Bitcoin’s distribution is fixed and predictable; there’s a block mined once every ten minutes and inflation is adjusted once every four years in an event known as halving.
The block reward currently is 6.25 BTC. Since blocks are mined once every ten minutes, that’s 6 blocks an hour, and 144 blocks every day. That means 900 BTC are mined each day. The current price of BTC is $50,000. So why is this relevant? Because of this:
$45,000,000 worth of new BTC is hitting the open market every day.
Think back to May of last year just before the most recent halving. There were 1800 blocks being produced a day at an average BTC price of $7500, meaning $13,500,000 of new BTC was being produced daily. And if that would’ve remained the same after the halving, it would’ve been $6,750,000. That’s why anyone that understood this stuff knew immediately that was the last chance to ever buy BTC under 5 figures. Michael Sailor was all over it, and a maxi I knew literally sold his house under market value, moved into an trailer, and sold me his motorcycle on the cheap. He made the wise decisions, me not so much, although I’ve been dollar cost averaging in for many years.
So armed with this knowledge, you should understand immediately why halvings are so important, and why BTC fights an existentially tougher battle to maintain its price each time it moons to all time highs. You should also see why it’s so volatile at times, and why with enough time, that will go away too. There is no better investment than BTC longterm.
taken from another website
