GUIA COMPLETO DE BITCOIN | TUDO QUE VOCÊ PRECISA SABER

If you had invested R$. . .

thousand in Bitcoin a year ago, you would have R$. . .

R$. . .

two thousand five hundred. If you had invested R$. .

. thousand in Bitcoin five years ago, you would have R$. .

. R$. .

. seventeen thousand. And if you'd invested R$.

. . a thousand ten years ago, you'd have R$.

. . a hundred and fifteen thousand.

Now look, if you'd invested R$. . .

a thousand on the day Bitcoin I was launched, in December October of two thousand and eight, you'd have R$. . .

a hundred and fifty billion today. In other words, you would potentially be the richest person in Brazil. You would be richer than Eduardo Saverin, who is the founder of Facebook.

You'd be richer than Jorge Paulo Lema, founder of BNBF. You'd also be richer than André Esteves, BTG's main shareholder. And you'd also be richer than Vicky Safra, wife of Joseph Safra, the bank's founder.

But if you've come to this video, it's because you're probably not the richest person in Brazil. In fact, you probably don't even know what Bitcoin is, how it works, whether it's safe or not, how to invest in Bitcoin. In short, you probably don't know much about this very powerful currency, which I've had in my wallet for quite a few years.

I've even made these investments publicly. In fact, the first time I bought Bitcoin was in eighteen, then I sold it and bought it again in two thousand and eighteen, and then I bought it again in two thousand and nineteen, and then I bought it in two thousand and twenty, two thousand and twenty-one, two thousand and twenty-two, two thousand and twenty-three and here we are in two thousand and twenty-four reaping some good rewards. That's why in today's video I'm going to explain literally everything about Bitcoin that you need to know right now.

I want you to leave this video with your mind blown, knowing everything about Bitcoin. And to make it easier for you, I've divided the video into seven parts. In the first part, I'll show you the main ways you can invest in Bitcoin.

In the second part of the video, I'll explain what Bitcoin is and how it works. Then, in the third part, we'll try to understand whether Bitcoin is really safe or not. In the fourth part, I'll tell you about the risks of Bitcoin, why they exist.

And then I'll show you the main Bitcoin indicators and how you can analyze them. In the sixth part, I'll show you how to store your Bitcoins correctly. And last but not least, I'll tell you what halving is, when it will happen, when it does happen and how it can make you a lot of money.

So stay with the video until the end. But first, like the video and subscribe to the channel. Without much ado, let's get straight to the first part.

How to invest in Bitcoin? There are basically three main ways to invest in Bitcoin. The first, and perhaps the simplest, is through ETFs.

ETF stands for Exchange Traded Fund. But just so you don't get too technical and don't understand anything, let's think you want to make a gluten-free coconut cake. So what do you need to make such a cake?

First of all, you'll need gluten-free flour, which will be the base of the cake. You'll need grated coconut, which will give the cake all its flavor. You'll need eggs, you'll need coconut milk and you'll need a pinch of yeast to make the cake rise.

What's the point here? In the same way that you mix all these ingredients to make a cake, an ETF mixes several assets, several ingredients, to make a single investment, as if it were a little package. So you have two options.

You can buy the ingredients and assemble the cake yourself, or you can buy the finished cake. For example, you can invest in shares in Apple, Google, Coca and various companies. Or you can invest in an ETF that will replicate the S&P Five Hundred index of the five hundred largest companies in the United States.

If you buy the Apple share, you're buying the egg. If you buy the S&P Five Hundred ETF, you're buying the finished cake. And it's exactly the same with Bitcoin.

You can go to the stock exchange and invest in HASH-XI, for example, which is an ETF where sixty-eight percent of your money is invested in Bitcoin. There are several Bitcoin ETFs here in Brazil, I'll put the names of the main ones on the screen here. But to avoid going on too long, that's the first way.

The second way you can invest is in investment funds. For example, what's the great thing about investment funds? While ETFs are passively managed, i.

e. they replicate an index, investment funds are more actively managed. And to make it easier to understand, think of it like this: with ETFs you're buying ready-made gluten-free coconut cake.

