Topic: 3 interesting tips about Bitcoin halving (Read 290 times)

Right. The halving seems like a smart move. If all bitcoins were up for grabs too quickly, it might flood the market and drop the value. By making it harder to mine, it keeps things scarce and in demand. Miners benefit too because they could rake in more profits by holding onto their bitcoins as they become more valuable. Smart strategy, even if it's not spelled out in the white paper.

How can it be less important when it's one of the most anticipated event in bitcoin's history? Of course, there is still the fundamentals, but BTC is more of like a store of value as you have said, and with that every halving, every wait every 4 years, BTC becoming scarce pushing the price higher.

As to the interesting facts that the OP put, yes, thanks. But I do not think the investors are really into that. I mean we don't want things to be complicated in our end, so we just wait when will be the halving and what will be our new all time high as the end of this activity.

I think Satoshi must have had perfect idea as to why they are implementing the halving process. They did not do it intentionally they did it with perfect vision. If all the bitcoins were supposed to get mined easily within few years of timeline then the demand and supply would have been gone wild. I mean we would have got lot of Bitcoin (supply) but less demand because it is easily available. The rational? Well to value the Bitcoin more and more with the time. In exactly similar fashion as Gold is doing today. They applied perfect analogy to increase the mining difficulty as it would make Bitcoin more scarce and more demanding. Even if it is not clearly written within white paper I still believe they must have got clear idea about this theory back of their mind. In addition, miners doesnt lose anything, they could actually make nice profits as the Bitcoin becomes more valuable due to high demand and scarce supply. (If they hodl)

The Bitcoin halving is an event that occurs approximately every four years, reducing the number of new coins that are earned by miners. This process is designed to counteract inflation and has historically led to significant price appreciation, making it a pivotal moment for investors seeking potential gains.Here are some tips and strategies for investors interested in the Bitcoin halving:


-Understand the Impact: The halving can trigger extreme price moves and initiate long-term price trends, so it's important to consider the increased price volatility and factor this into your risk management strategy

-Accumulate at Favorable Rates: Many investors and HODLers try to accumulate BTC at favorable rates before the halving event to avoid market volatility

-Diversify Your Portfolio: Consider diversifying your cryptocurrency portfolio to reduce risk, as the halving may create price volatility, and other cryptocurrencies may perform differently during this period

-Consult with Experts: If you are relatively new to investing in Bitcoin, it's advisable to seek professional help from financial advisors or experts with experience in the crypto market to make more informed choices

-Stay Informed and Secure: Stay informed about market dynamics, study price patterns, and implement security measures to reduce the risks associated with holding and transacting Bitcoin, ensuring that your investments remain safe and secure, even during the heightened activity surrounding Bitcoin halving events

By understanding the impact, staying informed, and implementing prudent strategies, investors can potentially navigate the Bitcoin halving with confidence and reap the rewards of this dynamic event
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This is a merit to bitcoin but 60% of people that chase after profits because of the hype don't understand what bitcoin halving is and the impact to the bitcoin. They probably heard from friends that bitcoin price usually triple or more in every halving and then gather money from where they can only to buy bitcoin at the top and start crying later if the market under goes a correction after the halving because from the look of bitcoin chart, in every pump, there must come a correction.

What amused me about this new people is that when the bitcoin price drop that they should have bought it and risk money from friends and family that wouldn't ask them soon, they would rather watch till it bottom, make a reversal and when it has pumped or start the pump they rush back to buy only for Bitcoin to make another correction and then they panic to sell at loss or hold at another loss that will take another market circle to recover, chasing bitcoin price is never a good move.

Thank you, OP for this, though already known, but still, it is educative and will teach those who didn't know before now. Permit me to talk about Satoshi's remarks as to not knowing the reason why he planned the halving and believing that one while paper would still be written. Well, I do not expect any white paper, and who knows if it would be an imposter to whom the white paper is written about? It has happened before that many claimed they are Satoshi, but for ordinary signing, they failed. We can't guarantee that such will not happen even as the white paper might be compromised.

But for the reason why halving was planned by him, I believe it is not far-fetched, it is simply for the visioned demand and supply economics to the advantage of Bitcoin. That is for it to make the coin more valuable and continue to appreciate in value even as the miners have the opportunity to gain more for their participating efforts' rewards over time.

