The much talked about third halving is just a week away, but what is it all about?
Yes it is when the reward in Bitcoin per block mined will be half of the amount of Bitcoin it use to reward, and very essential to Bitcoin’s value proposition as a scarce digital asset, the halving is drawing global attention amid ongoing economic uncertainty. But quality context on this aspect of Bitcoin’s intricate, ground-breaking technology can be difficult to come by.
To help you better understand its potential impact, The Kraken Intelligence team, recently released a research note, entitled “The Halving: Trends & Implications of Bitcoin’s Supply Inflation Mechanism.”
At just 11 pages, the report aims to give beginners a succinct yet comprehensive analysis of the halving, covering a range of topics, including:
- Historical analysis of the first two halvings: You’ll get an overview of price activity surrounding the first two halvings, including charts and an analysis of the patterns common to both.
- Bitcoin as a store of value: Understand the connection between the halving and Bitcoin’s monetary policy, and how disinflationary assets have proven to be a better store of value over time.
- The scarcity of Bitcoin: Learn how scarcity is commonly measured by the stock-to-flow (SF) ratio and see how Bitcoin’s SF ratio is affected by the next halving. Also, see how Bitcoin’s SF ratio compares to gold and other commodities.
- Impact on miners: Understand how Bitcoin miners are affected by the next halving. You’ll learn how much mining revenue comes from block rewards vs transactions fees, and how much transaction fee income would need to increase in order to fill the gap in block revenue.
For more insights into the halving, read the Kraken’s Team full report.
From reading Kraken’s report, we at Bitcoin Aruba can only say what we have been saying for years, keep stacking sats!