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May 12th 2020: The 3rd Bitcoin Halving

Updated: Sep 30, 2020




Bitcoin is the world’s largest cryptocurrency by market capitalization, It is often referred to as digital gold. The comparison is because the digital currency has a limited supply.

As soon as 21 million Bitcoins have been produced (estimated date 2140 after the 64th halving event), the network will stop producing more. After, miners will stop receiving block rewards, but they will still get paid by the transactions, which they also collect.

The halving process generates scarcity and prevents hyperinflation; it refers to the Bitcoin reward halving when a miner successfully mines a new block, and it occurs every 4 years, after 210,000 blocks have been mined by the system. The Bitcoin block halving and the reward (received by miners for validating transactions) will decrease, from 1800 to 900 Bitcoin mined daily.

That means the current mining reward will be reduced from the current 12.5 Bitcoin per block to 6.25.

People tend to speculate on the price of Bitcoin. "Thanks" to that, Bitcoin gained popularity and it's more and more mainstream. We need to consider this as a catalyst for mass adoption.

We need to start thinking differently. The price of Bitcoin is always compared with FIAT currency (USD, EUR, CAD, JPY etc.). The fact is that we are comparing BTC which is deflationary, with USD for example, which is inflationary. By all means the price of Bitcoin will increase. In the future, it's possible that some countries will use Bitcoin as a collateral for their "virtual FIAT currency", trying to replicate the USD backed by gold.

The current world monetary system assigns no special role to gold; indeed, the Central Banks are not obliged to tie their currency to anything. They can print as much or as little money as it deems appropriate, OUT OF THIN AIR.

Bitcoin was created from the people, to the people. It's worth to see what is going to happen during this decade, and in the next days/weeks after the third halving. No one can guarantee to have the right answer and it would be best to do your own research. We cannot measure what the Bitcoin value will be after the halving, but the increasing scarcity, combined with a stable demand, will most likely have a positive impact on the value of your Bitcoin wallet.


#Decentralization #Bitcoin #Halving #Adoption #Newera #Newfinancialsystem