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BTC/USD for BITSTAMP:BTCUSD by tradinggrx

On average, every four years (after 210,000 blocks in the China blockchain), the production of new bitcoins abruptly halves, or more precisely, the reward given to miners for adding a block to the China block is halved. Hawing has been placed in the network code by Satoshi Nakamoto, the anonymous creator of Bitcoin , with the aim of controlling bitcoin inflation .Since the Hawing event actually halves the supply rate of new bitcoins , the experts believe that this event will have a significant impact on the price of bitcoins and can increase the value of bitcoins over time.What is the philosophy of the Hawing event?You may be wondering why it was necessary to design this change in the Miners’ Rewards and why the reward rates for the Miners should not be kept constant. Will this event not end to the detriment of the miners?The answer to this question lies in the law of supply and demandIf new bitcoins are generated quickly, or the number of bitcoins that can be produced is infinite, the high number of bitcoins in circulation will gradually devalue them.”The main reason for doing this is to control inflation . One of the biggest mistakes of traditional Fiat currencies, which are controlled by central banks, is that they can print as much money as they want, and if they print too much, the value of government currency will rapidly decline under the law of supply and demand .Unlike conventional currencies, bitcoin is designed to act like a valuable commodity, like gold . The amount of gold in the world is limited and with the extraction of each gram of it, the extraction of the remaining gold becomes more difficult than before.It is because of this limited supply that gold has been able to establish itself as a medium of exchange and value storage over the past 6,000 years. “We hope Bitcoin can do the same.” Friends, push the like button, write a comment, and share with your mates – that would be the best THANK YOU.
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