Bitcoin Halving Executes, Defying Era of Money Printing and Currency Debasement With ‘Quantitative Tightening’

Bitcoin has officially executed a systematic, hard-coded and highly anticipated event known as the halving.

The event, which happens roughly every four years, essentially cuts the Bitcoin reward that miners receive for powering the network in half, reducing the new supply of BTC entering the market.

The reward for mining a block has reduced from 6.25 BTC to 3.125 BTC.

The halving does not directly impact the price of BTC and is not like a stock split.

Instead, it fulfills and showcases Bitcoin’s scarcity, its ever-decreasing rate of inflation and its steady climb to a maximum supply of 21 million BTC.

This cycle, crypto advocates have adopted the phrase “quantitative tightening” when referring to the halving, highlighting the ways in which BTC is hard, predictable, transparent and scarce in an era of quantitative easing, money printing and monetary debasement.

Whether it’s coincidence, correlation or the macro business cycle playing out, Bitcoin’s price jumped in the months following its first three halvings.

This year, in a first, BTC surpassed its previous all-time high before the halving, reaching $73,737 on March 14th due in part to the rapid rise of Bitcoin ETFs in the US.

In the last week, Bitcoin has significantly retraced along with traditional assets in a de-risking event triggered by tensions between Israel and Iran.

BTC is trading at $63,811 at time of publishing, up 0.7% in the last 24 hours.

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Antonov Serg/Nikelser Kate

The post Bitcoin Halving Executes, Defying Era of Money Printing and Currency Debasement With ‘Quantitative Tightening’  appeared first on The Daily Hodl.