In investment funds, you're also buying a ready-made gluten-free coconut cake. What's the difference? The difference is that in investment funds it's as if the chef making the cake could change the original recipe to make the cake different.

He can add a little more coconut, less milk, more eggs. He can change the original recipe as he bakes the cake. So if you invest in an ETF that replicates one hundred percent of the cryptocurrency, your money will fluctuate in line with the price of Bitcoin.

Now, if you invest in an investment fund, it's as if you were hiring a manager who at certain times will buy more Bitcoin, then sell more, then rebalance your portfolio and make some other fine adjustments. That's the second option. The third option is to invest directly in the cryptos themselves.

To invest directly is to bake the cake yourself. You get the recipe for how you're going to make the cake, you go to the market, you buy the ingredients, you get your hands dirty. And how can you invest directly in Bitcoin?

You can open an account with a broker, which we usually call an exchange, and then you transfer some money there, and from there you start investing in Bitcoin and other cryptocurrencies. I even have a video on my channel where I invest R$one hundred in Bitcoin in practice. I'll leave the link here on the card and in the description too.

What you need to understand is that each of the three main ways you can invest in Bitcoin has advantages and disadvantages. For example, the big advantage of investing through ETFs is practicality, because you can simply log in to your broker and invest in a very simple way. The disadvantage is that you have to pay a ten percent tax on your profit.

You have to pay a management fee and you can only trade during the B-III period, from ten o'clock to six o'clock from Monday to Friday. The advantage of investment funds is professional management. Think about it, you can buy a really good cake, but if you hire a professional chef to bake it, it will probably be tastier, but it will also be more expensive.

In other words, you might make more money, but you'll have to pay a few fees to do so. So, you'll pay a management fee, a performance fee, a loading fee and so on. Now, if you want to invest directly in Bitcoin, the big advantage is literally Bitcoin's great motto, which is not your keys, not your coins.

But I'll explain. Whenever you invest in Bitcoin, you need to ask yourself the following question: do I really own my Bitcoins? And why do I say that?

Later in the video I'll explain in more depth, but just so you understand the concept behind it, whenever you invest in Bitcoin or any other crypto, you can have a private key that will have a password where only you will be able to access your cryptocurrencies. This is the safest way to invest in Bitcoin. The problem is that doing all this isn't very practical.

I have a video here on the channel where I show you in practice how to set up a cold wallet. I'll leave the link here on the card too. But you need to understand that investing directly in Bitcoin is the safest way, but it's also the most complex because of the storage of your coins.

And before you say a lot of things here. . .

Cousin, you didn't invest in Bitcoin in that video, did you? Dude, I invest in my assets publicly, as I've already said, for almost seven years now, and every month I show you what I'm doing with my money. Just search for Towards a Billion and there are tons of videos where I invest in Bitcoin in practice.

So, now that you know the three main ways to invest in Bitcoin, you need to understand what Bitcoin is and how it works. But if you really want to understand the logic behind the currency, you first need to understand the logic behind money. Nowadays, we're very unaccustomed to it.

A TED, card, Pix, boleto. . .

There are a lot of conveniences in our lives, but it wasn't always like this. In fact, for many years people didn't use cash. They exchanged goods and services directly.

So, if I have an orchard full of apples and you have a winery that produces wine, I'll give you some apples and you'll give me some wine. And so far so good. The problem starts when I've had enough of drinking wine and you only have wine to exchange with me, or vice versa.

Hence the idea of using shells, cattle and grains as primitive forms of money. But cattle don't last forever, they die. Grain doesn't last forever, it will crumble over time.

And shells, apart from breaking easily, are not scarce. You can go to the beach and find lots of shells and it's like finding infinite money. Then, over time, we began to replace shells and grains with precious metals like gold and silver.

Gold and silver had three great advantages. Firstly, durability. They don't fall apart over time.

Secondly, divisibility. You can cut them up, you can shape them into coins. Thirdly, scarcity.

Because you won't find gold or silver just anywhere. And then the years went by, countries emerged and along came a monetary system called the gold standard. The gold standard was a kind of agreement whereby for every value of currency a country had in its economy, it had to have that same value in gold.

