What Comes After the 2024 Halving

Come 2028, Bitcoin will hit its fifth halving. Block rewards will shrink from 3.125 BTC down to just 1.5625. That shift nudges annual inflation toward 0.4%. Such a number dips under gold’s long-term erosion. Not many old-school assets match that pace.

Why some Bitcoin miners run at a loss

Few realize this, but miners keep pushing even when losing money because they bet on tomorrow’s pay fixing today’s shortfall. What drives hash rate forecasts isn’t just tech - it hinges on how much Bitcoin could be worth down the road. If prices soar, earnings might stay viable despite shrinking block rewards. 

One thing people often miss is how secure Bitcoin will really stay over time. When rewards drop after each halving, miners might earn less, so fewer machines support the network - opening doors to threats. According to Justin Bons from Cyber Capital, keeping today’s safety standards means either Bitcoin’s value has to double every four years or the network must maintain consistently high transaction fees. One possible fix could involve setting a baseline fee for transactions across the system in the future.

The longstanding debate about Bitcoin's primary use case - store of value versus medium of exchange - may find resolution. Each part of the system might handle a separate task. The base layer, with its limited throughput but exceptional security, functions as a settlement layer and store of value. Additional layers built atop this foundation can provide the speed and scalability needed for everyday transactions.

Underneath everything, Bitcoin could become a kind of base layer in global finance. Taking the place of state-issued currency? Probably not. Instead, because it only exists in fixed amounts, acting as a neutral reserve beyond national lines feels more realistic. 

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Dumb trades are only of any use if they bring you any lessons or any sort of behavioral modification at all. "Dumbness" (as we generalize many missteps in our financial journey).