The Bitcoin Halvening
The upcoming Bitcoin halving, or the halvening, refers to the point in time where the rate at which new Bitcoin tokens are rewarded to miners is slashed in half. This coded, planned, periodic reduction in Bitcoin rewards to miners, embedded in the formula governing the network, occurs once approximately every four years (or more specifically, once every 210,000 blocks of transactions), and cuts the reward of Bitcoin miners in half — as the name suggests.
In practice, this halving will limit the amount of Bitcoins ever in circulation — specifically at 21 million. In theory, this halving and limitation of Bitcoins in circulation will combat inflation and a devaluation of the cryptocurrency. With that basic information in mind, the following article will more thoroughly explore the halveningphenomenon, how it works, why it is in place, how it protects against inflation, and how Stibits plays a role in the fricitionless exhange of bitcoins between users.
Understandably, some of the language used above and throughout this article may be confusing to those without prior exposure to, or knowledge of Bitcoin, cryptocurrencies, and/or blockchain technology. The following paragraph will lay a basic framework for grasping a better understanding of the halving phenomenon and how it works — in doing so, providing a high-level summary of Bitcoin mining and rewards.
Bitcoin Mining and Its Relevance to the Halvening
Bitcoin mining is the process of applying electricity, or more specifically, computational power, to solving a series of complex mathematical algorithms on the Bitcoin network in a race against other “miners.” This all may sound rather complex, but the major takeaway is actually very simple: the miner(s) to solve these problems first is rewarded — by the underlying program — with Bitcoin. This system is in place to ensure that the transactions on the Bitcoin network are secure and verified (by miners); those “mining” for Bitcoin are verifying transactions on the Bitcoin network. Exactly how and why this process is necessary is rather mystifying to those without technical backgrounds; however, the single most important concept to grasp here is that miners’ rewards will soon be cut in half in the halvening.
Bitcoin Halvening: Intended Purpose and Predictions
Bitcoin’s programming dictates that only 21 millions tokens will ever be issued, and thus circulated throughout the globe, and thus in theory combatting the risk of inflation on the network by (a) limiting Bitcoin’s issuance; and, (b) ensuring that no central authority will be able to create more tokens over time and thus potentially devalue the currency. Some argue that by limiting the circulation of Bitcoin, it will, in fact, actually increase the value of the coins over time, because there are less in circulation and, in theory, they will be in greater demand and relatively-low supply.
The next halving is supposed to take place at some point this month — May 2020 –but the exact date is unknown, seeing as halvenings occur once in every 210,000 blocks of transactions. The specific effect on the price of Bitcoins and their value in the aftermath of the halvening is also unknown at this point. Previous halvenings have resulted in an immediate rise in Bitcoin’s price. In 2012, Bitcoin’s price shot up a whopping 8,000% in the twelve months following the halving; in 2016, the price rose nearly 1,000% following the rewards cut. But again, it is impossible to predict how the price will move following the impending halvening.
Importance of the Halvening in Light of COVID-19
The United States, along with a plethora of other large and wealthy nations throughout the world (such as Japan, for example) have injected their economies with significant debt and newly printed fiat currency, a result of their national banks efforts to stabilize big/mid-size businesses in the wake of COVID-19. Such drastic money printing and debt mongering may result in the devaluation of these nations’ currencies and, consequently, precipitate a period of inflation that could last for who-knows-how-long in the United States, Japan, and elsewhere. The devaluation of national, fiat currencies, either brought about or instigating by overzealous money printing is by no means a novel issue in the global economy. Going back generations, ramped inflation caused by money printing has plagued economies time and time again, and will continue to do so, as long as fiat currencies and monetary systems are widely used and popularized. The promise and benefit of Bitcoin and the halvening, thus, is that the currency’s circulation will be limited, and capped off at specifically 21 million Bitcoins, as its programming instructs. Consequently, a scenario involving the devaluation of Bitcoin through coin printing and over-circulation is a virtual impossibility, primarily owing to the halvening phenomena. As a result, many people believe Bitcoin to be an excellent source of stability and value in the midst of these extremely turbulent and uncertain economic circumstances.
