Fun

Bitcoin halving: Why it’s important for BTC scarcity

News Feed - 2024-04-20 05:04:12

Zoltan Vardai50 minutes agoBitcoin halving: Why it’s important for BTC scarcityBitcoin"s most important economic mechanism, the halving, could legitimize Bitcoin as a store of value asset for the digital age, seeking more liquid assets than real estate or gold.570 Total viewsListen to article 0:00Bitcoin HalvingOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe fourth-ever Bitcoin halving occurred a few hours ago at the 840,000th block. The halving is considered the most important economic mechanism influencing Bitcoin (BTC) supply and creating scarcity for the asset.


The Bitcoin network’s fourth halving event, reduced block issuance rewards from 6.25 BTC to 3.125 BTC per mined block, effectively slashing Bitcoin’s issuance rate in half.


The halving is a crucial mechanism for Bitcoin’s scarcity and market valuation, according to Karim Chaib, the CEO of crypto platform Dopamine App. Chaib told Cointelegraph:“Scarcity is a fundamental economic principle that affects the value of an asset. By programmatically ensuring that the supply of Bitcoin increases at a slower rate over time, the halving events underscore Bitcoin"s scarcity.”


The halving is hard-coded in Bitcoin’s code base, which happens every 210,000 blocks mined, which equates to roughly every four years.


The Bitcoin network witnessed its first halving in 2012 when the Bitcoin’s issuance rate was reduced from 50 BTC to 25 BTC per mined block. The last two halvings occurred in 2016 and 2020, significantly slashing Bitcoin’s issuance rate to the current 3.125 BTC.


This hard-coded scarcity makes Bitcoin stand out from traditional store-of-value assets, according to Chaib, who told Cointelegraph:“This programmed scarcity is a key feature that differentiates Bitcoin from traditional assets like gold, which can become less scarce as new means of extraction and production are developed. Bitcoin, by contrast, has a capped supply of 21 million coins, making it fundamentally inflation-proof.”


Related:Bitcoin supply to run out on exchanges in 9 months — BybitIs Bitcoin the next gold?


Bitcoin’s economic design and halving mechanism are effective mathematical methods to make Bitcoin a deflationary asset, which makes it the first reliable alternative to gold, according to Jonas Simanavicius, co-founder and CTO at Syntropy. He told Cointelegraph:“Gold has served for thousands of years as the primary store of wealth because it is difficult to increase its supply and it is global... Nothing else came close to having a predictably slow-growing supply—until Bitcoin.”


Bitcoin price rose 122% during the past year, while Gold price rose 19%. During 2024, Bitcoin is up over 51% year-to-date (YTD), while Gold price increased 15% YTD, according to TradingView.BTC/GOLD, Year-to-date chart. Source:TradingView


Precious metals and real estate were considered the best store of value assets throughout the years. But the digital age is seeking more liquid assets for faster movements, which will ultimately benefit Bitcoin, said Simanavicius:“Over time, Bitcoin has not only survived, but its backing power of extensive computation and decentralization has also grown so strong that more people and institutions recognize this security, and the benefits such as immediate transactability, geopolitical decentralization, and ease of carry outweigh those of other asset classes.”


Related:Top five BTC miners not selling despite Bitcoin halving# Bitcoin# Gold# Bitcoin Price# Investments# Bitcoin HalvingAdd reaction

News Feed

5 Bitcoin Cash Full Node Teams to Raise Funds With the Noncustodial Flipstarter App 
5 Bitcoin Cash Full Node Teams to Raise Funds With the Noncustodial Flipstarter App The creators of the noncustodial funding application, Flipstarter have recently announced there
Bitcoin Price Above $100,000 Again? Why $99,800 Is An Important Resistance To Break
Este artículo también está disponible en español. The Bitcoin price is approaching the $100,000 level again after experiencing significant declinesthese past weeks. A cry
No Plans to Make US Dollar Sole Currency, Zimbabwean Finance Minister Calls Idea ‘Suicidal’
No Plans to Make US Dollar Sole Currency, Zimbabwean Finance Minister Calls Idea "Suicidal" The Zimbabwean Finance Minister, Mthuli Ncube, recently told business leaders that he is
Reports Claim Russia Defaulted on Foreign Debt for the First Time in a Century, Kremlin Disagrees and Says It Paid
Reports Claim Russia Defaulted on Foreign Debt for the First Time in a Century, Kremlin Disagrees and Says It Paid According to reports, the Russian Federation has defaulted on its
South African Regulator’s Probe Into Mirror Trading International Unearths Previously Undeclared Losses and Missing Bitcoins
South African Regulator"s Probe Into Mirror Trading International Unearths Previously Undeclared Losses and Missing Bitcoins South African financial regulator, t
Commissioner Mark Uyeda calls SEC’s approach to crypto filings ‘problematic’
Tom Mitchelhill2 hours agoCommissioner Mark Uyeda calls SEC’s approach to crypto filings ‘problematic’Tucked away in a footnote as part of a recent statement, the SEC commissioner said his agency’s current approa
Arizona’s Senate mulls proposal to add Bitcoin ETFs to retirement portfolios
Brayden Lindrea8 hours agoArizona’s Senate mulls proposal to add Bitcoin ETFs to retirement portfoliosSatoshi Action Fund’s CEO Dennis Porter said even adding a small amount of Bitcoin ETF exposure could “DRAMATICA
Navigating post-halving landscape: What to expect for Bitcoin price and network security
Tristan Greene5 hours agoNavigating post-halving landscape: What to expect for Bitcoin price and network securityWith the April Bitcoin halving looming, the future is as uncertain as ever.10598 Total views3 Total sharesL
German Ramirez11 hours agoHuman-readable code: Why branding is the programming language of humansSuccessful firms know that branding and marketing don’t happen by magic or according to checklist-type formulae.395 Total
Ciaran Lyons2 hours agoCrypto community reacts to Barbie star saying Bitcoin talk exudes Ken energyMichael Saylor, Layah Heilpern and Girl Gone Crypto were among those in the crypto community that took an interest in wha
Cardano Price Breakout: Bull Flag Rally Points To Another 50% Surge
Este artículo también está disponible en español. Crypto analyst CoreCrypto has predicted that the Cardano price could enjoy a massive breakout soon enough. The analyst h
Rwanda May Not Reach Decision on CBDC Issuance Until End of 2022 — Central Bank Official
Rwanda May Not Reach Decision on CBDC Issuance Until End of 2022 — Central Bank Official The Rwandan central bank may not know whether it can issue a digital currency until Decem