Hardly anything is as deeply anchored in the source code of Bitcoin as the halving of the block subsidy every four years. Because after exactly 210,000 blocks the inflation rate is in the Bitcoin Network drops dramatically. That makes BTC a disinflationary currency; The supply remains inflationary because the bottom line is that it rises but becomes smaller and smaller. In 2140 the supply growth finally comes to one stand still.
The block of subsidies was last halved in May 2020. A lot has happened since then: over 50,000 blocks have moved into the country, 89 percent of all BTC ever in circulation are mined, and cryptocurrency №1 is in its third historic bull run. But after halving is before halving. Time to take a look back halving # 4.
First things first: the exact date of Bitcoin Halving can only be estimated. After all, the Bitcoin source code only gives the block height at which the network’s consensus rules change. The next time it will be at a block height of 840,000. Based on an average blocking time of 10 minutes, the Bitcoin The inflation rate should halve around March 2024 – almost exactly in three Years.
Bitcoin’s The falling inflation rate makes the asset arguably the hardest money in the world. Until the upcoming halving, 986,350 BTC will be added to the system from the editorial Deadlinewhich will bring the supply to 19.68 million. In other words: before the inflation rate halves the next time, 93.75 percent of all coins ever in circulation are in the system.
With the halving of number 4, the inflation rate will then also fall below 1 percent pa for the first time. Currently it is 1.77 percent, from March 2024 only 0.84 percent.
Halving usually falls into the consolidation phase after the bear markets. If Bitcoin’s The cyclical growth continues, it should be over for now, with prices rising towards the end year. However, no one can reliably estimate how high the price will be rise. Models such as the stock-to-flow model, in which the halving events are viewed as an essential catalyst for price pumping, offer guidance. However, Hodler should not rely on PlanB’s forecasts.
However, if you use the model as a template it will undoubtedly become bullish. Because even according to the “conservative” S2F model, the mean value of the next bull market is around 1.3 million US dollars per Bitcoin.
However, a case block grant also means a decrease in income for the miners. In the future, this will likely come at the expense of transaction fees – especially as more people use them Bitcoin. Some of the on-chain fees are already higher than during the bull market in 2017.
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