Bitcoin’s Edge Is Its Fixed Supply And Scheduled Halving

Bitcoin’s Edge Is Its Fixed Supply And Scheduled Halving
фото показано с : ethereumworldnews.com

2019-6-26 12:45

Bitcoin and gold share many similarities. To get gold, miners have to get to the mines. Bitcoin, too cannot be created arbitrarily. It has to be mined by digital means, and its supply is limited and finite. Of the 21 million made, 80 percent of them have already been mined with the precedence set by the digital asset’s creator Satoshi Nakamoto.

The capped supply was Satoshi’s way of battling inflation. While fiat currencies are inflationary, Bitcoin is not. Satoshi, consequently, set an algorithmic scale with set dates known as Halving to curb inflation as the token is distributed.

Of the process, Satoshi said that:

 “The fact that new coins are produced means the money supply increases by a planned amount, but this does not necessarily result in inflation. If the supply of money increases at the same rate that the number of people using it increases, prices remain stable. If it does not increase as fast as demand, there will be deflation, and early holders of money will see its value increase. Coins have to get initially distributed somehow, and a constant rate seems like the best formula”.

The 2020 Bitcoin Halving Event

The 2020 BTC Halving event will further cut the token’s mining reward by 50 percent. These events happen after the mining of  210,000 blocks, which takes roughly four years. The Bitcoin miner will from the day of the upcoming Halving event earn 6.25 BTC per blocked mined rather than the current 12.5 BTC per mined block. 

The last event of this nature occurred on July 9, 2016, and there have so far been two halvings with the very first occurring on November 28, 2012. Ahead of next year, investors and traders expect BTC’s supply shock to jerk prices higher.

Bitcoin’s market base has evolved, and there are more institutional players in it than has ever been. However, as per past data, the coin hit a $1,000 value 12 months after the first event. The 2016 event is also viewed as a precursor to the 2017 Bull Run and BTC’s eventual $20,000 value.

Financial experts say that the following BTC Halving effect is already anticipated so it might have a negligible impact on the coin’s value. The market will instead begin to anticipate the reduction in supply and adjust accordingly, therefore inhibiting sharp value dips and spikes. A fact they seem to agree on however is that the Bitcoin price always rises after its halvening. As per Satoshi’s design, the last Bitcoin will be mined in 2140.

Scarcity as Bitcoin’s Edge

Gold and Bitcoin are different from any other consumable commodities because of their rarity. According to Bitcoin quant, PlanB, this scarcity can be expressed in terms of their stock-to-flow (SF) ratio. Both Gold and Bitcoin have a high SF.

Gold’s high stock-to-flow ratio, for instance, gives it the lowest price elasticity of all commodities. It is estimated that by 2022, the SF ratio of BTC could overtake that of gold as the token’s supply diminishes. While gold has an SF of 62, Bitcoin’s stands at 25. However, with only 3.5 million BTC left in the mines, the SF of Bitcoin will hit 50 by 2022 and get its market cap to the $1 trillion mark. Therefore, Bitcoin could then be worth over $55,000 with funds for the high market cap flowing in from gold, silver, billionaires, and institutional investors.

Bitcoin maximalists, nevertheless, point out that gold is not as scarce as Bitcoin. Bitcoin can only be created by an extremely energy intensive process where complex mathematical equations are solved. The reward received is halved over time, slowing down the creation of more BTC.

In contrast, the  National Ocean Service claims that the oceans hold over 20 million pounds of gold. Granted, no one knows how to mine it affordably, yet. There is also a growing interest in asteroid mining, with steroid Psyche 16, for instance, holding over $700 quintillion worth of gold, nickel, and iron.

