Home:- Bitcoin Halving 2020
Bitcoin is about to go through possibly the biggest fundamental event that we have in our ecosystem today the Bitcoin block reward halving of 2020 where the amount of bitcoins that are mined into existence are cut in half because as you know there will only ever be 21 million Bitcoin ever. That is why Bitcoin has a fixed supply and that fixed supply is deflationary meaning Bitcoin the first asset ever in human history has a predictable monetary supply. So in about 10 days for the third time ever once in 2012 second in 2016 and coming up again a third time in 2020 the supply faucet the block reward the amount of Bitcoin coming into existence. In every block which is about every 10 minutes will be cut in half massive supply shock the block reward is which is now 12.5 coins per block per 10 minutes will decrease in half to six point two five coins per block. Now it should be noted that the last Bitcoin will not be mined into the year 2140 so we will long be dead Bitcoin will continue to have these having soar over the next hundred years really showing how much of an infancy we are right now in bitcoins lifespan. The 2020 Bitcoin halving by all accounts is a huge event and just another way to think about this what’s gonna happen in 10 days. Today around 1800 new bitcoins are minted into existence each day worth around 11 million dollars and most of those 1800 bitcoins that are minted and dumped daily. The miners are constantly dumping Bitcoin but this does mean that it takes about 11 million dollars daily coming into the ecosystem. People buying Bitcoin for the price just to stay the same but in about 10 days the next halving this will drop down to just about 900 BTC a day that’s huge that’s a massive supply shock to the ecosystem and even if the demand of Bitcoin just stays the same because we’ve been seeing healthy increasing growth demand in Bitcoin over the last month. If the demand stays the same and the supply faucet gets cut in half what’s that gonna mean for the price of Bitcoin.
Bloomberg the other day Bloomberg Businessweek gets set for Bitcoin halving. That means articles like this which we are seeing from traditional finance more and more means that the FOMO is clearly on articles like this add to it and while this educates a lot of people on what bitcoin is. A lot of people from this massive blast out of awareness expect a price pump looking at the last month of Bitcoin we’ve been seeing a pretty steady healthy price pump. Now despite expectation on what the price that Bitcoin will do the day of the halving and this should be your expectation. looking at history the price of Bitcoin will probably do nothing or possibly even dump. Look at the first halving the price of Bitcoin really did nothing if we look at the second halving in 2016 the price of halving did something before the event and then dumped. That day into the weeks after and if we’re being realistic it wasn’t until 360 days after or even 525 days after. The months leading up to it obviously that Bitcoin saw new all-time highs while nothing. People said it was a failure day of the Bitcoin halving the supposed supply shock the effects price-wise don’t happen until after this is what the common retail investor does not know yet.
News after the 2017-2018 bear market we saw a little first accumulation we saw a little expansion right now we are on our second accumulation expectation but we are about to enter the next official bull market obviously 6 to 12 months after the third halving and as a Bitcoin holder. These are the fundamental macro big picture events that you should be able to articulate a friend to a family member. Now taking into account all sides looking at all factors for Bitcoin the only thing that I could see that might be a little bit of a speed bump in bitcoins inevitable rise is what traditional markets do and we have been seeing despite a record unemployment record infected record fatalities unfortunately because of the trillions of dollars. The global economy is printing the u.s. is printing traditional markets are turning around we are seeing right now that the curve is starting to flatten. The USA has said that we’re gonna slowly start opening up the country again which is good economically hopefully. The only thing that I can see that could potentially slow the party or end the party is if we open things back up and maybe this spikes back up again like we’ve seen before but either way in about 10 days this will be huge awareness a huge reminder. The third time in history that this has ever happened a reminder that Bitcoin has a predictable monetary supply unlike gold unlike any other asset in history it is a harder form of money than gold and yet despite Gold’s market cap is trillions and trillions of dollars more than bitcoins today. Bitcoins inflation rate is about to be lower than gold for the first time ever right here that speaks volumes fundamentally.