Do you want a spoiler about this attempt? It didn't work out that well. Whenever there was a crisis, governments printed a lot of money to distribute to the population and the amount of gold no longer kept up.

This type of money is called fiat money, which is like our real. Fiat money is any money without any backing. If you have R$five in your wallet, that doesn't mean there's the same amount in gold guaranteed by Brazil.

Fiat currency works on the basis of one main pillar: trust. If you believe in Brazil, the real has value. If you don't, then the real has no value.

It's very simple. And the moment that marked the complete abandonment of the gold standard was when in nineteen seventy-one, the president of the United States, Richard Nixon, made a statement to the whole world saying that the conversion of the US dollar into gold was over. In other words, it was the end of the US dollar's link to gold.

And what does all this have to do with Bitcoin? Since coins no longer had to be backed by gold, the government started issuing a lot of money. It began to issue as it pleased.

And that's what's happened in recent years. So imagine a super-concentrated orange juice. If you add a little water, it becomes more diluted.

If you add a little more water, it gets even more diluted. If you add more water, it gets even more diluted. And if you keep adding water, there will come a time when there's too much water for too little juice.

The juice loses its flavor, it loses its value. The same thing happened with our coins. That's why all the fiat currencies in the world have lost value.

For example, one hundred dollars in one thousand six hundred and seventy-two has the same purchasing power as two dollars and seventy hundred today. One hundred reais in July of one thousand nine hundred and ninety-four has the same purchasing power as twelve reais today. Do you know what that means?

It means that every time you go to the market, your money will buy fewer things. It means that your trolley used to be full and now it gets emptier and emptier. And it means that you have to work a lot harder to buy the same amount of things as before.

And how does Bitcoin solve this problem, at least partially? With scarcity. When Satoshi Nakamoto created Bitcoin, he stipulated that there could only be twenty-one million bitcoins.

You can't make any more. And towards the end of the video, I'll explain what halving is, what it has to do with those twenty-one million bitcoins and how you can make money from it. But the point is, Bitcoin is a digital currency that is scarce, because there are only twenty-one million bitcoins.

And it's a totally decentralized currency. This means that Bitcoin is a currency that doesn't have a government or a central bank dictating the rules. The Brazilian Central Bank controls the real.

The European Central Bank controls the euro. Who controls the dollar is the American Central Bank, known as the FED. But there is no institution behind Bitcoin.

Cryptocurrencies are controlled by the users themselves, who follow the rules of each crypto. In Bitcoin, the name of the decentralized network behind Bitcoin's operation is the blockchain. Many people end up confusing Bitcoin with the blockchain itself, as if they were the same thing, but they are not.

Blockchain was a name given to a set of technologies that together formed the blockchain. So think of it this way, the blockchain is like an accounting book, a ledger, where it stores all the transactions that take place within Bitcoin on various and sundry computers around the world. Take banks, for example.

Every time you make a transaction, the bank records that transaction on its servers. In the case of Bitcoin, because it has this decentralized nature, these servers are not allocated in one place, they are spread around the world and each person who has one of these servers, which are called mining computers, they have a copy of this blockchain. So within the blockchain we store the number of transactions, how much each person's wallet has in balance and we can identify which wallet has the most Bitcoin and which has the least.

And to make it more visual for you, take a look at this image. In this image there are three simple blocks of the blockchain. The first block is called the Genesis block, because it's the first block, obviously.

And when I say block, it's as if I'm talking about a big box, where all the transactions are being put into that box and one day that box goes for verification. That's a block in the Bitcoin blockchain. Under each block we'll have the date and we'll have the hash, which is nothing more than a code generated by the system when a block is verified and all the transactions inside that box are proven to be true.

When we move on to the second block, hence the name blockchain, which means chain of blocks, this second block will also have the date of the block and will have what we call the previous hash, which is the hash code of the previous block. So these blocks are created chronologically and you can see all the transactions that are taking place in this system. Everything that has already happened has been recorded and cannot be changed.

