What is BTC Halving and Will Affect Your Funds on YouHodler?
Coming soon in 2020, the third “halving” in Bitcoin (BTC) history will take place. So for those that don’t know, let’s explore what BTC halving actually is, how it will affect your portfolio and why you should use crypto loans to maximize your potential earnings from this event.
BTC halving; what is it and why should you care?
If you’ve ever bought BTC, mined BTC or got a bitcoin crypto loan, you’ll be affected by the upcoming BTC halving in one way or another. Simply put, Bitcoin halving decreases the amount of BTC rewarded by 50% to miners who discover a new bitcoin block. All bitcoin transactions are recorded on these blocks, which make up a smaller piece of the larger blockchain. To discover a new block, miners solve complex mathematical equations to record transactions and are rewarded for doing so. As more miners compete to do this, the difficulty of solving the problem must increase
How will BTC halving affect your crypto loans
Historically speaking, the halving of bitcoin miner rewards has a positive effect on the price of BTC and the market overall. Bitcoin is set up in a way that only 21 million coins can be mined. Hence, the halving is put in place to prevent inflation. Leading up to the last halving in 2016, we witnessed a slow but consistent increase in BTC price for about a year prior. At the time of writing this article, we are experiencing yet another rise. BTC halving is certainly one factor for this bullish behavior, but there are other positive signs to monitor as well.
"If you want to maximize your earning potential before the halving date of ~ May 9, 2020, using a lending platform like YouHodler would be a good place to start."
No better time than now to use crypto loans
When the market is on a bull run, there is really no better time to use a lending platform. A crypto credit line, in this case, ensures you get cash to further leverage your portfolio virtually for free. This is because certain coins are rising at rapid rates, hence covering any interest rates incurred on YouHodler.
YouHodler's Turbocharge feature for example can be a simply way to multiply crypto holdings if executed correctly. It’s also a great opportunity to utilize YouHodler’s new “LTV increase feature.” By taking a loan with a low LTV, waiting for the market to rise and then increasing LTV on the same loan, users can get more cash for their already opened loans without having to increase their collateral amount.
Crypto loans: Will history repeat itself?
As previously stated, the last two halvings resulted in slow and steady growth leading up the date. Afterward, they also caused bitcoin bull runs that saw all-time highs in 2013 and 2017 respectively. With the market’s current situation, it’s looking like we’re in for another positive movement for Bitcoin and some of the most popular altcoins.
Every day, an instant BTC loan is worth more on YouHodler, giving you more cash to hedge, and leverage your assets. Visit us today to learn more about crypto lending and how it is a diverse tool for crypto enthusiasts in all market conditions.