Bitcoin Halving: ‘Quantitative Tightening’ in a World of Money Printing

Halving Event

Bitcoin has undergone a scheduled event called a halving. This event, which occurs every four years, reduces the reward for miners who power the network by half. The reward has now dropped from 6.25 BTC to 3.125 BTC per block.

Not a Price Impact

Unlike a stock split, the halving doesn’t directly affect Bitcoin’s price. Instead, it highlights the scarcity of Bitcoin and its decreasing inflation rate. The maximum supply of Bitcoin remains at 21 million.

‘Quantitative Tightening’

Crypto enthusiasts have coined the term “quantitative tightening” to describe the halving. This refers to the way Bitcoin’s supply is strictly controlled and predictable, in contrast to the trend of quantitative easing and money printing in traditional financial systems.

Historical Price Impact

Historically, Bitcoin’s price has tended to rise in the months following a halving. However, this time, Bitcoin had already surpassed its previous all-time high before the event.

Current Price

As of writing, Bitcoin is trading at $63,811, up 0.7% in the past 24 hours.