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⚡Shocking: Bitcoin Halving Near🚀

Croxroad

25 Aug 2023 — 3 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

🚀 Bitcoin Scarcity Intensifies with Halving on the Horizon

Bitcoin's halvings, like the ones Pantera talked about, really squeeze the creation of new Bitcoins. The first halving cut new supply by 17% compared to existing Bitcoin, starting a whole trend.

Things got even crazier during the 2016 halving. The reduction in new supply was a whopping third less.

Fast forward to 2020, and the drop rate surged to 43%. Just wait for the 2024 halving, which might slash nearly half the supply, all thanks to the circulation of Bitcoins already out there, says Pantera.

When those halvings happen one after the other, they make Bitcoin even more deflationary and really show off how scarce it is. That's a big part of why it's valuable. As the drop in new supply gets closer to 50%, Bitcoin's gonna get even harder to find. And that, my friend, could seriously shake up how prices move. Savvy!

Pantera did some digging and here are the results: The rally after each halving keeps getting better. In 2016, it went up 32%, and in 2020, it was a solid 23%. Now, they're thinking the 2024 halving could push Bitcoin up by a cool 47%, maybe even hitting around $35,000.

🍔 Bitcoin Fees: Cheaper Than Big Mac

After high fees in the past, Bitcoin (BTC) now keeps costs consistently lower than a US Big Mac. This means more predictable and affordable transactions.

Fees spiked on May 8, hitting $31.14, but settled around $5.00 until August 24, providing users with steady savings."

Bitcoin transactions used to be costly, but now, for the past two months, the fees have stayed lower than what you'd spend on a Big Mac in the US. This makes sending and receiving Bitcoin more predictable and affordable.

In 1986, The Economist created the Big Mac Index. It helps see if currencies are valued correctly by comparing the cost of a Big Mac in different countries. The US price sets the baseline. Cheaper Big Macs mean stronger currencies.

💳 Bitcoin vs. Money Orders/Cheques

Money orders and cheques are like special pieces of paper you can use instead of giving someone a lot of money in cash. Imagine if you needed to pay a big amount of money, but it's not safe or easy to give that much cash. So, you can write a cheque for that amount of money on a special paper, and give it to the person you owe money to. When they take that paper to the bank and process it, the bank takes the money from your bank account and gives it to the person you owe. This way, you can pay a lot of money without using actual cash.Bitcoin is dancing on a whole other level. Let's have a look.