We are Monday, the first day of a new terrific week. Today is a very special day. Like the Football World Cup or the Olympic games, the BITCOIN halving happen every 4 years!
Hopefully the COVID-19 will not be able to delay this event and each of us will be able to follow it from anywhere in the World without the need of any (expensive) ticket. You may ask me “Hey Man, we heard about this Halving for months now, what else can you teach us today?”.
First, I write it on the day it happen so you see live with this information in mind, what is really happening.
Second, you might know already one or even the three reasons but let me present them with an other angle.
Third, FEATHERCOIN applies also the halving mechanism and therefore I will provide you additional information on it.
A last tip, do you know that Baroque Classic Music helps the brain reducing is frequency and increase the focus? Have a try, it will provide you another reading experience. (Take 2 minutes on Youtube and play it on the background; I wait you here!)
If you started the music, you can start the article from the beginning. You don’t like it, just stop it.
Now, here we go with the 3 reasons why the halving push the BITCOIN price higher.
- A PREDICTABLE event. People likes predictable events when everything follow the rules and the plan. Do you know the famous “Buy the Rumor, Sell the News”. Everyone is buying before the event is happening, everyone want to be sure to have BITCOIN before the event. When the event happen, we realize that nothing special happen and people sell it. Therefore the rise is made by the hype occurring before the event.
- A REDUCTION of the new supply. As of block 630,000. In 11 hours (at the time of writing) only 6.25 BITCOIN will be produce every 10 minutes opposed to 12.5 right now. In other words, over the last years:
- 12.5 BTC every 10 minutes = 1.25 per minute = 75 BTC per hour = 1,800 BTC per day.
- With a price of $8,600 is means a value creation of :
- $10,750 per minute
- $645,000 per hour
- $15,480,000 per day
- The mining of those blocks has a cost and therefore the company mining BITCOIN are selling the BITCOINS to get paid. So today, BITCOIN need $15,480,000 per day of fresh money to buy the new BITCOINS and maintain the price.
- After the halving, only 900 BTC per day will be produce for a value of $7,740,000. So if the same amount of money ($15,480,000) is available then the price of BITCOIN will raise because the demand will be high.
- An INCREASE in the production costs. As a consequence of the REDUCTION of created BITCOIN, the cost to produce one BITCOIN by the miners will increase. As a results, the miners could keep their mined BITCOIN for them until they find a higher sell price. This will mechanically reduce the number of fresh BITCOIN available on the market and once again it will tend to send the BITCOIN price higher.
Was it clear enough? If not, here a simple conclusion. The effect of the Predictable Event has passed already and helped BITCOIN to reach $10,000 again. The effect of the supply reduction and costs increase will manifest slowly over the next weeks, months but will affect POSITIVELY the BITCOIN price.
Where are we with FEATHERCOIN?
40 FTC every 1 minutes = 2,400 FTC per hour = 57,600 FTC per day. With a price of $0.0085 is means a value creation of:
- $0.34 per minute
- $20.40 per hour
- $489.6 per day
In other words, with $489.6 per day or $14,688 per month, you can buy all new Feathercoin being mined.
What an amazing gap for an equivalent technology! What a challenge to reduce this gap! But I believe in the strength of our community and the constant efforts to bring back Feathercoin in the TOP 100 (as a first step!).
The next halving of Feathercoin is expected to happen in July 2021. You therefore understand that the hype phase will start soon. So if you don’t want to miss this first phase, it is still time to fill in your bags.
Have a good HALVING DAY,