After the Bank of England was created in 1694, it took 300 years to create the first trillion pounds.
By comparison, in the 10 years following the 2007 financial crisis, more than $9 trillion was added to the global economy.
And in the past few months, the U.S. Federal Reserve created another $4 trillion dollars.
At the very same moment, Bitcoin has been triumphantly making its way to its third reward halving event, where Bitcoin miners will receive 50% less bitcoin for every block of data they verify, cutting the incoming Bitcoin supply by half. Bitcoin miners were initially rewarded with 50 Bitcoins, and in 2012 the reward was halved to 25 Bitcoins. The most recent halving was in 2016, down to the current reward of 12.5 Bitcoins. You can learn more about Bitcoin mining rewards here.
The historic third bitcoin halving event is predicted to take place on 12 May 2020 at around 2 in the morning Central European Time (CET). The Bitcoin halving timer is pre-set to activate each time 210,000 blocks of data are mined. As a result, the third halving will happen on block 630 thousand, and we are–at the time of writing this article–on block 629,507. After this halving, the reward will be reduced to 6.25 BTC per block.
Following the upcoming 2020 Bitcoin halving, the next halving is expected in 2024. Based on the current trajectory, it is estimated to take at least another 120 years to distribute the rest of the entire Bitcoin supply.
While the Bitcoin halving reminds us of its in-built supply limit and deflationary nature, it may or may not be directly correlated to a short-term rise in Bitcoin’s price, as can be seen from a historical Bitcoin halving chart.
The short-term effects that Bitcoin’s halving will have on the market are largely unknown, however, the long-term implications are clear.
With the state of today’s economy, the Bitcoin halving due to take place in the coming days stands to remind us that there is one aspect of the global economy that will always remain stable—the supply of Bitcoin.
While unseen economic decisions impact our lives in ways that can’t be measured, the halving of Bitcoin’s rewards shows that the decisions that govern Bitcoin were permanently instilled into its algorithm 11 years ago.
This moment in history proves that everything changes, except Bitcoin.