Halving: a sophisticated system
Halving is one of the most important programming attributes forged by the inventor of the digital currency. Halving – by 50 percent every four years – is precisely codified in the Bitcoin protocol.
The total number of Bitcoins to be mined is set at 21 million. Miners (prospectors) collect accumulating transactions in blocks and work them into the blockchain. After doing this, the miner receives a reward.
Whenever a miner succeeds in solving the mathematical problem posed by the Bitcoin network, he can attach a block to the blockchain. The miner then receives, among other things, a reward in the form of bitcoins.
And this is always after halving the last calculation. It also affects the other digital currencies.
Bitcoin halving: money creation in an intelligent way
Unlike banks, which sometimes generate uncontrolled money, the digital currency takes strict care to ensure that a healthy amount of money creation is maintained. This is to avoid inflation, which leads to price increases and devaluation.
Doing this to the the mining rewards can promote deflation. If it stops being lucrative for some miners, the Bitcoin network can cope. This is because the Bitcoin Protocol responds to the loss of prospectors by facilitating the work of the remainders.
Basically, it cannot lead to price losses, destabilization or even a crash. We think that it will lead to deflation and an appreciation and a strengthening of the currency. However, supply and demand also regulate the price. The date of the next halving is 08. 06. 2020.
More information can be found here: www.bitcoinblockhalf.com
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.