Miners' halving preparation. This is a crypto industry strategic shift, not a tactical one. Miners decide the network's future. They must prove their mettle, inventiveness, and dedication during the halving.

Pre-programmed halvings reveal Bitcoin's governance. This is a big change from reactive, subjective financial policy. The protocol-based approach of Bitcoin gives it determinism and impartiality that's rare in monetary systems. Not only code, this is a statement declaring independence from economic manipulation.

Comparing Bitcoin to gold is a modern conception of value. Bitcoin challenges the concept of a "store of value". This is a philosophical as well as technological breakthrough.

Halving are becoming less and less important. What will drive BTC more and more is adoption and store of value against inflation.

Supply can not be changed, and it helps Bitcoin is solid than smart contract altcoins with mint function to dump any new supply if developers want.

How is the 21 million bitcoin cap defined and enforced?

Halving is used like seeding for Bitcoin every four years and attract considerable new people, investors join this market with their money. They are new in this market and their money brings in is new capital flow for this market. It helps price to increase with same supply, higher demand, more capital is ready to buy up the price.

The best thing about bitcoin halving is it attracted great numbers of investors which made the price of bitcoin rise and create new ATH every time we reach this event, we are witnessing history and it's really nice to be one of those people who were willing to wait until the price increase to the point it will gonna shake the whole world because after that others will have clear view about their assumptions with bitcoins and they will gonna invest rather than listen to those critics and FUDS that has been polluting the crypto industry for years without any evidences.

Is it not because he wanted for bitcoin’s supply to be well circulated?

By halving, it is avoiding inflation the supply is cut into half but the demand remains the same resulting in higher prices it is basically controlling or maintaining the scarcity of bitcoin because of halving itself, bitcoin is compared more to gold than traditional money

We don't know the exact reason of halving, but it seems to be a great and simple way to introduce a way of slowing down the pace at which new coins enter the circulating supply, and making the process fully autonomous (no centralized authority is required to control the supply).
Cycles also give people a feeling of something being completed, give motivation and things to look forward to in the new cycle. Perhaps it's because of how we're used to living. We have days as cycles of Earth's rotation around its own axis, years as rotations around the Sun, so cycles are just something we are very used to. Many look forward to halvings, anticipating an increase of BTC price afterwards, and miners can try to make the most out of the rewards before they get reduced.

By the way, we don’t know exactly why Satoshi chose a 4-year period for the interval between halvings. Perhaps there is some rational reason for choosing an even number greater than two for this interval. The 4-year period coincides with the intervals between presidential elections in many countries, particularly the United States. Indeed, there are electoral cycles in the behavior of assets, for example, in the stock market. There are also 4-year astrological cycles. But we can say that 4 years is a long enough period to prepare for the next halving of the subsidy for the mined block of Bitcoin.

what makes me interested about halving is that I think at that time halving was the news that had the most positive influence on bitcoin, we can't increase the price of bitcoin with small positive things like investment from companies or regulations, but if it's about halving I think everyone agrees This is a form of Bitcoin's positive trend every few years. but I am very curious if bitcoin is completely mined will the halving also end. So what's interesting next?

Maybe Bitcoin can be considered digital gold, but of course it's still very different from real gold, and all crypto enthusiasts know this. Also, with the upcoming bitcoin halving, I still believe that there will still be rewards for the miners.

I'm not sure if the bitcoin fee will increase after the bitcoin halving. Is that possible? because if it was just now or recently, there was a crisis in the bitcoin fee, especially after the Halving, right?

Well, this is not tips, but much more like what you understand about mining and halving event.

Unpopular opinion: halving is actually has no relation with bull run, but many people think due to Bitcoin become scarcer, it makes Bitcoin price increase.

That's true, but he indirectly stated it was for reward to miners. IIRC someone was saying halving happens every four years was due to math.

At least for now bitcoin and gold supply have different characteristics. Since bitcoin has been created, the supply is meant to be 21 million. Which means after the whole 21 million BTC has been mined, there will no more be new BTC that would be introduced into the calculation. But check this about gold:

Major gold deposits discovered in Uganda

On June 7 2022, approximately 31 million metric tonnes of gold was declared by their president to have been discovered in the country. There are many of this kind of news that a country will discover gold or more gold deposit. Which means the supply are increasing.

These are the gold on the land surface. There are still gold in the earth crust and beneath the ocean but which modern day technology can not mine. Also there are gold deposit outside the earth on other planets. Also can be asteroids that consist of gold. Example is Psyche 16. We do not know how advance the world would be in some centuries to this time and we can not just conclude that gold deposit is limited.

