3 interesting tips about Bitcoin halving

[ColdLava40]

With the continuous study of Bitcoin and all its related terminologies, we realize that we all learn the same thing but understand it from different perspectives. Recently, I have been able to figure out 3 interesting tips that are well associated with the Bitcoin halving process. I thought it's worth sharing...

1. Miners have years to plan for the halving, which means they are given the chance to readjust themselves to see if they can continue the mining task. Certainly, profits might not be guaranteed, especially when working as a solo miner. Thanks to @Charles-Tim, who explained how solo miners work in my previous post, I gained valuable insights.

2. Halvings are pre-programmed events that work when a requirement is met. The completion of 210K blocks, which takes approximately every four (4) years, initiates a protocol that reduces the block reward by half.

3. Bitcoin is practically referred to as a commodity, which shows similar characteristics to gold. The process of acquiring either of them will definitely lead to a reduction in supply; i.e., the more we mine, the more they are reduced.

Interestingly, Satoshi never stated a reason for implementing halving in Bitcoin's protocol.

And I am sure you would be looking forward to checking Satoshi's white paper. Your contributions are welcomed, have a blissful day ahead.

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[Dunamisx]

1. Miners have years to plan for the halving, which means they are given the chance to readjust themselves to see if they can continue the mining task.

Halving is not done because the miners are to receive rewards and we then assume they make the plan and preparation for that to come and when not to happen, immediately once a particular block mined had been achieved, halving occurs and this is been done within the target period of four years intervals, except the entire blocks have been completely mined, miners still have the right to continue the process a d after that, they will depend on transaction fee to generate their incentives.

Certainly, profits might not be guaranteed, especially when working as a solo miner.

Why not guaranteed as long as the whole network protocols was being strictly adhere to.

2. Halvings are pre-programmed events that work when a requirement is met. The completion of 210K blocks, which takes approximately every four (4) years, initiates a protocol that reduces the block reward by half.

This is right and has always been the norms.

3. Bitcoin is practically referred to as a commodity, which shows similar characteristics to gold. The process of acquiring either of them will definitely lead to a reduction in supply; i.e., the more we mine, the more they are reduced.

Bitcoin has a limited supply, but is gold limited in supply, I don't think so.

Interestingly, Satoshi never stated a reason for implementing halving in Bitcoin's protocol.

If you want to increase the value of something, try introduced something that works perfectly it sustainability, the more the supply of bitcoin decreases the more the demand and value increases.

[Upgrade00]

Interestingly, Satoshi never stated a reason for implementing halving in Bitcoin's protocol.

We can make assumptions on what the reasons were.

Satoshi wanted the supply to be finite, but didn't want to release them all at once, so opted to introduce new ones in blocks. Here now posed the problem that I would assume led to halving;

• If mining reward was left at 50BTC per block, we would have had the entire apply mined within 8 years, after 420,000 blocks. Way too soon.

• This would have caused an issues cause miners will be left to rely on fees was too early and can lead to loss of majority of miners.

• Including halving into the protocol was genius. It eases miners into life without mining (coinbase) reward and also factored in how price changes. Early on when the price was low, 50 units should be enough incentive, but as the price increases, as low as 1 unit or less will be valuable enough to motivate miners.

[Cryptomultiplier]

With the continuous study of Bitcoin and all its related terminologies, we realize that we all learn the same thing but understand it from different perspectives. Recently, I have been able to figure out 3 interesting tips that are well associated with the Bitcoin halving process. I thought it's worth sharing...

1. Miners have years to plan for the halving, which means they are given the chance to readjust themselves to see if they can continue the mining task. Certainly, profits might not be guaranteed, especially when working as a solo miner. Thanks to @Charles-Tim, who explained how solo miners work in my previous post, I gained valuable insights.

2. Halvings are pre-programmed events that work when a requirement is met. The completion of 210K blocks, which takes approximately every four (4) years, initiates a protocol that reduces the block reward by half.

3. Bitcoin is practically referred to as a commodity, which shows similar characteristics to gold. The process of acquiring either of them will definitely lead to a reduction in supply; i.e., the more we mine, the more they are reduced.

Interestingly, Satoshi never stated a reason for implementing halving in Bitcoin's protocol.

And I am sure you would be looking forward to checking Satoshi's white paper. Your contributions are welcomed, have a blissful day ahead.

From your post, I think you have interest in mining activities for cryptocurrency and want to understand why the halving is as important to the miners as it is to the investor or trader.

