. The halving event triggers a significant decrease in the flow part of the equation, leading to a higher S2F ratio, indicating increased scarcity.
Bitcoin’s Competing Scarcity with Gold
The pursuit to earn money from crypto finds a new edge as Bitcoin’s scarcity starts to rival that of gold’s. Investors seeking how to get rich with crypto or how to trade crypto without fees might find themselves more inclined toward Bitcoin, thanks to its burgeoning rarity. According to Kelly’s analysis, post-halving adjustments may for the first time position Bitcoin to be scarcer than gold, a notion propelled by Bitcoin’s advancing S2F ratio.
Historical data echoes a prosperous aftermath for Bitcoin post its halving events, typically showcasing a bullish market within 12-16 months following the occurrence. However, new crypto investors pondering how to cryptocurrency should heed Kelly’s warning that the upcoming cycle may differ due to already existing higher prices and the reduced daily production of Bitcoin.
How to Invest in Bitcoin and Crypto Effectively
Understanding the intricacies of how to invest in crypto and make money becomes pivotal as Bitcoin ascending in scarcity hints at a potential price surge. Psyched to uncover how to make money crypto mining? This could be the golden time! Seasoned investors or users interested in platforms like Robinhood or Coinbase always seek the best opportunities; therefore, the post-halving period should be marked in their investment calendars.
If you’re a newcomer contemplating how to get into crypto investing or desiring to learn how to buy crypto stock, starting with a foundational understanding of market cycles and events can be beneficial. With platforms like Binance or Coinbase paving the way, entering the crypto realm is more accessible than before. For those wanting to leap forward, learning how to use coinbase or how to trade on Binance for beginners could be the first steps towards successful trading.
Factors Influencing Bitcoin’s Surging Demand
Several factors are contributing to Bitcoin’s growing demand. Apart from the halving phenomenon, there’s the anticipated decision of the United States Securities and Exchange Commission (SEC) on a spot Bitcoin ETF. This has caused much excitement in the crypto community as an approval could lead to a substantial increase in institutional money flowing into Bitcoin. It’s essential for those learning how to crypto invest to stay updated with these regulator movements as they significantly affect market sentiment.
For enthusiasts figuring out how to start crypto trading or how to start with cryptocurrency trading, keeping an eye on current events and their implications is important. The potential SEC decision is particularly crucial as the approval of a Bitcoin ETF could diminish the inconvenience of investing in physical Bitcoin, thus appealing to a broader range of investors and potentially boosting the Bitcoin price markedly.
Investment Strategies for Post-Halving
Once you’ve grasped the essentials of how to start investing into crypto and recognized the opportunities post-halving, formulating an effective investment strategy is the next agenda. Whether you’re delving into how to make money investing in crypto or exploring the depths of how to trade crypto on Coinbase, it’s essential to take the scarcity factor into account when devising your investment approach.
One effective strategy post-halving is to consider the long-term growth potential of Bitcoin, especially as its scarcity increases. For those exploring how to buy into cryptocurrency, purchasing Bitcoin post-halving and holding it could be a potentially lucrative long-term investment strategy. Remember, the intent here is to capitalize on the expected price appreciation as Bitcoin becomes rarer than gold.
Navigating Bitcoin and Crypto Market Volatility
The crypto market is known for its volatility, which can intimidate those interested in how to invest on crypto currency or how to make money mining crypto. To effectively navigate this, keeping an eye on market trends and analysis is imperative. Pioneering investors have found lucrative returns through methods such as scalping crypto or engaging in sophisticated strategies like using trading bots.
Despite its unpredictable nature, those learning how to make cryptocurrency for free or those already dabbling in how to use crypto to make money can find stability by staying abreast of market analytics and industry news. Be it following platforms like FXStreet crypto or engaging with crypto communities on Reddit, these resources offer invaluable insights that can help decimate the uncertainties of the market.
Potential Impacts of Bitcoin’s Scarcity on Other Markets
Bitcoin’s increased scarcity doesn’t just influence the crypto market; its effects spill over to other asset classes. Historically, gold has been the go-to safe haven during economic or geopolitical uncertainties, but Bitcoin’s newfound rarity might draw more investors away from traditional assets. If you’re learning how to trade digital currency or curious about how to trade futures crypto, consider the potential correlations between Bitcoin’s market behavior and other commodities such as gold.
The strategic investor probing how to trade digital currency might also evaluate Bitcoin’s scarcity in relation to other popular cryptocurrencies like Ethereum or Solana. With their price movements typically echoing Bitcoin’s, understanding the broader context of scarcity and its effect on crypto assets can be an invaluable skill.
Opportunities and Risks for Bitcoin Investors Post-Halving
Every significant event like the Bitcoin halving comes with its set of opportunities and risks. For keen investors researching how to buy and sell cryptocurrency for profit, the post-halving period presents a unique opportunity for potential profits, given the increased scarcity of Bitcoin. However, it’s critical to also consider the risks associated with investing in a more volatile and unpredictable market.
Those weighing up how to purchase digital currency or figuring out how to make money trading crypto futures should consider balancing their portfolios to mitigate these risks. Diversifying investments across different cryptocurrencies and asset classes can help manage the risk while providing a chance to capitalize on the scarcity-induced bullish market of Bitcoin.
Conclusion: Embracing Bitcoin’s Evolution in the Investment Landscape
As Bitcoin matures and evolves, so does its role in the investment landscape. This innovative cryptocurrency, once known for merely levying a challenge to traditional currency and payment methods, is now setting unprecedented benchmarks in scarcity and value storage. For those engaging in how to trade on crypto exchanges or inquisitive about how to trade crypto without fees, the evolving dynamics surrounding Bitcoin’s scarcity offer exciting new prospects for wealth creation.
Undoubtedly, as we witness Bitcoin becoming more elusive post-halving, the potential it holds for reshaping investment strategies is immense. Whether you’re an experienced investor making sense of how to earn money from crypto or a curious learner probing how to start cryptocurrency business, the post-halving era of Bitcoin is not to be underestimated. Embrace the opportunity, navigate wisely, and you may be part of a revolutionary shift that could redefine asset scarcity and value for generations to come.
The information presented in this article is for educational purposes only. Always conduct your own research before investing in cryptocurrency.