That's why this whole blockchain system is so secure, because if you wanted to change a small comma in block two, the hash number of that entire block would change. That would change the entire sequence of the next blocks on the blockchain. So I guess that answers the question in the third part of the video.

Is Bitcoin really safe? According to this blockchain logic, Bitcoin is safe. But that doesn't mean that there are no risks if you want to invest in Bitcoin.

To tell you the truth, there are three main risks in investing in Bitcoin. The first major risk is volatility. BlackRock, which is the world's largest asset manager, has put together a table showing what has happened to the world's main assets between the years.

And just to give you an idea, in the last eleven years Bitcoin has had the highest return in the entire world in eight years. However, in the other three years, Bitcoin had an absurd fall, it was the asset that devalued the most in the world. So if you want to have some Bitcoin in your wallet, you need to have a stomach for it.

One day Bitcoin could be worth a lot and the next it could be worth only half or very little. That's the first big risk. The second risk is theft.

If you invest directly in Bitcoin through a broker and you leave your Bitcoins there, it's the broker who has the balance of your Bitcoins, not you. And what is the risk of this? The risk is that the broker could go bankrupt, as happened with FTX, Sam Bankman Friedman's broker.

And when a broker goes bust, it can take years for you to get your Bitcoins back. That's if you get them at all. So what you need to do is buy your Bitcoins through a broker and then transfer them to your custodian via a wallet.

I'll talk a bit more about this in a moment. By the way, speaking of theft, get one thing through your head. If you've been promised absurd profits, if you've been promised quick profits and if you've been promised a risk-free investment, this is a financial pyramid.

And just to give you an idea of the seriousness of the problem, more than one in ten Brazilians have already lost money in scams and pyramids. There are lots and lots of investment promises that will make you five percent a day, six percent a day, seven percent a day. The problem is that if you invest R$one hundred once with a return of seven percent a day, in five years you'll have a net worth of R$ which is forbidden in China.

Of course, each country will have a different rule and a different level of prohibition. But the fact is that even though Brazil is a country where having Bitcoin is legal, there's no guarantee that it will last forever. And I haven't added it as one of the three risks, but one thing that happens a lot is that you forget the access data to your wallet.

And if you do, there won't be a forget-my-password button like you have in your email. Be very careful. There are many cases of people who have lost not a thousand, not tens of thousands, but millions and millions of dollars in cryptocurrencies.

Well, so far you've understood how to invest in Bitcoin, you've understood what Bitcoin is, you've understood how the blockchain works, you've understood how Bitcoin security works and the main risks of investing in this currency. And now in the fifth part of the video you need to understand the main Bitcoin indicators and how you can analyze them to make more money. Without further ado, the first Bitcoin indicator is the famous Fear and Greed Index.

And if there's one thing that has never fooled me in the financial market, it's the fear and greed indicator. Just so you understand, Fear and Greed is an indicator that goes from zero to one hundred. The more optimistic and greedy people are, the closer it is to one hundred.

The closer it is to zero, the more fearful and pessimistic investors are about Bitcoin. Guess when is the best time to buy? Obviously when the market is pessimistic.

That way you have more room to buy cheap and right now Bitcoin's Fear and Greed Index is marking seventy-eight points. This means that the market is optimistic about Bitcoin. But when you're watching this video, if the number is low, that's the exact opposite of what it's representing.

So it's trading at a more salty price, so to speak. So does that mean that if it's gone up a lot or people are greedy, there's no point in buying it? No, it's an indicator.

And as the name implies, it indicates something. Just because an asset is expensive doesn't mean it can't get more expensive. But just for the sake of comparison, if we look at what has happened to this indicator in recent months, we can see that the Fear and Greed Index has been at its highest for the last twelve months.

So the market really is willing to pay more for Bitcoin. The second indicator is the Hash Rate, which is the indicator that shows how healthy the whole Bitcoin system is. The higher the Hash Rate, the more miners are mining Bitcoin, the more computing power is involved in Bitcoin and the more secure the network is.

And the Hash Rate index is very high. In fact, it's also at an all-time high. It's at US$ six hundred and twenty-nine points forty-nine million Tera Hash per second, which is the unit of measurement for this indicator.

