Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Bitcoin Forum => Bitcoin News & Updates => Topic started by: Peter90 on March 11, 2024, 10:20:33 AM
-
Understanding the Bitcoin Halving
Bitcoin operates on a deflationary model, where the reward for mining new blocks is halved every 210,000 blocks, or approximately every four years, a process known as the "halving." This event is significant because it reduces the rate at which new bitcoin are generated, thereby limiting supply. Bitcoin is the only asset in human history to have a fixed supply that never increases, making it the hardest currency ever known.
This aspect of the protocol cannot be changed due to the decentralized distribution of nodes. For the supply limit of Bitcoin to be increased, the majority of nodes would have to agree to such a change. While this might be possibly in theory, it’s hard to imagine a scenario where it becomes reality. Thousands of independent node operators around the world would have to agree to making themselves poorer and reducing the value of Bitcoin as a whole.
(https://cms.zerohedge.com/s3/files/inline-images/bitcoin-halving_id_b392d161-185d.jpg?itok=zEwdjztr) (https://cms.zerohedge.com/s3/files/inline-images/bitcoin-halving%203_id_44ff26d0-98.jpg?itok=loLBzpen)
zerohedge.com (https://cms.zerohedge.com/s3/files/inline-images/bitcoin-halving%203_id_44ff26d0-98.jpg?itok=loLBzpen)
-
This information is not bad for those who do not know what halving is, to get an idea in a short time. Although I don't know if I would call it the most important event, I don't think so. Satoshi's start-up, the first transaction between Satoshi and Hal and Lazslo's famous pizza purchase come to mind. Halvings are important in terms of supply reduction but by the fifth one 98.44% of bitcoins will have been mined. I don't think that successive halvings will have a big influence on the price.
-
This information is not bad for those who do not know what halving is, to get an idea in a short time. Although I don't know if I would call it the most important event, I don't think so. Satoshi's start-up, the first transaction between Satoshi and Hal and Lazslo's famous pizza purchase come to mind. Halvings are important in terms of supply reduction but by the fifth one 98.44% of bitcoins will have been mined. I don't think that successive halvings will have a big influence on the price.
I did not know there were transactions being made between Satoshi and Hal even before Lazslo's event, as never heard about itt before even on BTT. Can you provide proof of that transaction, please. And talking about the big influence on the price of BTC. I don't agree with it because IMHO successive halving have big impact on the price of BTC. And that's what keep motivating new investors to become miners.
As the reward will be cut by half but when the rate of BTC due to scarcity will increase the amount of that halved BTC as in block reward might become equals to what they are getting before, or maybe they would get more.
-
As the reward will be cut by half but when the rate of BTC due to scarcity will increase the amount of that halved BTC as in block reward might become equals to what they are getting before, or maybe they would get more.
Well said Faisal!
Halvings and Miner Revenue
(https://cms.zerohedge.com/s3/files/inline-images/BC_VC_Hive_-Longform-02-Bitcoin%20%282%29.jpg?itok=kl89moQw)
"And if you look at historical miner revenue in bitcoin, you can see quite clearly, the steep drop in revenue after each halving. But what’s interesting, is that if you compare that against the miner revenue in USD, there is a drop there as well, but it recovers soon thereafter as the cryptocurrency appreciates. In other words, a miner may receive less bitcoin, but that bitcoin is worth more."
zerohedge.com (https://www.zerohedge.com/crypto/4th-bitcoin-halving-explained)