BTC halving was implemented to act like a break on the fast evolving and developing initiative of Bitcoin. Although, miners would have to make do with much lower fees due to the halving, still, the proportion of their earnings would be in natural correspondence with they earned before.

The halving is not to put anyone investor or miner at a disadvantage, but to ensure the existence and continuity of a genuine idea which offers hope to those who have grown tired of using fiat for transactions and payments, mostly when it is across borders and much fees are required.
One bliss about the halving that we all must take advantage of is the bull run that follows and it comes with hope for those who are into trading and those who DCA or HoDL because all will not be lost as the value of their BTC still remains intact nonetheless.

[Stepstowealth]

Interestingly, Satoshi never stated a reason for implementing halving in Bitcoin's protocol.

Does everything need to written out before you can tell a reason for it? I do not think like that because some reasons are very easy to get. If everything had to be written down in the white paper, it would have been more bulkier. From the name halving, I know it means there will be a reduction of bitcoins, and when something is not so much and available everywhere, makes it more valuable to the few who have it and those who do not have it yet.

[Mia Chloe]

Satoshi never stated a reason for implementing halving in Bitcoin's protocol.

Satoshi may not have stated directly the reason for the halving protocol but the fact is it is quite obvious.
Now when a currency is easy to create it will increase in circulation making it's value drop. Now miners create new Bitcoins by running nodes and solving complex cryptographic math. As they do this they get block rewards which are calculated by hashrates. The bigger the hash rate the bigger the rewards miners get after every successive block they mine.
Now during halving these hash rates are halved which in turn causes the rewards for each mined block to reduce also thus slowing down the rate at which new Bitcoins are created and preventing declination in value due to excess coins in circulation.

If not for the halving protocol the entire Bitcoin supply would have been mined completely a long time ago, making miners to then rely only on rewards from transaction fees. Besides this would infact make transaction fees to also increase.

[panganib999]

With the continuous study of Bitcoin and all its related terminologies, we realize that we all learn the same thing but understand it from different perspectives. Recently, I have been able to figure out 3 interesting tips that are well associated with the Bitcoin halving process. I thought it's worth sharing...

1. Miners have years to plan for the halving, which means they are given the chance to readjust themselves to see if they can continue the mining task. Certainly, profits might not be guaranteed, especially when working as a solo miner. Thanks to @Charles-Tim, who explained how solo miners work in my previous post, I gained valuable insights.

2. Halvings are pre-programmed events that work when a requirement is met. The completion of 210K blocks, which takes approximately every four (4) years, initiates a protocol that reduces the block reward by half.

3. Bitcoin is practically referred to as a commodity, which shows similar characteristics to gold. The process of acquiring either of them will definitely lead to a reduction in supply; i.e., the more we mine, the more they are reduced.

Interestingly, Satoshi never stated a reason for implementing halving in Bitcoin's protocol.

And I am sure you would be looking forward to checking Satoshi's white paper. Your contributions are welcomed, have a blissful day ahead.

Figured that he knew from the get-go or at the very least that bitcoin could go on par with the common commodities that we have in the market way back in 2008, so to jump the trend and also give bitcoin a bit of a fighting chance at longevity they implemented a deflationary feature that would make bitcoins practically scarcer and harder to acquire while at the same time making it even more valuable in the process. I believe he's also had visions of bitcoin becoming a pretty powerful economical tool, hence why he included features like the halving in the first place, and a couple other more that promotes bitcoin's high volatility rate which thus far worked well in its favor.

The thing is that miners have all the time in the world to prepare for when the halving comes, us investors do not have that liberty as we would need to always time our buys and calculate our risks. Just a few of the awesome things that miners enjoy just by actively contributing to the industry.

[tabas]

3. Bitcoin is practically referred to as a commodity, which shows similar characteristics to gold. The process of acquiring either of them will definitely lead to a reduction in supply; i.e., the more we mine, the more they are reduced.

Whilst there's the similarity and as for Bitcoin, there's no reduction of supply but it's fixed and the last Bitcoin that will be mined shall take a century before it happens, thanks to halving as this makes the mining per block smaller which will lead to the value of each Bitcoin higher and makes it even scarcer.

If not for the halving protocol the entire Bitcoin supply would have been mined completely a long time ago, making miners to then rely only on rewards from transaction fees.

