🖨️ [Halving] What do you need to know?

Good Morning,

The most epic event in the Bitcoin and Crypto world is just 8 days away. 

Yes, you got it, it's the Halving we're talking about.

Today, you're gonna find out why it's the most significant Halving in the whole history of Bitcoin.

Also,

In 3 days, I'll be launching 'Go Brrr Pro', a premium membership dedicated to those who whats to succeed in this bull market and at the same time support this newsletter.

Stay Up-to-Date

Save time on research:

💰Bitcoin

• Sadly, 'the blockchain' seems to be THE most efficient vehicle ever for tokenising and selling absolute bullsh!t to unwitting investors. (link)
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• Bitcoin Halving explained (video)
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• Many people don't realise how much peer reviewed scientific literature came out in the last 18 months endorsing Bitcoin mining's net-positive environmental potential. Here's 5 of the most recent publications with (link)

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• BREAKING: 🇭🇰Hong Kong to approve #Bitcoin EFTs next week - Reuters. (link)

🚀 Altcoins

• Web3 wallet MetaMask, developed by ConsenSys Software Inc., has partnered with onchain project Daylight to allow users to verify their eligibility for airdrops directly from their platform. (link)

• Coinbase Cloud, Google Cloud, and a bunch of other companies have jumped on board with EigenLayer as operators since its mainnet launched. Google Cloud already manages nodes and validator operations for various blockchains like Ethereum, Solana, and Aptos. (link)
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📈 Trading

• While everyone expects range low retest or breakdown, it's very likely we will slowly Pump and then Pump harder post Halving. -(link)

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• “Outside of the majors I hold a bunch of positions in AI and Gaming. Coins like $Gala look really good IMO attempting to break out of major consolidation areas.”  (link)

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• “I'm just going to say this out loud. A lot of you need to man the fuck up and start holding positions longer than 30 minutes. Shitcoin hunting is a numbers game. The majority will go to zero but a few will pay for all of those losses and generate a ton of income if timed properly” (link)
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• $ENA - (link)
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Educational

Why is this Halving the most significant in the entire history of Bitcoin?

To understand why, it’s essential first to understand the concept of scarcity.

I have written an article on this subject here.

You can measure scarcity with an indicator know as “Stock-to-flow ratio”.

We can use this indicator to see how scarce a commodity is and how hard is to get more of it.

Think about a basket of apples compared with one of diamonds.

If you want to see apples and diamonds stock to flow ratio you need 2 things:

• Total number of apples (stock) and how many apples can be produce in 1 year (flow)

• Total number of diamonds (stock) and how many diamonds can be produce in 1 year (flow)

Let’s say that we have 20 apples and 20 diamonds.

Every year we can produce 20 apples, but only 1 diamond.

We can calculate the stock to flow ration in this way:

For diamonds:

We ca see that, the stock to flow ratio for apples is 1, witch is smaller than stock to flow ratio for diamonds.

This indicates that diamonds are scarcer than apples because, again, the SF ratio for diamonds is greater than the SF for apples.

In essence, this indicator suggest that only 1 year is required to produce the entire supply of apple.

Conversely, manufacturing the entire quantity of diamonds in the basket would require a span of 20 years.

If apples were be a form of money, people would have an incentive to produce more of it.

This could flood the market with apples and devalue them.

As a result, individuals who save or use this form of money will lose purchasing power.

In this case apples are a form of weak currency. 

If we have to choose between apples and diamonds as a form of money, diamonds, with a Stock-to-flow ratio 20 times greater than apples, are 20 times harder to produce.

This makes them a considerably better form of money.

Let’s see what is the stock-to-flow for different commodities and currencies.

Check the below image 👇

With the exception of Bitcoin, we can observe that gold surpasses other form of money and commodities in terms of stock-to-flow.

This is the result of thousands of years of experiments to determine the best form of money.

Gold, having the greater stock-to-flow ratio, has won the battle of currencies and secured the title of the greatest form of money.

Stock-to-flow ratio in Bitcoin Case

In just 8 days, Bitcoin’s inflation will be halved:

Right now, bitcoin inflation flow is:

6,25 BTC / every 10 minutes

37,5 BTC / every hour

900 BTC / every day

328.500 BTC / every year.

After 8 days, everything will be cut in half:

3,125 BTC / every 10 minutes

18,75 BTC / every hour,

450 BTC / every day

164,250 / every year

At the halving moment supply of bitcoin will be approximately 19,685,800 BTC.

It’s halved inflation (flux) 164.250 BTC / year.

Stock-to-flow ratio wil be:

19,685,800 BTC / 164,250 BTC = 119,85 stock-to-flow

This means that it would take a span of 120 years to produce the current supply of bitcoin in circulation.

The current stock-to-flow for bitcoin is 60.

This means that it would take a span of 60 years to produce the current supply of gold in circulation.

This event will mark the moment in Bitcoin’s history when its stock-to-flow ratio surpasses that of gold.

Bitcoin will be twice as hard to produce and will become scarcer than gold.

Additionally, we have to consider that there will be an absolute limit of 21 million bitcoin in circulation, and every 4 years the flow will continue to be halved.

All this suggests that Bitcoin’s stock-to-flow ratio will approach the infinity.

Soon, bitcoin will become the first asset with absolute scarcity.

Now, go and make your own research,

Mr GoBrr

Meme Of the Day

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.