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The #Bitcoin 
https://abs.twimg.com/hashflags... draggable="false" alt=""> halving; where are we and where are we going? (A thread)
The third Bitcoin halving is now just a matter of hours away. There is much talk about whether we see a halving pump or dump. The fact is, the fundamentals of the halving do not give a definitive move...
The third Bitcoin halving is now just a matter of hours away. There is much talk about whether we see a halving pump or dump. The fact is, the fundamentals of the halving do not give a definitive move...
one way or the other in the short term. I think a “buy the rumour, sell the news” event is quite possible but with everything else going on in the macro and crypto environment right now price could go anywhere.
The halving occurs every 210,000 blocks, or approx. 4 years.
The halving occurs every 210,000 blocks, or approx. 4 years.
It is a high time frame event and so should be considered as such when looking at impact on price. Block rewards are going to be halved from 12.5 to 6.25 BTC.
The amount of bitcoin sold by miners will reduce from around 1800 per day to 900 per day.
The amount of bitcoin sold by miners will reduce from around 1800 per day to 900 per day.
A significant supply shock that fundamentally changes supply/demand ratio even if demand is just to stay constant.
@Woonomic estimates 1200 BTC/day are sold onto the market from exchange fees so the halving may actually have less impact on circulating supply compared to 2016.
@Woonomic estimates 1200 BTC/day are sold onto the market from exchange fees so the halving may actually have less impact on circulating supply compared to 2016.
However, one look at the chart below tells us that HODLers are well into accumulation mode in anticipation of the next bull run.
Lower block rewards will force inefficient miners to switch off and we may see a drop in hash rate and difficulty in the short-term.
This will drive a move to more efficient miners with healthier balance sheets, that need to sell less BTC to USD to meet their running costs.
This will drive a move to more efficient miners with healthier balance sheets, that need to sell less BTC to USD to meet their running costs.
It is likely we see a couple of months of turbulence while the network transitions to next-gen tech.
Once the transition is complete the stage is set for the next bull run as sell pressure from miners is significantly reduced.
Once the transition is complete the stage is set for the next bull run as sell pressure from miners is significantly reduced.
Coupled with the current macro environment of money printer go bbrrr, negative rates and increased institutional interest, demand for #Bitcoin https://abs.twimg.com/hashflags... draggable="false" alt=""> is set to soar.
With such lopsided supply/demand dynamics it’s hard to see #Bitcoinhttps://abs.twimg.com/hashflags... draggable="false" alt=""> not appreciating significantly.
With such lopsided supply/demand dynamics it’s hard to see #Bitcoin
The real question is, how high will it go?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Rocket" aria-label="Emoji: Rocket">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Rocket" aria-label="Emoji: Rocket">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Rocket" aria-label="Emoji: Rocket">
I& #39;ve enjoyed learning more about the halving and in particular I& #39;d like to thank, and recommend following, these guys who know a lot more about it than me!
@mjdsouza2
@PrestonPysh
@woonomic
@mjdsouza2
@PrestonPysh
@woonomic
