The Bitcoin Supply Shock to the System
Most won’t appreciate this until it’s too late.
Non-members can read the entire article here.
0.84 and 450. Take note of these numbers.
In about 18 days, Bitcoin’s network will slash the block rewards offered to miners to 3.125.
It still sounds like a lot, considering BTC’s hovering around the $70K mark at the time of writing. However, to put this into perspective, in its early years (2009–12), this was 50 BTC, 16x higher than the post-halving amount, at a time when you could still mine BTC on a CPU or GPU vs an energy-intensive ASIC miner.
Cool story; who cares?
You should care, especially if you want to profit from this market.
The TL;DR is that it immediately doubles the supply-and-demand ratio (assuming the latter remains constant) and generally leads to Bitcoin’s price comfortably doubling its previous all-time high (ATH).
Based on the last two major cycles, it is at least triple the previous ATH — $20K in 2017 and ~$69K in 2021.
This time, Bitcoin has done something unique: It set a new ATH before an upcoming halving event, reaching $73K.
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