As far as what I've read is concerned joining a mining pool is probably more efficient than mining solo especially if you have limited resources and your devices aren't the best ones that can produce competitive hash rates.

I guess Satoshi gradually reducing mining rewards is also imitating gold mining's characteristic. The more gold mined, the longer miners are extracting the mineral, the more people mining gold, the lesser the supply becomes and the lower the amount mined for miners. The supply is dwindling. It's logical for the output of mining to also decrease.

Bitcoin halving, in addition to the increase in demand, is what makes the price change in this sharp manner, as every 4 years we witness an increase in the price of Bitcoin, which greatly enhances adoption. Therefore, halving may represent one of the reasons for making Bitcoin grow and spread, but over time, its effect will be, and then, if not supply. Significantly, the price will be stable or begin to decline, or at best not be affected by the 4-year cycles. Then, what pushes the industry forward is decentralization.

Some detailed tables about flippenings. We are still in a last flippening time between a curve and a flat area of the Bitcoin supply curve. When the flat area is touched, people will discuss like Will it be the end of Bitcoin because Bitcoin miners will receive less coins from mining. I read those discussions many times and similar topics like will Bitcoin die after 2140 when all 21 million bitcoins in total supply already mined by miners.

It's too far but if Bitcoin adoption continues to be bigger, Bitcoin price will be higher and miners will have more money from transaction fees like we see since 2023 February with Ordinals spam on Bitcoin network. I think it will not be matter of miners if block rewards halve and halve.

Controlled supply
Equivalent Network Time

He should have made it 1 block every 20 minutes not 1 block every 10.

We are now feeling the first effects of what I call the "real flippening".

Here is what the real flippening is.

Rewards ------------ fees

50.0000                under 0.2 btc   2009-2012   
25.0000                under 0.4 btc   2012-2016
12.5000                under 1.0 btc   2016-2020
  6.2500                under 2.0 btc   2020-2024
  3.1250                under 3.0 btc   2024-2028      first taste of flippening
  1.5625                under 3.0 btc   2028-2032         the flippening

So 2024 to 2032 will be new and flipped.
miners are prepping by figuring ways to push the fees to new highs.
Should be interesting.

Miners have to build up their strategy because mining is like an investment but requires very long time to get break-even. If they take risk too much, don't have good strategy, they can have bankruptcy. We usually think Bitcoin miners easily get profit but it is not like this. It is a risky investment for newbies and with each halving, we will have many new miners join this mining industry.

New miners are most vulnerable with market shocks, corrections because their budgets likely are not too deep and they over take leverages, risks. Experienced miners are like senior investors, they know what to do in bull and bear market and how they can reserver their block rewards for halving and bull run.

also, i believe on the reasoning that you don't need to put all the thoughts into texts or words. we can just read between the lines and understand what he wanted to convey to the community. after all, he for sure didn't expect that this creation will reach mainstream as we have now.

why not just be grateful for what we have and be thankful that he created this valuable currency of today's generation. sometimes people are too focused on something not important, and not satisfied for what we are enjoying right now

Whilst there's the similarity and as for Bitcoin, there's no reduction of supply but it's fixed and the last Bitcoin that will be mined shall take a century before it happens, thanks to halving as this makes the mining per block smaller which will lead to the value of each Bitcoin higher and makes it even scarcer.

Yup, and this makes satoshi a legend and genius at the same time. He understands all of these dynamics and when it was made it was during the crash before of the world economy IIRC/CMIIW. While there are projects that have a lot of premined for their developers, some have thrived and became popular but with Bitcoin, it's something else and more than those.

IMO, this is just temporary and sometime in the nearest future there will be solutions with it or when the network isn't swarmed by these brc20 transactions anymore.

Figured that he knew from the get-go or at the very least that bitcoin could go on par with the common commodities that we have in the market way back in 2008, so to jump the trend and also give bitcoin a bit of a fighting chance at longevity they implemented a deflationary feature that would make bitcoins practically scarcer and harder to acquire while at the same time making it even more valuable in the process. I believe he's also had visions of bitcoin becoming a pretty powerful economical tool, hence why he included features like the halving in the first place, and a couple other more that promotes bitcoin's high volatility rate which thus far worked well in its favor.

