Bitcoin Halving Coincides With US Presidential Elections — Is It a Mere Coincidence?
Block halvings, which occur every four years, constitute an important component of Bitcoin‘s code. Evoinery four years miners’ rewards are cut in half, reducing the number of new Bitcoins entering circulation. Plan B, an established crypto analyst, recently noted that Bitcoin’s halving coincides with the presidential elections in the United States. Is this the crux of Satoshi’s brilliance or simply a coincidence?
Bitcoin havlings happen at the same time as the US presidential elections
The Bitcoin protocol was designed such that it undergoes halving every four years (or every 210,000 blocks). This event has already occurred twice before in Bitcoin’s history. The first halving occurred in November 2012, the second one — in July 2016. The third halving is expected around May 14, 2020.
Block rewards for miners on the Bitcoin network started at 50 BTC per block back in 2009. After the 2012 halving, they decreased to 25 BTC for each block mined. In 2016, the reward was cut to 12.5 BTC. In less than 40 days, this number will be slashed to 6.25 BTC.
The mysterious Bitcoin inventor, Satoshi Nakamoto, programmed Bitcoin’s block rewards to reduce over time. This design makes the top cryptocurrency unique when we compare it to the traditional financial systems where the money supply is controlled mostly by irresponsible central banks. Contrary to Bitcoin’s halving, the supply of fiat currencies (read: USD) has grown exponentially over the years.
Notably, Bitcoin’s halvings (in 2012, 2016 and now 2020) all occur the same year when the United States elects a new president.
Is it a major coincidence or Satoshi’s plan?
A good number of crypto community commented on the interesting fact in Twitter. Some supposed that Satoshi intended for the bullish trend associated with the BTC halving to fall on leap years.
Others opined that it may happen because financial crises almost always occur during an election year, for example, the 2008 financial crisis. PlanB seconded this opinion, adding that there is a lot of volatility during an election year when the weak hands are shaken out.
The fact is that we will never know if this was indeed part of Satoshi’s grand design. Satoshi Nakamoto, who may have been one person or a group of people, disappeared soon after releasing the Bitcoin protocol in 2019.
This way, he is not around to explain whether he really designed Bitcoin’s halving to happen the same year as US presidential elections, or if it is a mere coincidence.
What is more important, though, is the fact that the halving event is historically bullish for the Bitcoin price.