Bitcoin halving: Why it’s important for BTC scarcity
Good day, traders
The Bitcoin Halving has happened again.
~1st Halving (Nov 2012): BTC price was $12.0. It reached its highest price ever at $1163.
~2nd Halving (July 2016): BTC price was $638.51. Then, it skyrocketed to a new all-time high of $19333.
~3rd Halving (May 2020): BTC price was $8475. It later surged to a new record of $68982.
~4th Halving (April 2024): BTC price is now $63839. What will the new all-time high be?
What's different this time around?
1. A Bitcoin Spot ETF is in play.
2. Big institutions and investors are jumping in.
3. More people are aware of cryptocurrencies.
4. Governments are making new rules for cryptocurrencies.
5. Cryptocurrencies like Bitcoin are being accepted globally.
Let's get to the topic
Bitcoin's halving is a critical event that helps establish Bitcoin's value as a digital asset. It reduces the rate at which new Bitcoins are created, enhancing its scarcity and potentially positioning it as a reliable store of value for the digital era, more fluid than real estate or gold.
In the most recent halving, which occurred at the 840,000th block, the reward for mining a new block dropped from 6.25 BTC to 3.125 BTC. This reduction in mining rewards means that fewer new Bitcoins are entering circulation, making existing Bitcoins more scarce.
Karim Chaib, CEO of crypto platform Dopamine App, explains why this matters:
"Scarcity is a basic economic concept that impacts asset value. By design, Bitcoin becomes scarcer over time due to the halving events, which decrease its supply at a predictable rate."
Bitcoin's halving is built into its code and occurs approximately every four years, or every 210,000 blocks. The first halving was in 2012, when the reward went from 50 BTC to 25 BTC per block. Since then, the reward has halved again in 2016 and 2020, and now stands at 3.125 BTC per block.
This predictable scarcity sets Bitcoin apart from assets like gold, which can become less scarce over time as technology improves mining efficiency. Bitcoin, with its fixed supply limit of 21 million coins, is designed to be immune to inflationary pressures.
In summary, Bitcoin's halving events ensure its scarcity over time, boosting its potential as a valuable digital asset compared to traditional stores of value like gold.
This is just for informational purposes.
Thank you for reading.
The Bitcoin Halving has happened again.
~1st Halving (Nov 2012): BTC price was $12.0. It reached its highest price ever at $1163.
~2nd Halving (July 2016): BTC price was $638.51. Then, it skyrocketed to a new all-time high of $19333.
~3rd Halving (May 2020): BTC price was $8475. It later surged to a new record of $68982.
~4th Halving (April 2024): BTC price is now $63839. What will the new all-time high be?
What's different this time around?
1. A Bitcoin Spot ETF is in play.
2. Big institutions and investors are jumping in.
3. More people are aware of cryptocurrencies.
4. Governments are making new rules for cryptocurrencies.
5. Cryptocurrencies like Bitcoin are being accepted globally.
Let's get to the topic
Bitcoin's halving is a critical event that helps establish Bitcoin's value as a digital asset. It reduces the rate at which new Bitcoins are created, enhancing its scarcity and potentially positioning it as a reliable store of value for the digital era, more fluid than real estate or gold.
In the most recent halving, which occurred at the 840,000th block, the reward for mining a new block dropped from 6.25 BTC to 3.125 BTC. This reduction in mining rewards means that fewer new Bitcoins are entering circulation, making existing Bitcoins more scarce.
Karim Chaib, CEO of crypto platform Dopamine App, explains why this matters:
"Scarcity is a basic economic concept that impacts asset value. By design, Bitcoin becomes scarcer over time due to the halving events, which decrease its supply at a predictable rate."
Bitcoin's halving is built into its code and occurs approximately every four years, or every 210,000 blocks. The first halving was in 2012, when the reward went from 50 BTC to 25 BTC per block. Since then, the reward has halved again in 2016 and 2020, and now stands at 3.125 BTC per block.
This predictable scarcity sets Bitcoin apart from assets like gold, which can become less scarce over time as technology improves mining efficiency. Bitcoin, with its fixed supply limit of 21 million coins, is designed to be immune to inflationary pressures.
In summary, Bitcoin's halving events ensure its scarcity over time, boosting its potential as a valuable digital asset compared to traditional stores of value like gold.
This is just for informational purposes.
Thank you for reading.
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Register on CoinW and trade with me: coinw.com/front/affiliate?agentKey=CryptoMOJO&lang=en_US
Free TG Daily Futures Signals: t.me/CRYPTOMOJO_TA
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