The thing is that miners have all the time in the world to prepare for when the halving comes, us investors do not have that liberty as we would need to always time our buys and calculate our risks. Just a few of the awesome things that miners enjoy just by actively contributing to the industry.

Satoshi may not have stated directly the reason for the halving protocol but the fact is it is quite obvious.
Now when a currency is easy to create it will increase in circulation making it's value drop. Now miners create new Bitcoins by running nodes and solving complex cryptographic math. As they do this they get block rewards which are calculated by hashrates. The bigger the hash rate the bigger the rewards miners get after every successive block they mine.
Now during halving these hash rates are halved which in turn causes the rewards for each mined block to reduce also thus slowing down the rate at which new Bitcoins are created and preventing declination in value due to excess coins in circulation.

If not for the halving protocol the entire Bitcoin supply would have been mined completely a long time ago, making miners to then rely only on rewards from transaction fees. Besides this would infact make transaction fees to also increase.

Does everything need to written out before you can tell a reason for it? I do not think like that because some reasons are very easy to get. If everything had to be written down in the white paper, it would have been more bulkier. From the name halving, I know it means there will be a reduction of bitcoins, and when something is not so much and available everywhere, makes it more valuable to the few who have it and those who do not have it yet.

From your post, I think you have interest in mining activities for cryptocurrency and want to understand why the halving is as important to the miners as it is to the investor or trader.

BTC halving was implemented to act like a break on the fast evolving and developing initiative of Bitcoin. Although, miners would have to make do with much lower fees due to the halving, still, the proportion of their earnings would be in natural correspondence with they earned before.

The halving is not to put anyone investor or miner at a disadvantage, but to ensure the existence and continuity of a genuine idea which offers hope to those who have grown tired of using fiat for transactions and payments, mostly when it is across borders and much fees are required.
One bliss about the halving that we all must take advantage of is the bull run that follows and it comes with hope for those who are into trading and those who DCA or HoDL because all will not be lost as the value of their BTC still remains intact nonetheless.

We can make assumptions on what the reasons were.

Satoshi wanted the supply to be finite, but didn't want to release them all at once, so opted to introduce new ones in blocks. Here now posed the problem that I would assume led to halving;

• If mining reward was left at 50BTC per block, we would have had the entire apply mined within 8 years, after 420,000 blocks. Way too soon.

• This would have caused an issues cause miners will be left to rely on fees was too early and can lead to loss of majority of miners.

• Including halving into the protocol was genius. It eases miners into life without mining (coinbase) reward and also factored in how price changes. Early on when the price was low, 50 units should be enough incentive, but as the price increases, as low as 1 unit or less will be valuable enough to motivate miners.

Halving is not done because the miners are to receive rewards and we then assume they make the plan and preparation for that to come and when not to happen, immediately once a particular block mined had been achieved, halving occurs and this is been done within the target period of four years intervals, except the entire blocks have been completely mined, miners still have the right to continue the process a d after that, they will depend on transaction fee to generate their incentives.


Why not guaranteed as long as the whole network protocols was being strictly adhere to.


This is right and has always been the norms.


Bitcoin has a limited supply, but is gold limited in supply, I don't think so.


If you want to increase the value of something, try introduced something that works perfectly it sustainability, the more the supply of bitcoin decreases the more the demand and value increases.

With the continuous study of Bitcoin and all its related terminologies, we realize that we all learn the same thing but understand it from different perspectives. Recently, I have been able to figure out 3 interesting tips that are well associated with the Bitcoin halving process. I thought it's worth sharing...

1. Miners have years to plan for the halving, which means they are given the chance to readjust themselves to see if they can continue the mining task. Certainly, profits might not be guaranteed, especially when working as a solo miner. Thanks to @Charles-Tim, who explained how solo miners work in my previous post, I gained valuable insights.

2. Halvings are pre-programmed events that work when a requirement is met. The completion of 210K blocks, which takes approximately every four (4) years, initiates a protocol that reduces the block reward by half.

3. Bitcoin is practically referred to as a commodity, which shows similar characteristics to gold. The process of acquiring either of them will definitely lead to a reduction in supply; i.e., the more we mine, the more they are reduced.

Interestingly, Satoshi never stated a reason for implementing halving in Bitcoin's protocol.

And I am sure you would be looking forward to checking Satoshi's white paper. Your contributions are welcomed, have a blissful day ahead.