To that point, the frightening current state of the global economy has put pressure on prudent investors to act hedge their bet in light of these global circumstances and the likely prospect of inflation. In that light, many financial experts argue that owning some cryptocurrency is a great way of hedging one’s bets in the market to protect against the seemingly unavoidable devaluation of various fiat currencies throughout the globe.
However, many who view Bitcoin as a good investment and source of stability, particularly in light of the halvening and the current global economic state of disarray, remain tentative about owning and trading Bitcoin — most likely owing to a cautious, wary, and guarded approach they’ve adopted against cryptocurrencies, which is likely a result of floating rumors and whispers regarding the complexity and esoteric nature of Bitcoin and its underlying technology. Stories about Bitcoin users losing their money via wrong end user transactions (losing money because you send it to a wrong account by accident) have probably only served to exacerbate their concerns.
Cryptocurrency key addresses are, for the most part, often overly long, complex, and difficult to use. But, Stibits new, proprietary, and state-of-the-art algorithm allows users to easilysend and receive cryptocurrencies in a matter of minutes. To that point, the Stibits app is user friendly and understandable to anyone — no matter their familiarity with cryptocurrencies or blockchain technology. And thus, Stibits can help crypto users (and in light of the upcoming halvening, specifically Bitcoin users), to own, send, and receive Bitcoin to/from anyone, anywhere, anytime, by just entering the intended recipients name. And thus, Stibits is the perfect platform for those who intend to take advantage of the halvening but aren’t sure where to store and utilize their Bitcoin.
How Stibits Plays a Role in Facilitating Crypto/Bitcoin Ownership and Usage
Stibits is the ideal platform for those aiming to accrue an interest in cryptocurrencies, and specifically Bitcoin, and need a place to transact with it. Stibits quells prospective crypto users’ fears about losing their money on traditional cryptocurrency platforms by adding identity onto the blockchain. On Stibits, many of the security risks that have traditionally plagued other cryptocurrency platforms are obsolete; on the Stibits platform, user data is safely encrypted and virtually impossible to hack. Not only does Stibits protect against data hacking, but, equally as important, against the potential danger of wrong-end-user transactions, which have costs Bitcoin and crypto users millions of dollars in lost coins to date. Here’s a basic primer on how Stibits works:
(1) Create an account easily and in a matter of minutes;
(2) Add existing keys to your account, or create a new one — free of charge;
(3) Search for your friends’ profiles on the Stibits platform, or rather — simply invite them using their e-mail address or phone number.
(4) Send and receive cryptocurrency through Stibits in a matter of seconds with no hassle.
Really, using Stibits is as easy as that. By associating users’ public key with a user profile, Stibits has, in essence, eliminated the problem of lengthy key addresses and wrong end user transactions, saving Stibits users what would undoubtedly be exorbitant amounts of lost crypto on other platforms. Stibits is on the cutting edge of financial service technology within the blockchain sector — thankfully making the transfer of cryptocurrencies faster, easier, and safer for everyone.
And so, thanks to Stibits, users can bypass the risk of transactional errors and lengthy key addresses altogether. Stibits’ platform enables the frictionless transfer of blockchain assets; users simply enter the name, email address, or phone number of the destined recipient — from there, funds are quickly transferred. User contact information is always verified, and in that sense, users are assured that they are exchanging currency with a real, desired third-party. To that point, every transaction will generate a new crypto address for added safety and privacy.
Lengthy key addresses are now a thing of the past with Stibits — this is because Stibits works with interactive dashboards, which eliminate the need for lengthy key addresses, and allow users to send and receive money in a quick and frictionless manner. Because Stibits has made owning and sending crypto on its platform so easy, prospective Bitcoin users’ shouldn’t be deterred from purchasing crypto and making what many investors believe to be a prudent, long-term investment; instead, they should feel comfortable entering the crypto space with the help of Stibits.
Learn more at: www.stibits.io