[2018-12-31] Bitcoin Halving in 2020: 3 Things you need to know

[aalfadhala]

When Satoshi Nakamoto – whoever he or she is – set up bitcoin in 2009, he did so with the aim that the digital currency would be better in practically every way than the fiat currencies that came before it. Not only would the currency protect holders against theft by private citizens, but it was also hoped that it would eliminate the current monetary policy that slowly inflates the government money, decreasing its value in real terms.

The way Nakamoto envisioned doing this was simple: over time the difficulty of mining new coins would go up, slowly converging on a level so high that no further coins could be minted. Nakamoto hard-coded the bitcoin system to limit the total number of bitcoin that could exist through a series of halving events, with the two most recent in 2012 and 2016. These halving events reduced block rewards every time a miner added a block to the bitcoin blockchain.

Read more: https://coinlu.com/bitcoin-halving-2020-3-things-you-need-to-know/

[gentlemand]

"then the next bitcoin halving should remain profitable for miners. But price increases don’t materialize, or if a steady price trend does not emerge, then they may no longer want to operate."

No one should be attempting crypto journalism without awareness of straightforward factoids. Mining difficulty adjustments make sure mining is always profitable for someone somewhere.

[Coffee135]

This economy works only in a closed system of cryptocurrencies. When this system has allowed the Fiat all went according to rules. Owners of a large number of Fiat received the opportunity to buy large quantities of coins and this gives them the opportunity for manipulation. Perhaps in the future mining will be profitable only for the owners of hydroelectric power plants.

[Betwrong]

The way Nakamoto envisioned doing this was simple: over time the difficulty of mining new coins would go up ...

The size of the block reward has nothing to do with the mining difficulty. Putting it simple, it could be easier for miners to mine coins after the halving than before it if the number of miners decreased more than 2 times, because difficulty depends on the number of miners in the network, and is set (every 2016 blocks) so that it should take around 10 minutes to find a new block.

[rodskee]

This economy works only in a closed system of cryptocurrencies. When this system has allowed the Fiat all went according to rules. Owners of a large number of Fiat received the opportunity to buy large quantities of coins and this gives them the opportunity for manipulation. Perhaps in the future mining will be profitable only for the owners of hydroelectric power plants.

Money is powerfull use to got all we want in life
The rich people they have opportunity to take these advance use their fiat money
He/She can build own hydroelectric power plant for the mining rig

[yesyes18]

We're hoping for a bottoming this year and then the halving that will occur nect year could shoit the price up in a way. Satoshi made this awesomely clever invention that Bitcoin can forever gain an increase in value asbthe rewards reduce and thwn new coins minting stops. This is an incredible invention in our time. Let's see what the future holds for us.