Why did Satoshi Nakamoto create Halving Bitcoin?

[vanminhcoin1_baned]

Today I am writing this article so that new people can understand more about Halving Bitcoin

As you know the third halving of Bitcoin has been completed but the debate about if and when the big event will affect the future price of the largest cryptocurrency has not ended

In contrast to traditional government-controlled and printed currencies, Satoshi set a fixed supply limit of 21 million coins. In addition, every four years, the BTC reward given to miners is cut in half, with the current halving from 12.5 coins per block to 6.25 coins.

The reward system, combined with Bitcoin's difficulty adjustment, automatically analyzes network activity and adjusts the amount of computing power needed to process transactions, ensuring miners can continue to earn. profits while BTC is becoming increasingly scarce.


“The fact that new coins are produced means that the money supply increases according to a plan, but this does not necessarily lead to inflation. If the money supply increases at the same rate that its users increase, the price will remain stable.

If it doesn't grow as quickly as demand, there will be deflation and early holders will see its value increase. From the beginning, the coins have to be distributed in some way and the constant ratio seems to be the best formula. ”

Bitcoin's supply schedule will slow down over the years and decades to come, ensuring an increasingly limited number of BTC flows to the market.

That new BTC creation rate will slow down to the point where it takes more than 100 years for BTC to finally be mined. That will probably happen around 2140.

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[DaCryptoRaccoon]

The block reward halving was put in place to ensure that max money is 21.000.000 coins and to ensure the last coins are not mined out until around the year 2140 long when we will all be dust in the universe.

Below is a table of all block halving heights and the corresponding reward at that time.

I believe that Satoshi introduced this into the code for a number of reasons but I think the main one is to ensure a steady flow of reward for miners over the duration of mining's life.

If we make it to the end of this table is debatable and also depends on the rate of technology change we see in the from of chip sizes in NM and power consumption.

Bitcoin was also designed as a deflationary currency the idea behind this is that over time, the number of bitcoins will decrease and thus become scarcer over time.

Code:

Block No. Reward (BTC)
---------  ------------
        0  50.00000000
  210,000  25.00000000
  420,000  12.50000000 
  630,000   6.25000000  <- we are here
  840,000   3.12500000
1,050,000   1.56250000
1,260,000   0.78125000
1,470,000   0.39062500
1,680,000   0.19531250
1,890,000   0.09765625
2,100,000   0.04882812
2,310,000   0.02441406
2,520,000   0.01220703
2,730,000   0.00610351
2,940,000   0.00305175
3,150,000   0.00152587
3,360,000   0.00076293
3,570,000   0.00038146
3,780,000   0.00019073
3,990,000   0.00009536
4,200,000   0.00004768
4,410,000   0.00002384
4,620,000   0.00001192
4,830,000   0.00000596
5,040,000   0.00000298
5,250,000   0.00000149
5,460,000   0.00000074
5,670,000   0.00000037
5,880,000   0.00000018
6,090,000   0.00000009
6,300,000   0.00000004
6,510,000   0.00000002
6,720,000   0.00000001

[casperBGD]

The block reward halving was put in place to ensure that max money is 21.000.000 coins and to ensure the last coins are not mined out until around the year 2140 long when we will all be dust in the universe.

yeah, it is a way to reach the 21 million limit, which is in line with Binary coding, so in each step it is halved to half of previous reward, and coin become scarcer and scarcer with time, which should lead to rise of Hashrate and BTC value
in four year (or after fourth halving) number of new mined BTC daily will be around 450 BTC, which should make it more scarce and valuable than today, even with same demand...