Bitcoin Logarithmic Growth - Halving Event Explained
An update on the BLX (BraveNewCoin Liquid Index for Bitcoin) on the 2W timeframe from last year's chart. You can find last year's analysis in the description below.
In Bitcoin's short 12-year life span, it's had 3 halving events:
1st Halving: 11/28/12
2nd Halving: 7/9/16
3rd Halving: 5/11/20
What is a Bitcoin Halving?
Every 210,000 blocks mined, or about every four years, the reward given to Bitcoin miners for processing transactions is cut in half. This cuts in half the rate at which new Bitcoin is released into circulation. This is Bitcoin’s way of using a synthetic form of inflation that halves every four years until all Bitcoin is released and is in circulation.
This system will continue until the year 2140. At that point, miners will be rewarded with fees for processing transactions that network users will pay. These fees ensure that miners still have the incentive to mine and keep the network going. The idea is that competition for these fees cause them to remain low after halvings are finished.
In 2009, the reward for each block mined was 50 Bitcoins. After the first halving it was 25, then 12.5, and on May 11th, 2020 it became 6.25 Bitcoins per block. Imagine if the amount of gold mined out of the earth was cut in half every four years. If gold’s value is based on its scarcity, then a “halving” of gold output every four years would theoretically drive its price higher.
The 1st Halving Event saw a 10313% gain, 371 days after the halving creating a new ATH @ $1,165.89
The 2nd Halving Event saw a 3138% gain, 518 days after the halving creating a new ATH @ $19.154.13
The 3rd Halving Event should see a 6725% gain, 444 days after the halving creating a new ATH @ $552,455.38
This upwards move after the halving is already starting to play out, and should see it come to fruition nearing the end of 2021. The global market cap just crossed the 1T mark, and Bitcoin sitting at a 754B market cap would be the 7th biggest company in the world. Right now, we're in the beginning of 2017 again and the best is yet to come!
"History doesn't always repeat, but it often rhymes" - Mark Twain
In Bitcoin's short 12-year life span, it's had 3 halving events:
1st Halving: 11/28/12
2nd Halving: 7/9/16
3rd Halving: 5/11/20
What is a Bitcoin Halving?
Every 210,000 blocks mined, or about every four years, the reward given to Bitcoin miners for processing transactions is cut in half. This cuts in half the rate at which new Bitcoin is released into circulation. This is Bitcoin’s way of using a synthetic form of inflation that halves every four years until all Bitcoin is released and is in circulation.
This system will continue until the year 2140. At that point, miners will be rewarded with fees for processing transactions that network users will pay. These fees ensure that miners still have the incentive to mine and keep the network going. The idea is that competition for these fees cause them to remain low after halvings are finished.
In 2009, the reward for each block mined was 50 Bitcoins. After the first halving it was 25, then 12.5, and on May 11th, 2020 it became 6.25 Bitcoins per block. Imagine if the amount of gold mined out of the earth was cut in half every four years. If gold’s value is based on its scarcity, then a “halving” of gold output every four years would theoretically drive its price higher.
The 1st Halving Event saw a 10313% gain, 371 days after the halving creating a new ATH @ $1,165.89
The 2nd Halving Event saw a 3138% gain, 518 days after the halving creating a new ATH @ $19.154.13
The 3rd Halving Event should see a 6725% gain, 444 days after the halving creating a new ATH @ $552,455.38
This upwards move after the halving is already starting to play out, and should see it come to fruition nearing the end of 2021. The global market cap just crossed the 1T mark, and Bitcoin sitting at a 754B market cap would be the 7th biggest company in the world. Right now, we're in the beginning of 2017 again and the best is yet to come!
"History doesn't always repeat, but it often rhymes" - Mark Twain
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.