The post Bitcoin’s Edge Is Its Fixed Supply And Scheduled Halving appeared first on Ethereum World News.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

EdgeCoin (EDGE) на Currencies.ru

$ 1.0077 (+0.07%)
Объем 24H $0
Изменеия 24h: 0.68 %, 7d: 0.00 %
Cегодня L: $1.0077 - H: $1.0077
Капитализация $0 Rank 4906
Доступно / Всего 0 EDGE / 10b EDGE

bitcoin scheduled halving supply fixed edge 2020

bitcoin scheduled → Результатов: 126


Coinbase Sides With Bitcoin Cash (BCH) Miners on 51% Attack Smack

By CCN: Coinbase researchers have released their own investigative findings into the recent Bitcoin Cash 51% attack controversy, and their conclusions might upset many Bitcoin maximalists. When Bitcoin Cash came under attack during a scheduled hardfork in mid-May, a group of miners colluded to reverse the attacked blocks and return misappropriated funds to their rightful owners.

2019-5-31 17:20


Bitcoin Cash [BCH] is ‘unsecure’ and the recent BCH chain reorg is a ‘sh*t show’, says Blockstream CSO

Bitcoin Cash, the fourth largest cryptocurrency in the world, has had more than a few hiccups this month. The scheduled upgrade for BCH didn’t quite go as planned, the SegWit BCH funds were stolen, two mining pools had to reorg to blocks to return the stolen funds, and other developments marred the otherwise peaceful bullish […] The post Bitcoin Cash [BCH] is ‘unsecure’ and the recent BCH chain reorg is a ‘sh*t show’, says Blockstream CSO appeared first on AMBCrypto.

2019-5-26 16:00


Bitcoin Cash exploit cripples network during scheduled hardfork upgrade

A bug was reportedly exploited on Bitcoin Cash during a scheduled hardfork upgrade of the protocol. For an hour and a half transactions went unprocessed, causing fees to skyrocket. A source familiar with the project says the exploit “looks like a timed attack,” while other rumors are circulating that the “attacker” placed a 180,000 BCH short […] The post Bitcoin Cash exploit cripples network during scheduled hardfork upgrade appeared first on CryptoSlate.

2019-5-16 21:43


Фото:

Джозеф Любин и Джимми Сонг поспорили о будущем Ethereum. Ставки выше $500 тысяч

Сооснователь Ethereum Джозеф Любин и разработчик Bitcoin Core Джимми Сонг заключили пари на будущее децентрализованных приложений. Произошло это на конференции Consensus 2019. What happened to THE bet? At #consensus2018, @jimmysong and @ethereumJoseph made a wager about the future of $ETH, today they’re scheduled to hash out the terms… Will they show??@BradyDale is ready for our […]

2019-5-15 12:43


TEAMZ Blockchain Summit Tokyo: 2019 Bitcoin And Cryptocurrency Conference

About TEAMZ Blockchain Summit Tokyo 2019 TEAMZ blockchain summit is a two-day conference scheduled to take place on April 6 – 7, 2019 in Otemachi 1st Square WEST 2F, Otemachi1-5-1, Chiyoda, Tokyo. The summit will bring together some of the world’s leading investors, stakeholders, investment banks, regulators, large institutions, media platforms and entrepreneurs in the blockchain […]

2019-3-7 12:47


TRX Price Doubled Since November, TRON’s Odyssey 3.5 Hard Fork Today

TRX price has doubled since November 2017, marking a 4-month period of significant growth for Tron’s cryptocurrency. Odyssey 3. 5 – TRON’s hard fork is also scheduled for today. TRX Price on a Positive Road TRX price has been marking steady gains for the last four months which led to an overall increase of around 100 […] TRX Price Doubled Since November, TRON’s Odyssey 3.

2019-2-28 16:23


Фото:

Korean Cryptocurrency Market Hinges on US Bitcoin ETF Decision

According to the Korea Herald, the U. S. Bitcoin ETF decision will shape the mood of the cryptocurrency market in the country. The All-Important Bitcoin ETF Decision It isn’t only the likes of SolidX, VanEck, and the flurry of other Bitcoin ETF proposals that are waiting in anticipation for April 5, the date scheduled for the SEC to reach a decision on whether to allow them or not.

2019-2-21 18:00