The Genius of the Bitcoin Halving | 021
If you liked the 21 million hard cap, just wait until you learn about increasing scarcity.
One Way Ratchet · Greg Schein, Dan Felger
November 18, 202359m 20s
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Show Notes
Dan and Greg get into the Bitcoin Halvings, the true genius at the heart of Bitcoin's supply schedule.
- The next Halving is only 5 months away!
- So few people actually understand the Halvings and how they work - and their implications for Bitcoin price and adoption
- Greg talking to friends about Halvings - the responses are enlightening
- Conclusion: we are so early
- How does the Halving actually work?
- Bitcoin come into the world every day through mining
- Every 10 minutes on average, a minor is awarded the block reward
- That block reward gets cut in half every 4 years (210,000 blocks)
- Started at 50, then 25, then 12.5 and the current block reward is 6.25 BTC awarded to a winning miner, ever 10 minutes on average
- See chart of Halvings
- The reduction in daily supply creates a supply shock every 4 years, which in turn leads to big increase in Bitcoin price
- Genius of design choice. Heavily skewed to early days
- 93% of Bitcoin already mined and in the word, the remaining 7% will be mined over the next 120 years
- Conviction of Bitcoin holders at all-time highs - see chart
- The 3 Halvings so far have led to massive bull runs - see chart
- Nobody knows if these cycles will continue, but we are not betting against them
- Zoom out. Given dynamics of Halvings, price goes up over time. Day to day price movements are boing and meaningless
Topics
bitcoin