Bitcoin suspended trading in November
Bitcoin network generates a new block every ten minutes. Every time a miner completes a block, he can get a certain amount of bitcoin as a block reward, and the reward will be halved for every 210000 blocks mined. Because the time for mining each block is limited to 10 minutes, at this rate, the period for the reward to be halved is four years, that is to say, the reward for bitcoin blocks is halved every four years
when the bitcoin block reward was halved for the first time, its price rose 25 times from 300 yuan to 7995 yuan; In the second half, the price rose 28 times from 5011 yuan to 140000 yuan. So many people predict that the third halving of bitcoin in May 2020 will lead to a sharp rise in the price of bitcoin, at least 10 times. However, these figures are not so clear. After halving in 2012, bitcoin prices rose for two months, and in 2016, there was almost no immediate response to deflation for a month. This may also be the result of the strategy of "buying rumors and selling news" implemented by some speculators
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after bitcoin halved, the supply slowed down, and keeping deflation through algorithm has always been a part of bitcoin protocol design. It was set up to ensure the value of bitcoin. By recing block incentives and setting the maximum possible supply of bitcoin at 21 million bitcoins, bitcoin has an anti inflation feature, which runs counter to the tendency of central banks to print money at will. At present, there are about 17.5 million bitcoins in circulation, and less than 3.5 million bitcoins are available for mining. When the next block award halves, bitcoin's annual inflation rate will drop from the current 3.8% to about 1.8%
maintaining deflation through algorithms has always been a part of the design of bitcoin protocol. It was created to guarantee the value of bitcoin. By recing block incentives and keeping the total amount of bitcoin at 21 million bitcoins, bitcoin is endowed with an anti inflation nature, which is different from the tendency of central banks to print money at will. At present, there are about 17.5 million bitcoins in circulation and less than 3.5 million available for mining. The next block award cut in half could rece bitcoin's annual inflation rate from the current 3.8% to about 1.8%. This will be the first time in bitcoin's history that it has fallen below the historical average of about 2% - 3% growth in gold supply
the concept of bitcoin was first proposed by Nakamoto on November 1, 2008, and was officially born on January 3, 2009. According to the idea of Nakamoto, the open source software is designed and released, and the P2P network on it is constructed. Bitcoin is a virtual encrypted digital currency in the form of P2P. Point to point transmission means a decentralized payment system. Unlike all currencies, bitcoin does not rely on a specific currency institution to issue. It is generated by a large number of calculations based on a specific algorithm. Bitcoin economy uses a distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses cryptography design to ensure the security of all aspects of money circulation. The decentralized nature and algorithm of P2P can ensure that it is impossible to artificially manipulate the value of bitcoin through mass proction. The design based on cryptography can make bitcoin only be transferred or paid by the real owner. This also ensures the anonymity of money ownership and circulation transactions. The biggest difference between bitcoin and other virtual currencies is that the total amount of bitcoin is very limited and it has a strong scarcity
warm tips:
1. The above explanations are for reference only, without any suggestions
2. Before investing, it is recommended that you first understand the risks existing in the project, and clearly understand the investors, investment institutions, chain activity and other information of the project, rather than blindly investing or mistakenly entering the capital market. Investment is risky, so we should be cautious when entering the market
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as long as the Fed's loose monetary policy is not suspended, the rise of bitcoin will not stop in fact, the rise of bitcoin has continued since last year. Although there are occasional fluctuations and callbacks, in fact, the rise of bitcoin has never stopped. Although many investors are optimistic about bitcoin, they even think it can become digital gold. But in fact, the rise of bitcoin price is not complicated. The core is that central banks continue to ease monetary policy, resulting in excessive liquidity, which can be seen from the stock market. The stock price has been pushed very high, so the institutions began to inject the remaining liquidity into the bitcoin market, which led to the soaring price of bitcoin