Putting The Current State of Crypto Into Perspective
Crypto markets heat up about every four years. This is no coincidence as it aligns with an event called ‘Bitcoin Halving,’ which occurs every four years. The Bitcoin Halving is a pivotal shift where Bitcoin miners are rewarded with only half the Bitcoin they were awarded prior to the event. This reduction was pre-programmed into Bitcoin's design, halving the pace of new supply creation going forward. Bitcoin miners are individuals who provide computing power to verify transactions on the Bitcoin blockchain. In return for their services in verifying transactions and supporting the blockchain, they are compensated with Bitcoin, similar to earning transaction fees. This setup ensured that most of the Bitcoin supply was issued early on, and rewards will continue to decrease towards zero. New supply will continue being added until around the year 2140. For reference, there are 19.6 million Bitcoins in circulation, with the total supply capped at 21 million.