And you know something really cool to think about? Think about gold. If you were a prospector going after gold, then out of nowhere the price of gold explodes.

Gold starts to increase in value. Then you'll have a much greater incentive to find gold, wouldn't you agree? Because it will be making more.

If before you found a quantity of gold and sold it for two hundred dollars and today you find the same quantity and sell it for three hundred dollars, it's the same effort for a much greater result. Now what if the opposite happened? If the price of gold fell?

You'd probably keep looking for gold, but interest would wane, because the premium on your effort would be lower. And just the opposite is happening. Take a look at this graph on the screen.

The yellow line is the difficulty miners have in getting more Bitcoin and the gray line is the price. Since May eighteen, the yellow line, which is the interest of the miners, has been going up and up. But if you look at the gray line, which is the price, from May of two thousand and twenty-one until January of two thousand and twenty-three, the price practically only fell.

That's quite a positive sign. It means that people are thinking long-term. And the third Bitcoin indicator is Bitcoin Wallet Sizes.

This indicator is very interesting because we can see the number of wallets with more than a thousand Bitcoins. And a thousand Bitcoins is the same as three hundred and forty-seven million dollars. And what's the point of this graph?

You can see that over time, the number of wallets with more than a thousand Bitcoins has increased a lot. But from twenty-two thousand, twenty-one thousand, even with the price going sideways and even going up, the number of wallets with more than a thousand Bitcoins decreased. In other words, this indicator is showing us that the big investors sold more Bitcoin than they bought.

And they've been realizing it little by little. The fourth Bitcoin indicator is the Meyer Multiple. The Meyer Multiple is a slightly more complex indicator, but it helps a lot in the analysis.

It takes today's Bitcoin price and divides it by the moving average of the last two hundred days. If the Multiple is above $two. fifty, it means that Bitcoin may be expensive and it may not be a good time to buy.

If the Meyer Multiple is between $ one and $ two. four, it means that it is cheaper, but perhaps still not a good time to buy. Now, if the Multiple is below R$one, investors are probably scared and then it would be a good time to buy.

And today the Multiple is exactly at R$one. forty-one. Is this a sign that it's expensive?

Not necessarily, but it doesn't indicate a bargain either. It's closer to a fair price. The fifth and final indicator is Bitcoin's dominance.

Bitcoin's dominance is the ratio between Bitcoin's market capitalization and the market capitalization of other cryptocurrencies. So, for example, when altcoins, which is any currency other than Bitcoin, rise more than Bitcoin itself, its dominance decreases. When Bitcoin rises more than the altcoins, then Bitcoin's dominance increases.

Generally, when Bitcoin's dominance is lower, this indicates a better time to buy. However, the opposite has happened in the last twelve months. Bitcoin's dominance is at an all-time high with one out of fifty-three percent.

So, in short, according to the Fear and Greed Index, the market would be optimistic about Bitcoin at this level. As the Hash Rate indicator is high, it means that there is a lot of computing power being used to mine and validate transactions on the Bitcoin network. Looking at the Bitcoin Wallet Size, this all indicates that large investors are selling more than they are buying Bitcoin.

The highest multiple today is at one point forty-one, so it's an indicator above one, which would be the fairest price. And below two point four, which would be the most expensive price, so it's not a totally bad price. And if we were to look at Bitcoin's dominance, Bitcoin has grown a lot in relation to other cryptos over the last twelve months.

And that's a more stretched price indicator. Based on these indicators, let us know in the comments whether or not you think it's a good time to buy Bitcoin and cryptocurrencies for your wallet. By the way, you can also leave what you're buying below, because I'm always curious to know.

This is a big laboratory for me. Now listen to what I have to say. No matter how many times you watch this video in its entirety, not everyone will learn how to invest correctly in crypto.

Not everyone will know how to analyze crypto indicators. Not everyone will be able to invest in crypto. Not everyone will know the right time to sell their crypto.

And not everyone will succeed with Bitcoin or any other cryptocurrency. It was with this in mind that I sat down with the Finclass team and we came up with a very interesting idea. What if, instead of just teaching people how to invest, we also gave investment recommendations?

