One Way Ratchet: A Bitcoin Journey
One Way Ratchet: A Bitcoin Journey
One Way Ratchet Bitcoin
The Genius of the Bitcoin Halving | 021
59 minutes Posted Nov 18, 2023 at 8:22 pm.
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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