The Obvious Reason Why Bitcoin Halving Will Skyrocket Its Price Is Law of Supply and Demand
With regard to the law of supply and demand, Bitcoin presents an initial guarantee concerning the available supply.
Bitcoin exists in finite quantities and the number of Bitcoins that will be put into circulation is 21 million.
This guarantee is verifiable since it is written into the Bitcoin source code itself.
By arbitrarily setting this limit when creating Bitcoin, Satoshi Nakamoto has decided to make Bitcoin something scarce.
We also know how many Bitcoins have already been mined.
18,218,287 Bitcoins have already been mined as of February 15, 2020.
Best of all, the Bitcoin production model is predictive.
As the Bitcoin Blockchain was designed, we know that the production of new Bitcoins will slow down every 210,000 validated transaction blocks.
By 2140, all Bitcoins will have been put into circulation.
Halving is the name given to the reduction in the number of Bitcoins produced. It is an automatic operation written into the Bitcoin source code.
As you know, the production of new Bitcoins is done each time a new block of transactions is validated and then added to the Bitcoin Blockchain.
A block of transactions is validated every 10 minutes on average on the Bitcoin network:
So in one day, we have an average of 144 blocks that are added to the Bitcoin Blockchain right now.
Since the reward given to miners for validating a block is currently 12.5 BTC, we have the creation of 1800 new Bitcoins every day on average.
For 11 years, Bitcoin has never been hacked and its network has an uptime of 99.98%.
The Bitcoin therefore gives very strong guarantees on its functioning and the respect of this availability of new Bitcoins on a continuous basis.
As of February 15, 2020, Bitcoin is at block 617,464.
When the 630,000 block is added, Bitcoin’s third Halving will take place.
This leaves 12,536 blocks before reaching this crucial moment in the history of Bitcoin.
At the current rate of 144 mined blocks per day, this third Halving of Bitcoin is scheduled to take place in 87 days.
On May 12, 2020, the reward allocated to miners for the validation of a block will therefore be halved to 6.25 BTC.
From 1800 new Bitcoins produced every day, we will decrease to only 900 new Bitcoins produced every day.
With this third Halving, Bitcoin will therefore experience a monetary creation shock.
Published at Sat, 15 Feb 2020 10:01:05 +0000
