Bitcoin Halving
Bitcoin is the King in crypto World. At the beginning of the birth of Bitcoin, Satoshi Nakamoto formulated a rule that the Bitcoin system digs out a block every 10 minutes on average , and miners can get 50 bits per block. Coin rewards, after 210,000 block transactions are completed, the rewards will be halved.
Every 210,000 block transactions of Bitcoin are completed, the reward will be halved. At this time, let’s calculate , 365 (days) x 24 (hours) x 6 (6 ten minutes) = 52560, so much dug out in a year , How many years is enough for 210,000 blocks? The answer is that 4 years is enough, so this is the origin of "halving in four years".
According to the halving rule, the total output will also be halved every 4 years, and this decay is very fast. In fact, the number of bitcoins produced from the birth of bitcoin to the present has reached 88% or more of the total 21 million .
Why is Bitcoin halved?
The root cause is the consideration of supply and demand. Imagine an extreme situation: if a large number of bitcoins are produced without restriction in a short period of time, then bitcoins will inevitably become worthless due to excessive circulation. From an economic point of view, it is like printing money. If you keep printing and sending money, the money will become less and less valuable. If you print too much, it will cause inflation. The same is true for Bitcoin. As a reward for miners to package blocks, it cannot be rewarded endlessly. The total number is constant at 21 million, and the number of rewards to miners is reduced by half every four years. If it is dug out, it will not continue to reward new coins. Bitcoin is designed the way it is to control inflation.
Conclusion:
Bitcoin's four-year halving is a calculation of its yield rule design . Why is the total amount fixed, and continue to reduce its new supply by halving the output, so as to avoid Bitcoin being dug out quickly? The answer should be: Bitcoin's four-year halving is designed to give Bitcoin more value.
