After the last third half Bitcoin (BTC) is now in the fourth era of rewards. In anticipation of this incident, critics released various forecasts ranging from the abandonment of miners to falling retail rates to half-million-dollar price expectations.
Most of the analysis focused on looking back at trends after the first and second rounds. In both cases, BTC prices rose respectively next year and after 18 months.
Historical price of Bitcoin with specific indicators and forecasts
But the state of the third half has no analogues. It is actually more like creating a Bitcoin network from two past events.
Advisor is on the verge of other banking assistance
Satoshi Nakamoto is known as “The Chancellor of The Times 03 / Jan / 2009 on the verge of a second bank rescue” in the Bitcoin configuration block. It was a reference to economic times, and also, apparently, the inventor / Bitcoin reference to a new monetary system where the endless print of air would become redundant.
Halfway bonus points are a reminder of Bitcoin's promise to announce a new and more responsible era of monetary policy. But while Bitcoin was conceived after the global financial crisis and expanded its plans to support central banks around the world, they twice collapsed in periods of relative stability (although interest rates remained historically low).
However, the third half coincided with an unprecedented expansion of the money supply following the COVID-19 pandemic. As the latest senior Bitcoin investor, Paul Tudor Jones, notes, $ 3.9 trillion has been printed since February, representing 6.6% of global economic output. As he wrote in a client note:
“We are witnessing huge cash inflation – an unprecedented expansion of all kinds of money, unlike anything the developed world has survived.”
Including a $ 2.3 thousand infusion. The Fed plan far surpasses the 2008 rescue
The last block, mined in the bonuses of the third block, included a message reminiscent of the potential of Bitcoin in the economic future and the conditions in which half were halved. F2Pool included the message “NYTimes 09 / April / 2020 with $ 2.3 tons injections, Federal Reserve's rescue plan for 2008” exceeded block 629,999. It was a permanent timestamp for the central bank's generosity and a touch of the Satoshi Travel Block message.
The current era of massive bonuses rarely sets BTC as gold in terms of resource availability. At the current level of 6.25 BTC each block was created, it will take 56 years to replace each bitcoin in circulation. The ratio of gold to electricity is 58.3.
As bitcoin becomes twice as large as assets that are half as much as half, the paper currency plummets. The mode mimics the conditions in which bitcoin was created. “Just to say you just flunked the system with money,” CBS leader Scott Bailey told the Fed Chairman May 13. “Yes. We have done. This is another way of thinking about it. We have.”
It is better to compare the epoch after the third half with the bonus bonus in the first half. I grew up in an unprecedented expansion of the money supply, as it was during a period of Bitcoin bonus for the first block.
With an annual emission level of 1.8%, equivalent to gold, in the third half of the year, transferable assets were created that could withstand inflationary pressures. Of course, Bitcoin was thought of as a node-to-peer electronic money system. This story has faded somewhat, as institutional demand now plays a much bigger role in the bitcoin track.
However, one can believe that Satoshi predicted this. The message “Advisor on the threshold of the second plan to save banks” in the Genesis block indicates currency immunity from the printing press, just as gold has the same level of immunity from devaluation by overproduction.
The last decade has, of course, been characterized by quantitative relief. But the large volume of money printed when Bitcoin was created before from the third half makes it a compelling argument in favor of Bitcoin as an investment class and limited-delivery assets amid almost endless incentives.
Thus, the other half of the event is more symbolic than the previous two events. It has the potential to enter into a whole new economic system, just like an inventor that has been for more than a decade.