The Halving Issue: Letter From The Editors

First, 50.

Then, 25.

Finally, 12.5.

After that, 6.25.

And now, 3.125.

4 halvings later, we enter the fifth of 33 epochs of Bitcoin. The primary 32 epochs, in Bitcoin-terms, final 210,000 blocks, with the thirty third lasting till the warmth demise of the universe.

At 10 minutes per block, on common, which means nearly each 4 years, Bitcoin cuts its provide issuance in half. The precise numerical finite-ness that comes downstream of this mechanism –– that defines bitcoin’s shortage in a virtually infinite universe –– is in the end irrelevant. Satoshi might have began at a 100 bitcoin block reward and we’d have arrived at nearly the identical place at the moment. However there are some statistical conveniences of beginning at 50, comparable to that fifty% of all bitcoin to ever be issued are in the course of the first epoch. And thus, 25% of all bitcoin to ever be issued had been issued within the second, and so forth, and so forth.

Talking of fourth, the fourth epoch terminates within the fourth month of 2024 on the completion of the fourth halving at block 840,000. Rather a lot occurred the fourth time round: El Salvador making bitcoin authorized tender, Wall Road’s ETF play, the Taproot-enabling softfork, and even Ordinals.

Each new halving brings up the legitimacy of cycle idea, of whether or not or not provide issuance might be “priced in”.

Every halving is a time of self-reflection for bitcoiners and the tradition they curate. Not solely is Bitcoin arguably not a counter-culture with nation-state and Wall-street adoption (co-option?), however it’s not a mono-culture. Whereas many issues had been born throughout this epoch, it’s maybe the demise of the homogenous bitcoiner that’s the most obvious.

Bitcoin is for anybody; Salvadorans, Larry Fink, Bored Apes, and ESG’ers.

Welcome to the Fifth Epoch.

The Editors