Gold: you can hold bullion or digital gold

With there being a limited supply of only 21million Bitcoins, the cryptocurrency has been touted by some as ‘digital gold’. As time goes on it will become increasingly harder to mine a Bitcoin because, once 210,000 Bitcoins have been mined (in approximately four years), the Bitcoin miners’ earnings on each block reduces in half. The next Bitcoin halving, which will be the fourth time this has happened, is due in April 2024 after which miners will receive 3.125 Bitcoins as opposed to the 6.26 Bitcoins that are currently issued every 10 minutes. Based on the previous three occasions Bitcoin rewards have been halved, the price of Bitcoin could well rise between now and thereafter.

Bitcoin halving track record

Source: The rational root

The chart above plots the progress of the current Bitcoin halving cycle and price of Bitcoin compared to the historical trends, and suggests that Bitcoin (as of 20^th March 2023 is 72% into the current and fourth halving cycle. Given what has happened in the pa…