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- šæ Theyāre Cutting My Bitcoins in Half??
šæ Theyāre Cutting My Bitcoins in Half??
The Bitcoin halving is upon us, and the crypto world has descended on Dubai for Token2049
GM. The Bitcoin halving is upon us, and the crypto world has descended on Dubai for Token2049. Although, none of that is as important as the photoshoot your least favorite influencer just posted from a pool party at Coachella.
ā *knuckle cracks* ā Letās get into it.
Todayās specials:
Bitcoin Halving - What You Need To Know
Conference Corner š : Token2049 Dubai
AI App of the Week š»: Learn a New Language w/ AI
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Bitcoin Halving - What You Need To Know
What is the āHalvingā
Bitcoin has a capped supply at 21 million coins ā with about 19.5 million already in circulation. New coins are paid out to miners -- today the Bitcoin network pays out to miners 6.25 Bitcoin every 10 minutes or so, or about 900 coins a day.
The āHalvingā is a 50% reduction in the reward miners receive.
When is this happening?
This event is coded into the Bitcoin protocol and occurs approximately every four years or after 210,000 blocks.
This time, itās projected to happen this week, although the exact date/time depends on the activity.
Here is a tracker to stay on top of it.
Why it matters
Mining Optimization
The halving makes miners optimize energy consumption and increase hash power. This helps sustainability and the long-term viability of the Bitcoin ecosystem.
Forced Supply Scarcity
The reduction in new coins makes Bitcoin increasingly scarce over time. This is a key factor in Bitcoin's appeal and potential as a store of value.
Buzz & Engagement
The anticipation leading up to a halving generates a lot of discussions and online chatter (like this post) about the fundamental principles of Bitcoin and crypto in general. More chatter is almost never a bearish signal.
Iām not a miner, why should I care?
The last 3 halvings, Bitcoin has gone on a rally in the year that followed.
When the last halving occurred in 2020, BTC was around $10k. In the two years that followed it hit a high of $67k. The post-2016 halving rally was even more dramatic, with Bitcoin rising from $665 at the time of the halving to a high two years later of over $17k.
Although, this is not a huge sample size, and itās often debated whether the halvings are the real cause of the rallies. There are many other macroeconomic factors to look at.
The last halving had the benefit of the post covid market rally, so we donāt think the halving was the cause there.
We obviously canāt say for sure what will happen this time. With all of the ETF action there is a broader interest this time around, so weāre prepared to go out on a limb and say that the halving will do something to the price one way or another.
Conference Corner š
Token2049 Dubai is underway this week, and as always we have the side event intel for you.
AI App of the Week š»
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