Hello friends, getting closer to the Bitcoin Halving which is calculated for mid-2024, but that it is a very important fact in the world of Bitcoin because it allows you to have an idea of where the knife will stick in these days of madness for falling prices.
To better understand everything, it is necessary to define what a HALVING BITCOIN is.
What is block halving?
A Halving is more than the process by which the rate of issuance of new units of a certain cryptocurrency is reduced. Which constitutes an essential function of the Bitcoin protocol. The code can be found on the Bitcoin Core Github and below is a snippet of the code that makes the bitcoin halving possible. This is well documented in their code, the block grant will be halved every 210,000 blocks.
Why are halvings important?
Halvings are one of the fundamental aspects of the economic models of cryptocurrencies because they guarantee that the coins will be issued at a constant rate, following a predictable decreasing rate. Such a controlled monetary inflation rate is one of the main differences between cryptocurrencies and traditional fiat currencies -which basically have an infinite money supply.
References in historical Halvings.
The main references are those that occurred on November 28, 2012, and July 9, 2016.
At the time of the first halving, Bitcoin was worth $12.31; while by the time the second was produced, the price had risen to $650.63.
There will only be 32 bitcoin halving events, once all have occurred there will be no more halvings and no more Bitcoins created as the maximum supply will have been reached.
Interesting to highlight
It is very interesting to note that in 2015 the price of BTC bottomed out 547 days before Halving. In 2018 I hit rock bottom 517 days before Halving. This allows theorizing that BITCOIN bottoms out between 517 and 547 days before Halving in mid-2024. Which would be approximately in the fourth quarter of this year.
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