Yup, and this makes satoshi a legend and genius at the same time. He understands all of these dynamics and when it was made it was during the crash before of the world economy IIRC/CMIIW. While there are projects that have a lot of premined for their developers, some have thrived and became popular but with Bitcoin, it's something else and more than those.

Besides this would infact make transaction fees to also increase.

IMO, this is just temporary and sometime in the nearest future there will be solutions with it or when the network isn't swarmed by these brc20 transactions anymore.

[AmoreJaz]

Interestingly, Satoshi never stated a reason for implementing halving in Bitcoin's protocol.

Does everything need to written out before you can tell a reason for it? I do not think like that because some reasons are very easy to get. If everything had to be written down in the white paper, it would have been more bulkier. From the name halving, I know it means there will be a reduction of bitcoins, and when something is not so much and available everywhere, makes it more valuable to the few who have it and those who do not have it yet.

also, i believe on the reasoning that you don't need to put all the thoughts into texts or words. we can just read between the lines and understand what he wanted to convey to the community. after all, he for sure didn't expect that this creation will reach mainstream as we have now.

why not just be grateful for what we have and be thankful that he created this valuable currency of today's generation. sometimes people are too focused on something not important, and not satisfied for what we are enjoying right now

[hd49728]

1. Miners have years to plan for the halving, which means they are given the chance to readjust themselves to see if they can continue the mining task. Certainly, profits might not be guaranteed, especially when working as a solo miner.

Miners have to build up their strategy because mining is like an investment but requires very long time to get break-even. If they take risk too much, don't have good strategy, they can have bankruptcy. We usually think Bitcoin miners easily get profit but it is not like this. It is a risky investment for newbies and with each halving, we will have many new miners join this mining industry.

New miners are most vulnerable with market shocks, corrections because their budgets likely are not too deep and they over take leverages, risks. Experienced miners are like senior investors, they know what to do in bull and bear market and how they can reserver their block rewards for halving and bull run.

[philipma1957]

Interestingly, Satoshi never stated a reason for implementing halving in Bitcoin's protocol.

We can make assumptions on what the reasons were.

Satoshi wanted the supply to be finite, but didn't want to release them all at once, so opted to introduce new ones in blocks. Here now posed the problem that I would assume led to halving;

• If mining reward was left at 50BTC per block, we would have had the entire apply mined within 8 years, after 420,000 blocks. Way too soon.

• This would have caused an issues cause miners will be left to rely on fees was too early and can lead to loss of majority of miners.

• Including halving into the protocol was genius. It eases miners into life without mining (coinbase) reward and also factored in how price changes. Early on when the price was low, 50 units should be enough incentive, but as the price increases, as low as 1 unit or less will be valuable enough to motivate miners.

He should have made it 1 block every 20 minutes not 1 block every 10.

We are now feeling the first effects of what I call the "real flippening".

Here is what the real flippening is.

Rewards ------------ fees

50.0000                under 0.2 btc   2009-2012   
25.0000                under 0.4 btc   2012-2016
12.5000                under 1.0 btc   2016-2020
  6.2500                under 2.0 btc   2020-2024
  3.1250                under 3.0 btc   2024-2028      first taste of flippening
  1.5625                under 3.0 btc   2028-2032         the flippening

So 2024 to 2032 will be new and flipped.
miners are prepping by figuring ways to push the fees to new highs.
Should be interesting.

[BlackBoss_]

Here is what the real flippening is.

Rewards ------------ fees

50.0000                under 0.2 btc   2009-2012  
25.0000                under 0.4 btc   2012-2016
12.5000                under 1.0 btc   2016-2020
  6.2500                under 2.0 btc   2020-2024
  3.1250                under 3.0 btc   2024-2028      first taste of flippening
  1.5625                under 3.0 btc   2028-2032         the flippening

So 2024 to 2032 will be new and flipped.
miners are prepping by figuring ways to push the fees to new highs.
Should be interesting.

Some detailed tables about flippenings. We are still in a last flippening time between a curve and a flat area of the Bitcoin supply curve. When the flat area is touched, people will discuss like Will it be the end of Bitcoin because Bitcoin miners will receive less coins from mining. I read those discussions many times and similar topics like will Bitcoin die after 2140 when all 21 million bitcoins in total supply already mined by miners.

It's too far but if Bitcoin adoption continues to be bigger, Bitcoin price will be higher and miners will have more money from transaction fees like we see since 2023 February with Ordinals spam on Bitcoin network. I think it will not be matter of miners if block rewards halve and halve.

