Why Has Satoshi Nakamoto Scheduled Bitcoin's Halving?
Today Bitcoin halving is one of the most important events in the crypto community, and it's highly anticipated. It has a far-reaching impact on other cryptocurrencies as well as the price of Bitcoin. But, why has Satoshi Nakamoto programmed this event? What is the main outcome of this halving? We answer these questions and more below.
What is Bitcoin Halving?
The term suggests that Bitcoin halving includes cutting in half the block rewards of the miners. It is scheduled to happen every four years or after 210,000 blocks are mined on the blockchain network. At first, the reward before the first halving was set at 50 BTC, and when the first having occurred, it decreased to 25 BTC. Furthermore, with the halving in 2016, the reward was reduced to 12.5 BTC, and lastly, in 2020 was minimized to 6.25 BTC.
Each subsequent halving increased the costs of mining because the reward was decreasing, and the number of miners on the network was rising. This meant that there was a lot of competition, and miners (that are also regarded as producers of BTC) needed to invest in special Bitcoin mining equipment or join Bitcoin mining pools or farms to profitably mine BTC.
The main reason why Satoshi Nakamoto created Bitcoin halving as an event is that there is no authority or institution which is charged to control the supply of BTC. Therefore, Satoshi programmed Bitcoin halving, which essentially halves the inflation rate, and by doing so, it slowed down the rate at which new BTC are created. In comparison, there was a greater demand for BTC than the current supply, and therefore Bitcoin's price kept growing.
The Main Outcome
The main outcome was a bull cycle of Bitcoin in 2020, which lasts even now. Over the course of 2020, Bitcoin quadrupled in value. It also helped the proliferation of online trading platforms because the demand and interest for BTC were simultaneously growing as the price was reaching new records.
One good example is the exchange platform Bitcoin Storm app, which you can download on iOS and Android mobile devices. On the platform, the daily ROI is up to 60%, so you can potentially generate daily profits of up to $1500. The minimum deposit to start trading on the move here is $250.
21 Million BTC and Bitcoin Halving
If you look at data from previous Bitcoin halvings, you will see that the price rises afterward. But, not only that, as the price rises, a lot more institutional investors and companies invest in BTC. Brands like Tesla, MasterCard, and many others are buying BTC, which fuels the demand and Bitcoin's bull cycle. So, all in all, Satoshi Nakamoto has created an inflation-resistant asset, while the scheduled halving has nurtured the value of Bitcoin and helped its growth.
So, overall, Bitcoin halving is one of the main reasons why Bitcoin achieved great success. Another reason why the halving has the effect it does is that Satoshi Nakamoto set an upper limit to the number of BTC to 21 million. So, from the beginning, there is a finite supply of BTC, which means that with each halving, the current supply is diminishing even further.
Conclusion
In conclusion, the blockchain network and the Bitcoin ecosystem were designed to work without any outside interference of any institution. Thus, Bitcoin halving is a crucial event, and without it, no cryptocurrency will achieve significant success.
Furthermore, the bull cycle of Bitcoin has had an impact on the bull cycles of other cryptocurrencies. It also attracted a lot more attention from the media, which helped the public get to know the benefits of cryptocurrencies and Bitcoin. Also, it does help that online exchange sites are very accessible, and you can trade on the move from your mobile device.