Bitcoin is the preeminent cryptocurrency, and the world’s only hope for a sovereign money that can be truly owned and spent with no government or any other organisation having any say in the matter. It is now half way to its next halving event whereby the block reward is cut in half.
Back in the beginnings of bitcoin, the mining reward for each new block was 50 BTC, and this reward lasted for 210,000 blocks. This was completed in 2012, and the next reward was halved down to 25 BTC.
By 2016 the mining reward was cut again down to 12.5 BTC. Finally, we arrived at the current halving event which happened in May 2020 when the reward was reduced down to 6.25 BTC per block.
As we stand, we are just about half way through the current halving, with another 2 years to go before the next one is predicted to happen in 2024.
Unlike the dollar, or any other fiat currency whose supply can be added to at the whim of the government or central bank that controls it, bitcoin’s emission schedule is mathematically certain. There will only ever be 21 million bitcoins in existence, which arguably makes them digital gold.
Historically, after every bitcoin halving there is a corresponding surge in the price. At the first halving, bitcoin was at $11, and in a year had risen to $1100. The second halving was a slow starter, as bitcoin fluctuated between $500 to $1000. But then the bull run set in and the price screamed up to $20,000. The current halving saw the bitcoin price at around $9000, and we have seen this rise to around $69,000 in November of last year.
Nothing is certain in this world, and who knows if we will continue to get such huge rises in the value of bitcoin. However, it does look like the price will continue to rise over the long term. The supply and demand here is not complex, and less supply must surely lead to more demand.
With the next halving only 2 years away, it could arguably be a good time to buy given that bitcoin has reduced in price 45% since those last highs. Looking at the bitcoin log growth curves, that the price has more or less stayed within throughout its history, it could be predicted that bitcoin will go above $100,000 within the next year.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
