Cryptocurrencies

In the aftermath of its 3rd Halving, Bitcoin is rarer than ever

The day of May 11, 2020 will forever be etched in the history of Bitcoin. It was on this day that the third Bitcoin Halving took place, dropping the reward allocated to miners to 6.25 BTC. Bitcoin is still becoming a little rarer than before. I suggest you come back in detail to this historic day.

Halving day

Waited for several months by the whole community Bitcoin, the third Halving has finally taken place Monday, May 11, 2020. The sharp increase in Hash rate of the Bitcoin network as it approached the 630,000 block allowed this event to happen in advance.

Google’s search volumes for the term “Bitcoin Halving” had confirmed in recent weeks that the event was now far beyond the world of cryptocurrencies. The world of traditional finance is interested in Bitcoin, and for investors Wall Street, this day was also important.

See Bitcoin becoming rarer than ever, with annual supply inflation falling below 2% to attach to 1.8%, has something quite tasty. This is all the more so as it occurs at a time when the quantity of American dollars in circulation has just increased by 21.6% during 365 last days.

The Fed’s desire to print the US dollar endlessly is confirmed day after day in the midst of the economic crisis of 2020.

Bitcoin sees inflation reduce automatically as fiat currencies are produced endlessly

Paul Tudor Jones announces owning 2% of his fortune in Bitcoin

Proof of the interest of the traditional finance world for Bitcoin, the famous hedge fund manager Paul Tudor Jones was the guest of the show Squawk Box on CNBC the morning of the third Bitcoin Halving.

Paul Tudor Jones detonated last week by announcing in a letter sent to its investors that he now favored Bitcoin over gold to guard against the great monetary inflation that we are currently experiencing.

Far from being a Bitcoin fan, Paul Tudor Jones simply said to be pragmatic choosing the fastest horse in the profit race.

Following the announcement that had the effect of a small bomb, the Squawk Box program jumped at the chance by inviting Paul Tudor Jones for an interview on the day of the third Bitcoin Halving.

As a reminder, Squawk Box is the morning of CNBC which is followed by a lot of investors from Wall Street.

During the interview, Paul Tudor Jones confirmed his positions on Bitcoin, saying in particular:

“Wall Street could witness the historic birth of a store of value with Bitcoin.”

Paul Tudor Jones

Paul Tudor Jones then clarified that all the money you keep in cash right now loses value due to inflation unprecedented that the world knows.

In this sense, Bitcoin is the perfect asset to guard against this currency devaluation.

On a personal level, Paul Tudor Jones said that he owned almost 2% of its Bitcoin assets. If it’s difficult to know the exact value of Paul Tudor Jones’s assets right now, we can estimate that he already has more than 100 million dollars in Bitcoin.

Bitcoin price reacts positively to Paul Tudor Jones interview

These enthusiastic statements by such a well-known Wall Street macro investor as Paul Tudor Jones gave rise to a very enthusiastic reaction in the Bitcoin market.

In just one hour, the price of Bitcoin has increased by + 5% even exceeding $ 9K on some exchange platforms:

Bitcoin price rose 5% following Paul Tudor's interview

However, it didn’t last more than a few hours.

Uncertainty about the market reaction to the third Bitcoin Halving then drove the price of Bitcoin down around $ 8.4K. Some obviously took the opportunity to make a round trip. They sold some of their Bitcoins when their price went up to $ 9K.

Bitcoin miners produce blocks at breakneck speed

Originally scheduled to take place on May 12, 2020 at around 1 a.m. in UTC time, the date and time for the third Halving has continued to advance as we approached the fateful moment.

The average time between two blocks of transactions is 10 minutes on the Bitcoin Blockchain.

However, when the Hash Rate increases sharply, this delay is logically reduced. This remains so as long as there has been no further adjustment to the mining difficulty. As a reminder, this takes place every 2016 blocks mined on the Bitcoin network.

This is exactly what happened on the afternoon of May 11, 2020. Bitcoin miners even went wild between 6 p.m. and 7 p.m. (in UTC time). During this time, they managed to produce 12 blocks:

Bitcoin miners produce 12 blocks in one hour

This frantic production of blocks approaching Halving can be explained by the will of some miners to want make the most of their mining equipment one last time.

Following the Halving, many miners will capitulate because of an activity which will no longer be profitable enough for them.

All of this is reflected in the new historic Hash Rate record on the Bitcoin network. He reached 137 PE / s yesterday:

Bitcoin Hash Rate record on May 11, 2020

Observed for several days, the trend of rising transaction costs was also confirmed on this day of Bitcoin’s third Halving:

Increasing transaction fees on the

While the average transaction costs on the network are generally below 0.50 dollars, they’ve been located for several days now between 2 and 3 dollars.

Block 629,999 is mined by F2Pool with an iconic message inside

Bitcoin is just around the corner 12 blocks of his third Halving. Production pace returns to normal. It will take more than 2 hours before the third Bitcoin Halving finally takes place.

F2Pool finally has the honor of producing the last block with a reward at 12.5 BTC in the history of Bitcoin.

It’s about block 629,999 in which F2Pool adds an iconic message inside the coinbase transaction:

R🐟NYTimes 09 / Apr / 2020 With $ 2.3T Injection, Fed’s Plan Far Exceeds 2008 Rescue Mined

This message obviously refers to the message that Satoshi Nakamoto had written in the genesis block of Bitcoin on January 3, 2009.

For the story, here is the screenshot of the famous block 629,999 of the Bitcoin Blockchain:

Bitcoin becomes rarer following this block 629,999

Bitcoin season 4 begins

As expected, the third Bitcoin Halving took place at block 630,000. Bitcoin confirms the inevitable side of its calendar which will make it the rarest asset in the world. Whatever the geopolitical conditions (economic crisis, pandemic, wars, …), Bitcoin continues its march forward.

Bitcoin monetary policy has the advantage of being automatic, in addition to being completely transparent and known to everyone in advance.

This is a stark contrast to fiat coins. The best example is the American dollar, the management of which depends exclusively on the arbitrary side of the powerful.

In the incredible time we live in, which has seen inflation of the US dollar reach 21.6% during Last 365 days, Bitcoin once again highlights the virtues of quantitative hardening by becoming even rarer with annual inflation falling to 1.8%.

Only gold has even slightly lower annual inflation at 1.6%.

All of this will be corrected in 209,924 blocks, during the year 2024, when the fourth Bitcoin Halving will take place. Bitcoin’s annual inflation will then fall to 0.8%. Nothing can stop this Bitcoin monetary policy which is completely automatic.

Bitcoin will then officially become the rarest asset in the world.

While waiting to know what the price of Bitcoin will be at that time, the first hours after the third Halving saw the price of Bitcoin remain stable around $ 8,600.

The weeks and months ahead will no doubt be much more exciting to follow. See renowned Wall Street investors like Paul Tudor Jones realize that Bitcoin will soon be rarer than gold, and its incredible potential, is also adding a lot of interest to Bitcoin season 4.

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