Today, perhaps the most prevalent topics of discussion revolve around the decrease in miners' revenue following the halving event and unfounded scenarios regarding the network's vulnerability. However, the data portray a different narrative than what might be expected.
As you may know, in Bitcoin halving events, the reward for creating each block reduces by 50% every 210,000 blocks. This reduction is based on the issuance of new coins in the Bitcoin proof-of-work consensus, with the average time to mine each block being 10 minutes. Consequently, with a 50% reduction in Bitcoin issuance per block, in each 4-year cycle of halving, fewer bitcoins are produced, making this digital currency even scarcer.
Regarding miners' income, the first metric indicates a decrease in miners' income in Bitcoin with each 4-year halving cycle. Meanwhile, according to the second chart, the decrease in Bitcoin supply and its inflation rate, coupled with its price growth due to scarcity and reduced supply, signify an increase in miners' income in dollars over time.
Finally, focusing on the third metric, the decrease in the issuance of new bitcoins leads to an increase in the Stock-to-Flow Ratio in each 4-year cycle, making this popular digital asset scarcer and more valuable with each cycle.
Written by Crazzyblockk