Bitcoin Halving and the Rise of the Inscription Ecosystem

Guest Author: DaosViews

At the end of April this year, Bitcoin is set to enter another halving period. After this halving, the reward for each Bitcoin block will change from 6.25 to 3.125 bitcoins. The halving is always a significant and symbolic event for the crypto ecosystem. Grayscale®, a major player in the crypto world, has recently published an article entitled 2024 Halving: This Time It’s Actually Different that addresses this pivotal upcoming halving event.

In its article, Grayscale analyzes the forthcoming halving from four perspectives: The potential impact of supply changes, the role of miners, ongoing on-chain activity and the impact of Bitcoin ETFs on the crypto market. Ultimately, all these perspectives converge on one fundamental question: How will it affect Bitcoin’s future price trend?

Regarding the potential impact of supply changes, the article mainly mentions that each halving further increases Bitcoin's scarcity. The concept of "scarcity" depends upon the perspective from which it’s viewed. For instance, new supply indeed decreases. However, if we consider circulating supply, as long as Bitcoin still rewards block mining its circulating supply is continuously increasing.