One Way Ratchet

The Genius of the Bitcoin Halving | 021

If you liked the 21 million hard cap, just wait until you learn about increasing scarcity.

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