What is Bitcoin Halving and how is it calculated (Bitcoin Halving Mechanism)
What is Bitcoin Halving and how is it calculated? What is the value transfer, mi
What is Bitcoin Halving and how is it calculated? What is the value transfer, mining, and trading of blockchain?
From the above figure, it can be seen that there are already over 30 million blocks in the entire network packaged into a new digital currency (note: this new currency is called BCH using the old code). Therefore, when the first Bitcoin production reduction occurred on November 17, 2017, a major market occurred—on May 25, 2009, the day before the birth of Bitcoin, a total of about 1 billion BCH appeared on the entire network; afterwards, it took about 12 months to undergo the second difficulty adjustment, and then completed the third difficulty upgrade within 13 days. Then in February of this year, the price of Bitcoin once again reached its historical high of $14,000, and then quickly fell to around $13,000. However, this halving did not bring about any impact. According to official data statistics, the expected BTC production this time will continue to rise. (The above analysis is limited to technical exchanges)
Bitcoin Halving Mechanism
Editor’s note: This article is from Colourful Cloud Blockchain (ID: cybtc_com), authorized to be reprinted by Odaily Star Daily.
Bitcoin halving is an important catalyst for the price of Bitcoin. With the passage of time, the price of Bitcoin will undergo significant changes because its supply is reduced by more than half. This means that in the next year, BTC will experience a huge reduction in production-approximately once every four years.
In order to keep Bitcoin stable and healthy, miners must provide more energy for their block rewards to pay for transaction fees. Therefore, miners need to consider their mining income as well as their demand for computing power on the network. According to the current market conditions, these returns should be regarded as “variable returns”.
So what is the third halving of Bitcoin? Bitcoin was originally a decentralized electronic cash system that allowed users to make peer-to-peer currency transfers in an untrusted manner without the involvement of third parties.
However, the current situation is different: theoretically, the system’s operators hope to adjust the number of their tokens by using specific algorithms. In other words, “we can replace the original currency with a new digital form.” Although there is some controversy, the Bitcoin community believes that this approach is crucial to achieving this goal. “When you put your money in the bank…how do you choose to handle your funds?”
If people want to obtain more encrypted assets, they need to create a new investment tool. However, Bitcoin has proven itself to have the potential to become a global safe-haven investment. In fact, in some respects, this is a stunning opportunity. Bitcoin as a means of value storage is continuously evolving and widely adopted, which may lead to a significant increase in Bitcoin’s inflation rate. Since Bitcoin does not have the risk resistance ability like gold and does not rely on traditional financial institutions, it has also become one of the preferred investment targets for investors.
Although Bitcoin itself is not a very good way to store value, I firmly believe that it can solve many problems:
1. Economic liberalism; 2. Market sovereignty, privacy, and anonymity.
3. Technological innovation: reducing the entry barriers for developers to enter the market, making it easier for them to understand the essence of blockchain technology.
4. “Scarcity and security” refers to whether the things done by those who have a large amount of resources are good enough to meet people’s requirements, and they cannot be used for illegal purposes, including money laundering, terrorist financing, and other criminal activities.
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