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Crypto Banter Warns: You’re Not Ready for the Bitcoin Halving – Here’s How to Prepare
- Neuner predicts Bitcoin’s price will stay above US$60,000 post-halving due to increased mining costs.
- He highlights the Bitcoin ecosystem’s growth, offering significant return opportunities, especially in memecoins and ordinals.
- Caution advised on investments like memecoins due to their speculative nature and potential lack of underlying value.
The Bitcoin halving is upon us – just ten days until the number of new BTC mined is slashed in half, a process central to how Bitcoin works. But, according to Ran Neuner, the host of popular show Crypto Banter, people are not prepared for it. And it’s not only about the technical side, for example the oncoming supply being reduced but also about some other important implications.
In a recent video Neuner discussed the implications of the Bitcoin halving, specifically that the significance extends beyond just the increased costs for miners. While he detailed how the halving effectively doubles the production costs for miners by reducing their Bitcoin rewards, he also emphasised the broader market dynamics.
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Bitcoin Not Going to Drop Below US$60k Says Neuner
Neuner links Bitcoin’s market price to mining costs, noting it historically stays above production costs, except briefly during COVID. Post-halving, he predicts Bitcoin won’t fall below US$60,000 (AU$90,000) due to higher electricity costs.
Bitcoin has never gone below the electricity cost of production, except […] during COVID and this was for a very short period of time. And so, we can kind of say that if this holds true then effectively, we may not see Bitcoin under $60,000 again after [the] halving.
Ran Neuner He suggests Bitcoin’s future price must exceed previous levels for miner profitability, based on a four-year average analysis. This indicates the halving may establish a new price floor for Bitcoin, driven by rising mining expenses, potentially leading to a price increase to maintain miner profitability.
Position Yourself for Success Post Halving – Here Is How
So, what can investors do right now?
Neuner advises adding Bitcoin to portfolios, anticipating strong performance post-halving due to its price needing to stay above that mentioned level. He points to the growth of the Bitcoin ecosystem, suggesting it offers opportunities for significant returns, especially noting recent surges in specific projects and the overall BRC-20 market cap.
For a long period of time you can expect really good performance from Bitcoin. In this halving we’ve got a whole flourishing incredible Bitcoin ecosystem for you to make life-changing returns on.
Ran Neuner However, he cautions that this ecosystem is young and risky, with limited “safe” investment options, leading investors towards memecoins and ordinals as current primary investment avenues within the Bitcoin ecosystem.
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If I’m going to go play the Bitcoin ecosystem, then a large amount of what I actually do is I’m going to be playing memecoins or ordinals, which is like a kind of a memecoin.
Ran Neuner But you want to be careful buying any of Neuner’s tips; as he admits himself, there is very little – if any – underlying value in memecoins, and people should know when to exit.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
