2024-01-06 10:02:06
In spring 2024, Bitcoin will undergo a mathematical operation which will result in halving its production rate. So far, these “ halvings » led to sharp rises in its price…
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At the beginning of April 2024 (or perhaps towards the end of March), a major event, called “ halving ”, will happen in the history of Bitcoin. If we stick to what has happened so far, this operation should logically lead to a spectacular rise in the price of this currency…
The wise idea of Satoshi Nakamoto
Satoshi Nakamoto, the alleged inventor of Bitcoin – who remains unknown to this day – designed this cryptocurrency following the financial crash that hit the world in 2008. He therefore wanted to integrate protective mechanisms into it, capable of preventing its price from can never collapse excessively. In particular, he wanted to avoid the “printing money” effect.
The consequences of printing money
It is well known: the more a State spends, the more debt it is able to generate. One of the solutions imagined consists of operating the “printing of money”: new euros or dollars are printed and the government can then repay its debts more easily. However, this “monkey money” does not correspond to real production of goods, and therefore it gradually loses its value.
The 21 million BTC rule
To avoid such a practice, Nakamoto ensured that Bitcoin had a status comparable to gold and was thus only available in limited quantities. He established a rule: there will only ever be 21 million BTC (bitcoins) and not one more.
To achieve this, Nakamoto established the principle of “ halving » (division by two).
A division that takes place every 4 years
How does the “ halving » ? Every four years, the Bitcoin yield from mining operations (BTC production) is divided by 2. This rate is supposed to correspond to the increase in the computing power of computerscomputers. The production of BTC therefore followed this evolution:
- originally, in 2009, 50 new bitcoins were created every 10 minutes;
- the 1is halving took place on November 28, 2012: 25 bitcoins issued every 10 minutes;
- 2e halving in mid-2016: this number was reduced to 12.5;
- 3e halving : On May 11, 2021, bitcoin production fell to 6.25 in 10 minutes.
A value multiplied by 4?
If we stick to what happened during the previous “ halvings »the value of BTC should theoretically be greatly multiplied in the coming months:
- thus, in 2013, following the 1is halvingthe price of BTC rose from $13 to $1,152;
- following 2e halvingthe price gradually rose, from $664 to $17,760;
- following the 3e halvingit went from $9,774 to $67,549.
How to explain such rises? By the law of supply and demand. As BTC becomes more scarce, its price is expected to rise. And in fact, since the end of 2023, this cryptocurrency has resumed its rise. The fact remains that the future is a wide open book.
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