Divided by 2. Since its official creation in 2009, Bitcoin has continually redefined the boundaries of traditional economics and finance. Because this monetary revolution is supported by innovative features such as rarity and/or programmed control of its emission. Unprecedented visibility, given the absence of limits imposed on currencies controlled by Central Banks. And among the emblematic procedures of this digital adventure is the cyclical halving operation. A stage of which the first version took place 11 years ago todayNovember 28, 2012. Back to the future…
Bitcoin: the decisive stage of halvings
The tokenomics of Bitcoin is based on a few fairly simple rules, yet very important. A logic at the center of which is the procedure identified under the term halving. Because this division by 2 of rewards paid to minors at the same time triggers a rarefaction in the issuance of BTC.
A seemingly purely accounting reality which, for the moment, however has the fairly regular effect of triggering a rise in the price of Bitcoin. Indeed, this scarcity programmed by cycle of 210,000 blocks mined (around 4 years) has undeniable effects. This is the reason why its next and 4th edition is once again eagerly awaited by investors. A recurring “party” yet anticipated as “unprecedented” by Michael SaylorBitcoin treasury maximalist with his company MicroStrategy.
Because the third Bitcoin cycle is coming to an end. In fact, this period already completed 89% of the way towards the fourth edition of this division of rewards allocated to minors. A new transition planned in a little more than 154 daysif we believe the countdown posted recently on the home page of the Binance platform. That is to say around the end of April 2024. But the amounts now involved already have nothing to do with the first edition of 2012 !
2012: The year of the very first halving
The Bitcoin white paper is unequivocally possible. Every 210,000 blocks mined on its blockchain, a halving regulates the issuance of its BTC. An operation that took place for the first time in 2012, when the reward paid to minors was 50 BTC. A real fortune considering its current price, since it would correspond to 1.87 million dollars. But at that time, this digital jackpot barely reached the $600with the price of BTC around $12.
Following this first halving, miners only received $300 for mining a block. But the situation will change very quickly, since only one year later, the price of Bitcoin showed an amount above $1000. That is to say a reward of $25,000 for work whose BTC bill had nevertheless been divided by 2 a few months earlier. The magic of Bitcoin’s scarcity!
Because even if the amount paid in BTC to miners decreases every 4 years, the bill collected in dollars is constantly increasing. In fact, they currently affect 6.25 BTC to mine a block, either $233,750 at current Bitcoin price. However, their costs are also on the rise. What poses regularly questions of profitability, now to be reconciled with ecological imperatives impossible to ignore.
What can we expect from the next edition of the fourth halving Bitcoin? Considering past editions, a possible programmed and almost mechanical increase in the price of BTC. However, the current context is very different from 2012. With a former head of the New York Stock Exchange, Tom Farleyentering this race at the very moment when Changpeng Zhao (CZ) is pushed towards the door of its Binance platform. But after all, it doesn’t matter. Because just like 1 BTC = 1 BTC, its emission is already programmed in the Bitcoin code.