Posts Tagged ‘halvening’

The ith Bitcoin Halvening

December 28, 2022 Leave a comment

I just got one of these stylish sweeties from an Etsy artisan shop.

So, you ask: “WTF does that Bitcoin nerd math mean?

Here’s BD00’s attempt at communicating the meaning of the sacred Bitcoin money-supply equation by mapping the basic math symbology into words:

So, you say: “This explanation doesn’t help at all. WTF is this ‘Halvening’ jargon?“, and you follow that up quickly with an astute, insightful, haymaker: “You think you’re smart, but you’re not… you’re an imposter.

One of the divine features of the Bitcoin protocol is that the production of bitcoins gets abruptly cut in half approximately every 4 years. Hence, the new word, “halvening“, was concocted to commemorate those joyous supply shocks for Bitcoin cultists like me (you’re one too, you just haven’t realized it yet).

“Halvening” can be used interchangeably with “halving”. BD00 prefers the former because it’s a new beast, has 3 syllables, and reminds him of those scary “ing” movies: The Conjuring, The Shining, The Thing, Jurassic Parking, Karate Kidding, Schindler’s Listing, Deadpooling, etc.

Here’s what we get when we plot out the most hallowed, disciplined, apolitical, incorruptible, deterministic, terse, honest, “money printing” policy of all time.

The Bitcoin network has dispassionately and automatically executed 3 halvenings since it was launched 13 years ago on January 3, 2009. Thus, the index “i” is currently set at 3 until the next halvening event occurs in 2024. It’s important to note that over 18M bitcoins, or 85% of the total supply, have already been mined to date. It’s important because hard core believers like me are steadfast HODLers (Hold On for Dear Life) that further restrict the availability of bitcoins for purchase over time in addition to the built-in protocol halvenings.

So, what’s so special about the Bitcoin money production schedule? The following composite graph, which led to an abnormally high number of views in a previous post, clearly shows the contrast between the Bitcoin mining schedule and the printing “schedules” of untrustworthy, central bank-printed, fiat paper.

The succession of relentless halvenings executed by the decentralized Bitcoin protocol software eventually drives inflation to zero. The money printer stops forever at 21M bitcoins printed. In fiat-denominated nations, all money units are printed from one source: the country’s “independent” (lol) central bank. In every known case in history, central banks eventually are pressured by their governments to keep inflating the money supply to keep the economy roaring. Keeping inflation low takes a back seat to gorging their donors with free money. Bitcoin don’t give a fuck about donors or governments or central banks. Bitcoin don’t care if you or I use it. Bitcoin just is.

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