Why should I only teach you how to catch a fish if I can literally hand you a clean, cut fish with a little Sicilian lemon on the plate? So we decided to combine Spit with Finclass and today within Finclass you have a series of investment recommendations from our analysts. You can access a portfolio of real estate funds, a stock portfolio, a fixed income portfolio, a cryptocurrency portfolio and you can know exactly how much to invest, how to invest, up to what price to pay for an asset and at what price to sell.

So I'm literally putting the solution to your investments in your hands. You don't have to do anything, just follow the Finclass portfolio and have the minimum knowledge to avoid making a mistake, please. So let me give you a message.

Finclass' anniversary is coming up, on November tenth. You're going to have access to a lot of bonuses, you're going to win an in-person Findei event, which is the biggest finance event in the world. You'll get a recommended portfolio, where you can follow the recommendations of our analysts, invest your money a thousand times better and you'll have access to all this with an annual discount.

Look, the offer is crazy good and everything I'm telling you makes sense to you. Just click on the link in the description. Let's get back to the video.

Remember I said that you can buy your Bitcoins through a broker and then transfer them to a wallet? What's the point here? When you have a credit card or physical cash, where do you keep it?

You keep it in your wallet. It's the same with Bitcoin. To store your Bitcoins properly, you need a crypto wallet.

There are seven different types of wallets. But before I delve into each of the seven, you first need to understand the difference between a wallet and an exchange. A wallet is a device where you store the information that gives you access to the cryptocurrencies stored on the blockchain.

So Bitcoin itself won't be stored in your wallet. There you will store the information that gives you access to your Bitcoins. The exchange, on the other hand, is a broker where you will trade the cryptocurrencies.

Obviously, you can even leave your cryptocurrencies at the exchange itself, but if you do that, it's the exchange that's taking custody of your assets. So, as I said before, if the broker has any problems, that's it. An exchange is not a wallet.

So here we go. The first type of wallet is a hot wallet. Hot wallets are basically a wallet that is connected to the internet.

So they're going to be more practical than cold wallets, but they're usually, because they're connected to the internet, more vulnerable to attack. The second type is the mobile wallet. These are wallets that you can download as if they were an app on your cell phone, but because it's a hot wallet, it's very practical.

But it's a more vulnerable type of wallet. Not to mention that here in Brazil it's quite common for someone to steal your cell phone. So you need to be vigilant.

The third type of wallet is the web wallet. This is a type of wallet that you can access via your own browser. All you have to do is go to the wallet page and enter your login and password.

It's very simple, it's very practical, but it's also connected to the internet, so it's a bit more dangerous. The fourth type is desktop. Desktop wallets are like a program that you download and install on your computer's hard drive.

The nice thing about this one is that the data is stored on your computer and not on the internet. So they're safer than mobile and web crypto wallets. But you could also get a virus on your computer or something that could steal your data.

The fifth type of wallet is cold wallets. I have a video here on the channel showing how you can set up a cold wallet, how the whole logic of it works in more depth. But to summarize here, cold wallets are wallets that are not connected to a global computer network, in other words, they are off the internet and because of this they end up being more secure.

There are two types of cold wallets, hardware wallets and paper wallets. Hardware wallets are a physical device on which you can store your bitcoins. It's almost like a USB stick.

Obviously, it's more secure, because you're not connected to the internet, but it's not practical at all. To tell you the truth, it's a lot of work to set everything up, but it's the safest. The other type of cold wallet is the paper wallet.

It's basically a piece of paper printed with private and public keys. Nowadays there are several programs where you can generate a paper wallet. The problem is that your computer may have been infected with a virus at the time you created your wallet and there could be a problem.

So it's not the safest way of all. That said, my suggestion to you is that if you have a slightly higher value in bitcoin or cryptocurrencies, it makes more sense to have a hardware wallet and protect it as well as possible. Now, if you have almost no value in bitcoin and just want to expose yourself in some way, you can change the price of the currency through an ETF or a fund that might make more sense for you.

