As we approach the 4th "halving event" of Bitcoin in April 2024, i thought it will be a fun exercise to look back at:
- How much each Bitcoin was worth before the event,
- how rich in USD the solver of each block would be
- had they converted their BTC to USD at that time, vs
- had they waited and hodl; and
- how muck each $100 investment in Bitcoin would be worth, today.
✴️FIRST THING FIRST, A QUICK RECAP ON HALVING
The Bitcoin halving is an event that occurs approximately every four years, or after every 210,000 blocks are mined on the Bitcoin blockchain. During a halving event, the reward that miners receive for validating transactions and adding new blocks to the blockchain is cut in half. This reduction in mining rewards is designed to control the supply of new Bitcoins entering circulation, ultimately leading to a capped supply of 21 million Bitcoins.
The halving event is significant because it reduces the rate at which new Bitcoins are created, thereby increasing scarcity and potentially impacting the price of Bitcoin. Historically, Bitcoin halving events have been associated with bull markets and significant price increases in the months and years following the halving.
✴️THE BIRTH OF BITCOIN:2009
When Bitcoin was created back in 2009, each block was worth 50 BTC! However, nobody knew what Bitcoin was back then, so the USD value obtained by the initial miners are basically zero USD.
A successful miner ( solver of 1 block) in 2009 would:
- Get 50 BTC as a reward
- Earn zero dollars when converted into USD in 2009
- sit on -$3.6m today (march 22, 2014) if they had hodl
✴️ HALVING EVENT: NOV 28, 2012
From 21 million BTC, on this day in 2012, the total supply got slashed in half for the first time!
Total Bitcoin left to be mine after Nov 28, 2012: 10,500,000btc
Price of btc at closing on Nov 28, 2012: $12.20
A successful miner ( solver of 1 block) on Nov 28, 2012 would:
- Get 25 BTC as a reward
- Earn $305 if they converted all 25 BTC into USD in 2012
- sit on - $1.6m today (March 22, 2024) if they had hodl.
✴️SECOND HALVING EVENT: JULY 9, 2016
Total Bitcoin supply on July 9, 2016: 15,750,000
Total Bitcoin left to mine after July 9, 2016: 5,430,000.
Price of BTC at closing July 9, 2016: $640.56 USD
A successful miner (solver of 1 block) on July 9, 2016 would:
- Get 12.5 BTC as a reward
- Earn $8007 USD if they converted all 12.5 BTC into usd in 2016
- Sit on - $1.6m USD today (March 22, 2024), if they had hodl
✴️THIRD HALVING EVENT: MAY 11, 2020
Total Bitcoin supply on may 11, 2020: 18,375,000
Total Bitcoin left to mine after may 11,2020: 2,625,000
Price of BTC at closing on July 9 2016: $8,605.03 USD
A successful miner (solver of 1 block) on may 11,2020 would:
- Get 6.25 BTC as a reward
- Earn $8007 usd if they converted all 6.25 BTC into USD in 2020. Bitcoin prices on having day was around $53,781 USD
- sit on - $800,000 USD today (March 22, 2024, if they had hodl
✴️FOURTH HALVING EVENT: APRIL 16,2024 (watch this space for my update!)
Total Bitcoin supply on April 16, 2024: 19,687,500
Total Bitcoin left to mine after April 16, 2024: 1,312,500
Price of BTC at closing on April 16, 2024
A successful miner (solver of 1 block) on April 16, 2024 would:
- Get 3.125 BTC as a reward
- Earn/sit on TBD if they converted all 3.125 BTC into USD in 2024. BTC price on having da is TBD
This is obviously not investment advice, but if you do the math, you can see how genius the Bitcoin Whitepaper & protocol is in creating demand, especially after each halving! Lets see what happens in the next 4 year. And come back after April 16, 2024 for more update numbers. #BitcoinHalvingMagic #Stayontrend #HotTrends #TrendingCrypto @King_of_info-001