Bitcoin moves money forward.
The latest Bitcoin halving is upon us! Built-in scarcity written right into Bitcoin's code, the halving is a direct contributor to the inflation-fighting value of the world's first crypto token.
Halving. Halvening. Whatever you call it, it’s a pretty big deal.
Miners are rewarded for validating transactions on the blockchain in newly created Bitcoin. The “halving” refers to the moment every 4 years when that reward gets cut in half. In April 2024, the reward for securing a block on the blockchain will automatically drop from 6.25 BTC to 3.125 BTC, as it was programmed into Bitcoin’s code.
Unlike fiat currencies, which can be printed by governments or banks to increase the money supply, Bitcoin has a capped supply of 21 million BTC, meaning no additional coins can be created. This inherent scarcity combined with a historic increase in demand contributes to Bitcoin’s general increase in value over time.
The first item ever purchased with Bitcoin was 2 pizzas for 10,000 BTC. So, how much pizza has 1 Bitcoin bought you over the years?
2012: The 1st Bitcoin halving happened on November 28, 2012. The price of Bitcoin was $12.20. Let’s call it one pizza. Probably not a very good one.
2016: The 2nd Bitcoin halving took place on July 9, 2016. The price of Bitcoin was $650. That’s 40+ pizzas!
2020: The 3rd Bitcoin halving was May 11, 2020 and the price of Bitcoin was $8,618. 500 pizzas at least!
2024: The 4th halving hasn’t happened yet, but Bitcoin is already hovering around all-time highs at $70,000, or at least 3,500 pizzas. That’s… a lot of pizza.
Thank you, miners.
Bitcoin miners secure the network by verifying blockchain transactions – without them, none of this is possible. Miners also bear the brunt of halving as their profitability becomes harder to maintain. But like all great builders, miners are innovating through this challenge by leveraging renewable, cheaper energy sources like hydroelectric, wind, and solar. Thank you for doing the hard work so we can transact sovereignly.
Halv a hat!
Commemorate the 4th Bitcoin halving with our limited edition Halving Hat, now available for sale in the Coinbase Shop.
