BITCOIN HALVING INTRO

What is a ##BitcoinHalving?

• For every block a miner adds to the blockchain, he or she is rewarded with a certain amount of newly-created Bitcoin.
• There is also a finite number of Bitcoins that can ever be created.
• In order to extend the life of Bitcoin and ensure that it remains a deflationary asset, Satoshi Nakamoto wrote into Bitcoin’s code that the supply of new BTC awarded to miners is halved every 210,000 blocks, or roughly every 4 years.

When was the last ##BitcoinHalving?

• The last Bitcoin Halving took place on May 2020 which caused the block reward to fall from 12.5 new Bitcoin created to 6.25 new Bitcoin created.

Bitcoin Halving ##Chart with Dates

• The best way to gauge what effect the new halving will have on price is to look at a price chart with all previous halvings demarcated.

##BitcoinHalvingHistory

• Pre-Halving Era: January 9th, 2009 to November 28th, 2012. Block Span: 0 to 210,000. Block Reward: 50 BTC per block mined.
• 1st Halving Era: November 28th, 2012 to July 9th, 2016. Block Span: 210,000 to 420,000. Block Reward: 25 BTC per block mined.
• 2nd Halving Era: July 9th, 2016 to May 11, 2020. Block Span: 420,000 to 630,000. Block Reward: 12.5 BTC per block mined.
• 3rd Halving Era: May 11, 2020 to April 2024 (expected). Block Span: 630,000 to 840,000. Block Reward: 6.25 BTC per block mined.

Bitcoin stock to flow ##model

• In addition to supply and demand considerations, there’s another popular economic model that has relevance to any discussion of the halving.
• The Stock-to-Flow Model has recently gained popularity as a means of projecting Bitcoin’s price.
• This model tracks the ratio between existing supply (stock) and the rate of new issuance (flow).
• This is essentially another way to measure scarcity.

The next Bitcoin Halving

• The next Bitcoin halving is generating buzz for its potential to significantly impact Bitcoin’s value and the broader crypto market.
• This event will cut the block reward from 6.25 to 3.125 Bitcoins, reinforcing the concept of Bitcoin’s scarcity and its appeal as a digital store of value.
• Historically, halvings have led to bullish trends in Bitcoin’s price, and many in the crypto space are eyeing 2024 with high expectations.