3 Certainties in Life: Death, Taxes, and Bitcoin Halving

Introduction:

There are certain things in life that are inevitable: death and taxes. As we grow up and enter adulthood, we inevitably become involved in the world of taxes. Wherever you go, you're likely to encounter various forms of taxation, such as income tax, property tax, and goods and services tax. The list seems endless, and it wouldn't be surprising if someday we were asked to pay taxes even on something as basic as oxygen.( remember Carbon tax? ) Creativity have no limits when it comes to inventing new idea to collect taxes.

Similarly, throughout history, not short of individuals have tirelessly sought ways to evade death. While medical advancements have extended our lifespans, no one has yet found a way to cheat death entirely. Regardless of wealth or power, death remains the one universal certainty that affects us all.

And just like taxes and death, the event of Bitcoin halving occurs every four years, reducing the rate of new Bitcoin creation and shaping its scarcity over time.

What is bitcoin halving:

Bitcoin halving, occurring approximately every four years, comes with a reduction in the reward given to miners who provide the network's computation power and uphold security. This process follows a predetermined schedule dictated by the Difficulty Adjustment algorithm. Regardless of the number of mining rigs in operation, the algorithm maintains a stable average block interval of around 10 minutes. Every 210,000 blocks, there's a programmed decrease in the issuance rate(inflation), halving the number of new Bitcoins created. The recent fourth halving cut the reward from 6.25 to 3.125 Bitcoins per block, with approximately 450 Bitcoins mined daily. With 93.75% of Bitcoin already issued, only 1.3 million coins remain to be mined, ensuring a total supply of 21 million.

Here's the halving schedule and reward reduction plan, recurring every four years, until 2140.

Implications:

Bitcoin's scarcity is harded into the protocol and destined to halving the newly mining reward, resulting in an inflation rate below 1.3%, lower than gold's approximate 2%. This milestone, marking Bitcoin's issuance rate dropping below gold's for the first time, solidifies its position as the scarcer asset. Governed by the laws of mathematics and backed by energy, Bitcoin stands as the hardest non-debt money in the world. As mass adoption continues, Bitcoin is poised to evolve into an even more resilient monetary network over time.

Conclusion:

With its recent fourth halving, Bitcoin's inflation rate falling below 1%, and its scarcity exceed to gold's 2.3%, Bitcoin has officially become the scarcest form of (non-debt)money in the world. Governed by law of mathematical and backed by real physical energy.

*Assume that the demand of bitcoin is ever increasing, and supply is kept.

So, Where would you choose to save your hard-earned money?