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Bitcoin Loans: How to Protect Yourself From the Next Halving Event

Anthony Cerullo
March 20, 2020
Bitcoin loans, borrow BTC, bitcoin loan, crypto lending platform, FinTech

Judging on past Bitcoin (BTC) halving events, the general consensus is the next halving will also result in a price increase for the world’s most popular cryptocurrency. However, what if the price moved in the other direction? While YouHodler is of the belief that this will be a positive event for the community, we still want to weigh all possible options so we can deliver you with the best possible services.

Bitcoin loans, halving and long term HODLing

It’s important to realize that HODLing is a long term strategy and for those taking part in this, be patient. The price of BTC will not skyrocket overnight after the halving but it does have a tendency to rise slowly throughout the course of the market cycle. This current market cycle is not expected to complete until 2020. Until then, you may see many signs that point to a bearish market but it’s important not to sell during those times. Right now, the market is perfect for HODLing and even better for entering.

Bitcoin loans can help you get instant access to cash when you need it without having to sacrifice your Bitcoin. Alternatively,y they can help you stockpile more crypto for when the positive results of halving eventually show themselves to us. Judging by the first and second BTC halving events, it’s a safe bet that we will see a price increase. It just may take a little longer than desired.

Peter Brandt Says Bitcoin halving is overrated

On the other side of the spectrum, we have some Bitcoin doubters like Peter Brandt. The world-renowned crypto trader believes the impact of the upcoming BTC halving event is grossly overrated. In a recent Tweet, Brandt explained that he thinks the daily trading volume of BTC is the real supply. Hence, a daily reduction of mined BTC is equal to around 2/100th of 1% of the real supply. Is there truth to his words? Perhaps.

If the reduction of the new supply from halving is considered as a percentage of the total real supply of Bitcoin, the numbers are not so remarkable. Brandt believes the daily trading volume of BTC is not its real supply with many Twitter users arguing against that logic. 

Bitcoin bears and bulls debate over halving outcome. Brandt pushing bearish Bitcoin sentiment surrounding halving event

While some other notable figures like Edward Snowden are showcasing a more bullish sentiment towards BTC, Brandt is not so confident. Giving the recent stock and gold market collapse, Brandt sees Bitcoin possibly dropping down to $1,000. Even Mike Novogratz, well-known Bitcoin bull and CEO of crypto bank Galaxy Digital said that “bitcoin is a confidence game...and it appears global confidence in just about anything has evaporated.” But a bearish market should not always be seen as a bad event. Even then there are opportunities for profit.

Bitcoin loans can help you profit regardless of market conditions

As stated earlier, YouHodler believes BTC halving will probably result in a positive price movement eventually. However, Bitcoin loans can help you profit regardless of market conditions. In a bear market or bull market, Bitcoin loan can help you:

  • Acquire more capital to invest in stable assets
  • Use altcoins as collateral for a Bitcoin loan to acquire more Bitcoin when it’s cheap
  • Borrow BTC to Turbocharge BTC and multiply your assets
  • Borrow BTC to put in YouHodler Bitcoin Savings Account and earn monthly interest
  • Borrow BTC for opening a short position on YouHodler (COMING SOON)

Bitcoin loans have a variety of purposes and benefits. So before the halving event happens in May, make sure you are adequately prepared. 


About the Author
YouHodler Blog Editor

Senior Content Manager/Editor of the YouHodler blog. Connect with him about writing techniques, cryptocurrency, and music.

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