The long lead up to the third Bitcoin mining reward halving has come to an end as the last block, block 629,999, which came with a 12,5 BTC reward, also came with a poignant message that tied back to why Bitcoin was created in the shadow of the 2008 crisis.
As the world stands today, a new financial crisis is brewing and there are similarities between today and 2008 with regard to government quantitative easing and monetary policies, but the message on the final block of the 12.5 reward stakes tied back to a recent article which showed how the Fed injected trillions of dollars.
The other side of the message stated how this plan by the Fed far outweighs what was done in 2008 and the implication being that 2008’s crisis was the reason for the creation of Bitcoin, and now with bigger monetary policies on the horizon, just how important the message of Bitcoin and its deflationary notions are.
The final block
F2pool, the miner responsible for the extraction of block 629,999, printed a New York Times headline into the Bitcoin blockchain just prior to the halving on May 11.
The message read: “NYTimes 09/Apr/2020 With $2.3T Injection, Fed’s Plan Far Exceeds 2008 Rescue”, this outlines the comparison between the two differnt financial crisis we have faced in a 12 year period, and just how much worse this upcoming impact of the Covid-19 situation could be.
Bitcoin becomes more important
So, if the 2008 crisis was the catalyst that created a new financial system to try and mitigate that ever happening again, then this new financial crisis is a time for Bitocin to come to the fore.
The question is, even in over 11 years, if Bitcoin has built up enough to be a viable financial alternative. The issue is that Bitcoin is not really a financial system as it was created to be, and part of that reason is because of the halving which is helping the asset become less inflationary than what many central banks hope for their currencies.
In fact, Bitcoin’s designation in terms of its supply and its economic points has made it even more like gold with the coin often getting compared as a digital gold. The scarcity and the lowered amount entering the circulating supply means that this coin will probably grow in value and be a hedge against the expected rush of inflation.