Now, back to the point. In this last part of the video, I want to tell you a bit about a crazy thing that happens about every four years and historically causes the price of bitcoin to explode. It's called halving.

Every four years, after making those nice upward slingshots, bitcoin goes through a strong period of correction, where it usually gives back part of the accumulated gains. It happened in eighteen, two thousand and eighteen and at the end of two thousand and twenty-one. Back in December of two thousand and twenty-one, bitcoin hit sixty-four thousand dollars and then it started to fall a lot.

It went from US$ sixty-four,zero to US$ fifteen,zero in a few months. That's a drop of seventy-seven percent in less than a year. And why am I showing this?

Because every time a big drop in bitcoin happens, an even stronger upward movement follows. It was like that in eighteen fifteen, a rise of over nine thousand percent. It happened in two thousand and nineteen, when bitcoin rose by more than three thousand percent.

And the next boom cycle began in twenty-three. We are just now experiencing the exact moment when bitcoin stopped its downward cycle and started a new upward run. It's no wonder that in two thousand and twenty-three it rose by more than one hundred and fifty percent.

That cycle has already begun. And what does halving have to do with it? Basically, bitcoin follows a four-year cycle because of an event called halving.

To understand this concept is quite simple. Think of our real, for example. The real loses value over time because every year the government tends to issue more and more currency.

This ends up generating inflation, which consequently devalues the currency. But bitcoin, since it was created in two thousand and eight, has had a mechanism put into its algorithm that controls this inflationary effect, which would be caused by the issuing of new bitcoins. And to reduce this effect of loss of value over time, bitcoin is already programmed to halve the issuance of new coins from time to time.

This happens approximately every four years. In other words, this reduction that happens every four years, called halving, last happened in two thousand and twenty, when issuance fell from twelve point five bitcoins per mined block to just six point twenty-five. And now, at the end of April two thousand and fourteen, this process should repeat itself and the issuance of new coins will drop to three point one two five.

In two thousand and twenty-eight the same thing will happen and so on. And why is halving so important? Because if the supply of bitcoins decreases with each halving and demand continues to grow, then bitcoin becomes an inflationary asset.

In other words, there's little supply, there's less and less, the supply decreases, the demand keeps increasing and the consequence is that the price goes up. And how does this whole logic move the bitcoin cycle? So far we've had three halvings and after each of these halvings bitcoin started a strong upward run.

Just to give you an idea, in the last halving of two thousand and twenty, bitcoin went from around three thousand dollars to sixty-eight thousand dollars in a short space of time. That's an increase of over two thousand percent. You would have multiplied your investment by twenty.

So it's as if you invested a thousand reais and in a few months your investment reached twenty thousand reais. For someone who had ten thousand reais, you'd have two hundred thousand reais. And I'm only talking about bitcoin, which is the most conservative of the cryptocurrencies.

After more or less a year and a half, this upward cycle ended and was followed by a period of strong downturns, known as the crypto winter, when the market cools down. The crypto winter also lasts around a year and a half, if you look historically, and after the low comes a period where bitcoin becomes more sideways. Prices fluctuate less and then we're back to another halving and this whole cycle starts all over again.

But just a few disclaimers here. Firstly, it's very difficult to know exactly which part of the cycle you're in. You can even get a feel for it from the indicators I've shown in this video, but one thing I've learned in the market is that a lot of things rise on rumor and fall on fact.

So we may be getting close to halving, which will be in April, but as the market has already risen a lot in recent months, you can't know exactly what's going to happen. And secondly, people usually try to find out more about bitcoin at the wrong time. Once the crypto has gone up a lot, everyone wants to buy some.

So be careful not to let emotion take over your pocket. So that's it, cousins. In today's video we talked about the main ways to invest in bitcoin, what bitcoin is and how it works, whether bitcoin is really safe or not.

We talked about the risks of bitcoin. Then we talked about the main indicators, how to store your bitcoins correctly. Finally, we talked about halving and how it can help you make money.

Send this video to that friend of yours who wants to know a bit more about crypto and let us know in the comments if you already invest or if you intend to do so with this halving coming up. I'm going to stop here, a big hug, until the next video and bye!