So it is not surprising that Thomale waited with great excitement for the new Bitcoin Halving. On his own blog on blockchain technology and crypto-currencies on April 25, he explained the essence and the chances of the Bitcoin Halving. He is particularly interested in the development of the Bitcoin price as a result of the halving. At this event, the miners' reward for the mined Bitcoin blocks will be halved, thus reducing the incentive to produce. As a result, the supply of new Bitcoins is noticeably reduced. This artificial scarcity causes the value to rise significantly. It would also be the same if all gold mines worldwide produced only half the gold overnight.
Michael Thomale explains it like this: „To maintain the Bitcoin Blockchain's decentralized network and to confirm transactions, you need the miners that provide computing power to the network. To make the electricity costs and hardware acquisition costs worthwhile for them, they are rewarded for their performance in the form of Bitcoins. The maximum amount of Bitcoins available was set at 21 million during development. In the beginning, the miners were rewarded with 50 Bitcoins per completed block, which were distributed among the miners.“ To ensure that the maximum amount of Bitcoins is not reached for many years, Bitcoin inventor Satoshi Nakamoto introduced the so-called Bitcoin Halving. „This event takes place every 210,000 blocks, which is always roughly equivalent to a period of four years and results in the rewards per completed block being halved“, Thomale notes.
On the evening of 11 May, the third halving in the history of the crypto currency took place. Since then, a block chain data block can only generate half as many Bitcoins as before: instead of 12.5, it can now only generate 6.25. This is the number of Bitcoins that Miners can earn on average every ten minutes by providing computing power to the Bitcoin network. Since the Bitcoin launch of Bitcoin at the beginning of 2009, the block reward of originally 50 Bitcoins has now been halved for the third time. These recurring reductions are necessary because Bitcoin, unlike the national currencies, does not provide for inflation. The money supply cannot therefore be increased at will. Since no state guarantees the digital money either, it can only develop a value through an artificially created rarity. The Halvings, which take place every four years, ensure that the limit of 21 million units is not exceeded and that Bitcoin remains a scarce commodity.
Many Bitcoin fans and investors sat in front of their monitors in the evening hours of May 11 to wait for the first price development after the Miner performance was halved. Shortly after the halving, Bitcoin was quoted at 8,550 US dollars and remained at this level for the following hours. In the afternoon of May 12, Bitcoin was already slightly higher at 8,750 dollars. But this corresponds more to the natural fluctuation range of the crypto currency and is not yet the hoped-for price explosion due to the further shortage of Bitcoin. After the first two halvings in 2012 and 2016, the price of Bitcoin skyrocketed. In the following years, the price for a unit of the crypto currency climbed by several thousand percent. The price rally following the halving lasted an average of 446 days. It remains to be seen whether history will repeat itself in 2020.
Michael Thomale is convinced of this. In his blog he calculates: „One year after the Bitcoin Halving Event in 2012, the Bitcoin price has risen to over 1,000 US dollars for the first time as of November 2013, whereas before that it had been traded for under 100 dollars in some cases in the same year. At the end of 2017, the Bitcoin price even rose to the previous high of over 19,000 dollars, while at the beginning of the year it could still be bought for under 1,000 dollars. This enormous price rally has once again taken place one year after the last Bitcoin Halving in 2016.“ The conclusion of the Blockchain expert is: „One can therefore assume that by 2021 at the latest, there will be enormous price rallies again, just as there have always been after a Bitcoin Halving.“ So it is not surprising that many in the Bitcoin community expect a significant increase in the medium term.
Thomale has such a broad business base that it is not itself dependent on high Bitcoin profits. With Nexus Global, he is using a block-chain-based form of project and corporate financing: the Initial Coin Offering (ICO). More and more start-ups are using this innovative financing method in order to obtain investor funds quickly and independently of traditional capital providers. Capital is raised exclusively with the help of block chain technology, which simplifies many processes and streamlines structures. Within the framework of the ICO or Token Sale, investors acquire the tokens issued by companies via an online platform in exchange for crypto-currencies or conventional currencies. By selling tokens, investors can participate in a project and its products at an early stage without entering into a direct legal relationship with the company. In addition to the participation in the products, the token buyers have access to an at least theoretically liquid investment.
The German RS. Red Eagle AG from Dr. Reiner Stemme also relies on this modern form of capital procurement. With the help of Michael Thomale, the aircraft designer wants to secure start-up financing for the production of new types of aircraft. The RS. Red Eagle AG develops air surveillance systems for internal and external security, commercial use as well as environmental and research tasks. Under the project name „Red Eagle“, Stemme intends to launch a low-noise and fuel-efficient aircraft onto the market, which is primarily suitable for patrol flights. He is planning the RS 120 Guard aircraft type with the synthesis of manned and unmanned flight characteristics for one or two crew members. According to the Trebbin-based company, the RS 120 aircraft type is aimed „at police tasks, low- to medium-range border surveillance and a variety of similar tasks“.