The Countdown to Halving
With less than 2 days remaining before the critical halving event, where the daily Bitcoin supply will decrease from 900 to 450, miners are engaging in fierce competition to mine the first block after the halving. Experts anticipate that the first “satoshi” obtained from the initial post-halving block could fetch millions of dollars.
The Evolution of Bitcoin Halving
The upcoming fourth halving, which reduces miner rewards per block from 50 to 25 BTC, is a far cry from the Bitcoin landscape of 2008 or 2012. With the value of a single Bitcoin surpassing $60,000, investors and miners alike are now in pursuit of the smallest unit of Bitcoin, a satoshi, equivalent to one hundred millionth of a Bitcoin. The competition focuses on chasing the satoshi obtained from the first post-halving block. The company successfully mines the block and wins the competition. But why this fervent competition for a satoshi?
The Value of the First Satoshi
Last year, the Ordinals protocol surfaced on the Bitcoin network, garnering significant investor interest. This protocol, also known as Bitcoin NFTs, involves carving data onto these satoshis, known as “inscriptions,” giving them NFT value. However, the saturation of data on these satoshis has propelled them to a distinct value.
Casey Rodarmor, the creator of Ordinals and the recent Runes protocol, categorized these satoshis based on their value:
- Common: Not the first satoshi of a block
- Uncommon: The first satoshi obtained from each block
- Rare: The first satoshi obtained from the first block after every difficulty adjustment
- Epic: The first satoshi obtained from the first block after every halving
- Legendary: The first satoshi of each cycle
- Mythical: The first satoshi was obtained from the Genesis block of the first Bitcoin…
Achieving the “Mythical” satoshi, linked to the Genesis block and believed to be mined by Bitcoin’s creator, Satoshi Nakamoto presents an exceedingly formidable challenge. Therefore, many believe that this Bitcoin remains untouched in his wallet.
The Rarity and Value of Satoshis
These categorized satoshis hold significant value. Recently, auction house Sotheby’s sold one of these satoshis for $160,000. So, yes, a satoshi, or one hundred millionth of a Bitcoin, was sold for 2.71 BTC.
Valuation of Epic Satoshi
In the grouping, some speculate that the “epic satoshi,” which refers to the first satoshi obtained from the block mined immediately after halving, holds a value in the millions of dollars. Some argue that its value is $1 million, while others assert that it should be valued at $50 million.
Potential Extra Income for Miners
A manager from Marathon Digital, one of the largest mining firms in the U.S., likened the epic satoshi to a lottery ticket. There are even claims that numerous crypto investors have offered millions of dollars in advance payment to the Ordinals development company and teams to secure the first mined satoshi post-halving. Although miner rewards may halve, the “winning ticket” miner could potentially earn significantly more than anticipated.
Anticipated Interest in Assets on the Bitcoin Blockchain
People expect that the anticipated interest in assets like Runes and BRC-20 on the Bitcoin blockchain will additionally draw attention. Furthermore, the transaction fees generated from these assets will contribute to the additional income lining the pockets of miners.
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