Controlled supply
Equivalent Network Time

[Husires]

Bitcoin halving, in addition to the increase in demand, is what makes the price change in this sharp manner, as every 4 years we witness an increase in the price of Bitcoin, which greatly enhances adoption. Therefore, halving may represent one of the reasons for making Bitcoin grow and spread, but over time, its effect will be, and then, if not supply. Significantly, the price will be stable or begin to decline, or at best not be affected by the 4-year cycles. Then, what pushes the industry forward is decentralization.

[Fundamentals Of]

As far as what I've read is concerned joining a mining pool is probably more efficient than mining solo especially if you have limited resources and your devices aren't the best ones that can produce competitive hash rates.

I guess Satoshi gradually reducing mining rewards is also imitating gold mining's characteristic. The more gold mined, the longer miners are extracting the mineral, the more people mining gold, the lesser the supply becomes and the lower the amount mined for miners. The supply is dwindling. It's logical for the output of mining to also decrease.

[Charles-Tim]

3. Bitcoin is practically referred to as a commodity, which shows similar characteristics to gold. The process of acquiring either of them will definitely lead to a reduction in supply; i.e., the more we mine, the more they are reduced.

At least for now bitcoin and gold supply have different characteristics. Since bitcoin has been created, the supply is meant to be 21 million. Which means after the whole 21 million BTC has been mined, there will no more be new BTC that would be introduced into the calculation. But check this about gold:

Major gold deposits discovered in Uganda

On June 7 2022, approximately 31 million metric tonnes of gold was declared by their president to have been discovered in the country. There are many of this kind of news that a country will discover gold or more gold deposit. Which means the supply are increasing.

These are the gold on the land surface. There are still gold in the earth crust and beneath the ocean but which modern day technology can not mine. Also there are gold deposit outside the earth on other planets. Also can be asteroids that consist of gold. Example is Psyche 16. We do not know how advance the world would be in some centuries to this time and we can not just conclude that gold deposit is limited.

[Apocollapse]

Well, this is not tips, but much more like what you understand about mining and halving event.

Unpopular opinion: halving is actually has no relation with bull run, but many people think due to Bitcoin become scarcer, it makes Bitcoin price increase.

Interestingly, Satoshi never stated a reason for implementing halving in Bitcoin's protocol.

That's true, but he indirectly stated it was for reward to miners. IIRC someone was saying halving happens every four years was due to math.

Right.  Otherwise we couldn't have a finite limit of 21 million coins, because there would always need to be some minimum reward for generating.  In a few decades when the reward gets too small, the transaction fee will become the main compensation for nodes.  I'm sure that in 20 years there will either be very large transaction volume or no volume.

[bettercrypto]

Maybe Bitcoin can be considered digital gold, but of course it's still very different from real gold, and all crypto enthusiasts know this. Also, with the upcoming bitcoin halving, I still believe that there will still be rewards for the miners.

I'm not sure if the bitcoin fee will increase after the bitcoin halving. Is that possible? because if it was just now or recently, there was a crisis in the bitcoin fee, especially after the Halving, right?

[the rise]

what makes me interested about halving is that I think at that time halving was the news that had the most positive influence on bitcoin, we can't increase the price of bitcoin with small positive things like investment from companies or regulations, but if it's about halving I think everyone agrees This is a form of Bitcoin's positive trend every few years. but I am very curious if bitcoin is completely mined will the halving also end. So what's interesting next?

[Julien_Olynpic]

By the way, we don’t know exactly why Satoshi chose a 4-year period for the interval between halvings. Perhaps there is some rational reason for choosing an even number greater than two for this interval. The 4-year period coincides with the intervals between presidential elections in many countries, particularly the United States. Indeed, there are electoral cycles in the behavior of assets, for example, in the stock market. There are also 4-year astrological cycles. But we can say that 4 years is a long enough period to prepare for the next halving of the subsidy for the mined block of Bitcoin.

[kryptqnick]

We don't know the exact reason of halving, but it seems to be a great and simple way to introduce a way of slowing down the pace at which new coins enter the circulating supply, and making the process fully autonomous (no centralized authority is required to control the supply).
Cycles also give people a feeling of something being completed, give motivation and things to look forward to in the new cycle. Perhaps it's because of how we're used to living. We have days as cycles of Earth's rotation around its own axis, years as rotations around the Sun, so cycles are just something we are very used to. Many look forward to halvings, anticipating an increase of BTC price afterwards, and miners can try to make the most out of the rewards before they get reduced.