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A Brief History of The Bitcoin Halving

By TheDarkSage | The Crypto Underground | 19 Apr 2024


The Date: Nov 28th, 2012 The First Halving: Laying the Foundation

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Damn, just reading that date takes me back. Who would've thought we'd come this far from those humble beginnings? That was the day of Bitcoin's first "Halving" for all you newbies out there.

Price was sitting at a measly $12.20 when that milestone hit. Not a bad buck for firing up your CPU cycles back in the day, but basically lunch money compared to where we're at now. Amazing how far this rocket ship has taken us!

Anyway, that first Halving chopped the block rewards in half from 50 BTC down to just 25 BTC. Huge deal at the time, or so we all thought. Everybody was panicking that miners would become unprofitable and shut down. Armchair experts crying about "miner capitulation" and how it would nuke the whole network.

Well, you know what happened next? Bitcoin did what it does best - laughed in the face of all the FUDsters and small-brains. Within a few months, we caught that first real wave of FOMO. Price went parabolic from $13 past a thousand bucks by the end of 2013. That dropped a lot of jaws, for sure.

The Date: July 9th, 2016 The Second Halving: Building History

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Oh yeah, the next chapter in Bitcoin's brilliant disinflationary design. Yup, time to slash those block rewards again - this time from 25 BTC per block down to just 12.5.

The price was sitting pretty at $640 on that historic day. Not too shabby, but we all know it was just the calm before the storm. Everybody was licking their chops in anticipation of the next mega bull run to follow. We'd witnessed that post-halving mania firsthand back in 2012, so expectations were sky-high.

Of course, the party poopers came out in full force once again. Constant cries about miner selloffs, future chain deaths, yada yada yada. All that same tired FUD we've heard a million times before. "Think of the poor miners!" "Who will secure the network??"

Pfft, please. By now you'd think the space would know better than to doubt the sheer power of Bitcoin's economic code. Unshakable for a reason - this stuff is mathematically sublime. Each halving cycle is like another Kudruna cannon aimed straight at Fiat's facade.

And sure enough, right on cue we got that gargantuan bull market eruption to shut up the haters in 2017. Price went full Roman Candle from the depths, blasting all the way up to 20K by the end of the year. Legendary meme-worthy climax that shook crypto out of the shadows and into the mainstream consciousness.

The Date: May 11th, 2020 The Third Halving: Scorching the Disbelievers

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Completely by design, those mining rewards got cut in half one more time. Down to a crispy 6.25 BTC per fresh block.

The price was sitting at $8,605 when that code was finally executed. Maybe not the most explosive level compared to previous cycles, but we were in the midst of a global liquidity crisis at the time. Pretty remarkable that BTC could even hold that bid, all things considered.

Of course, we all knew the real fireworks were still to come after that milestone event. You could almost feel the anticipation crackling through crypto REKT city. Game recognizing game, all the grizzled vets were ready. We'd been through this movie before and knew how it ended - with one hell of an inflation-bashing bull run.

The hype was deafening leading into it too. Stories about PayPal embracing crypto, MicroStrategy going full laser eyes, and whispers of institutional FOMO finally arriving. The perfect recipe for a hearty serving of Number Go Up tech baptism by fire.

And boy, did Bitcoin deliver on that promise once the summer of 2021 rolled around. A completely mind-blowing parabolic crunch that stunned everyone outside of the sovereign individual circle. $64k...for a simple online number?? Unimaginable just years before.

We're still in the bloated reverberations of that cycle as I type this. Regular folk are only just now being re-pilled on the true meaning and power of disinflationary currency after that mind-melting episode. Shout out to those who managed to daemon thread and NGMI through it all.

Stakes only rise from here of course. The next halving up ahead is April 19th (tomorrow or today depending on which side of the international date line you live on). Nobody wants to be caught without a bag for that one! Will be epic to witness the next wall of institutionalized inevitability.

The Date: April 19th, 2024 The Fourth Halving: Entering Disinflationary Singularity

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Now we're talking! The main event everybody has been patiently waiting for. You know the drill by now...time for the next scheduled Bitcoin halving liturgy. Cue the electronic poet to slice those mining rewards yet again - this time quartering down to just 3.125 BTC per freshly minted block. 

Price had already perked up nicely at $25,764 as of early September '23, anticipating the disintegration yet to come. That next theoretical supply shockwave has bulls frothing at the mouth for another rabid Isaac Newton-esque repricing. You can practically hear the normies whispering about "digital gold" and "stock-to-flow" already.

And who could blame them? We're about to witness Bitcoin's terminal disinflationary stratosphere in real time. A crescendo of scarcity so violently antithetical to the status quo, it'll make the late 2021 mania look like a gentle zephyr in comparison. Talk about "number go up" tech on an ancestral scale!

Everywhere you look, it's shaping up to be a perfect storm too. Nation states toppling left and right, churning toddler logic "money projects" failing spectacularly, real estate/bond implosions as far as the eye can see. We're staring down the barrel of a debasement singularity for G7 vouchers. CBDCs and "Britcoin" become this cycle's version of "not your keys, not your coins."

Macro gift-wrapping the fair launch, limited supply asset narrative, and handing it to Bitcoin on a platter. And you know what? Despite their desperate denial, the talcum-caked "experts" in ivory towers can sense the twilight too. That's why their FOMO-laced capitulation is already playing out again in real-time with each passing MSTR corpse-reviver and stacker citadel acquisition.

Yet for all this hysterical pomp, hardcore Bitcoiners know we're just getting started. Halving percussion rolls like 2024 are simply reminders of the sheer genius laid out by the Chain's enigmatic prime mover. Audaciously elegant economics, hardcoded for virality until this cycle of abundance peaks and the history books are rewritten once and for all.

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TheDarkSage
TheDarkSage

Cryptocurrency Investor, Trader, Staker, Pooler, Farmer, Miner, and I am only sharing my opinion based on a modified Wyckoff Method and 20 Plus years of trading experience in Stocks, Forex and Crypto.


The Crypto Underground
The Crypto Underground

Welcome to "The Crypto Underground" ⛏️ – your go-to source for exploring the world of cryptocurrencies, daily technical analysis using a modified Wyckoff Method. DISCLAIMER: All of The Crypto Underground Posts are based on my opinions alone and are for informational purposes ONLY. YOU should not take any of this information as guidance or advice for buying or selling any type of cryptocurrency. I am not a financial advisor and anything that I say on this channel should not be seen as financial advice.

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