Halving means appreciation, is half a Bitcoin more valuable?

Recent epidemic impact

Big star was forced to stay at home

But it banned my jio

I can’t help but pay attention to the blockchain circle!

So starting today

Daxing decided to give a p

And students who actually want to understand blockchain

Talk about the details and family affairs of the blockchain circle

Dear friends who follow Daxing,

Speaking of the hot topics in the circle in 2020

Bitcoin halving is the most talked about topic

Understanding the halving event

We have to start with the mysterious father of Bitcoin

Satoshi Nakamoto, the father of Bitcoin. After inventing Bitcoin, he gradually faded out of people's sight. Due to his perfect confidentiality, people still cannot confirm his true identity.

When Satoshi Nakamoto invented Bitcoin

I hope to invent a

A currency not controlled by anyone

Different from the US dollar and RMB, which can be issued unlimitedly by the country

The total amount of Bitcoin is limited

And the transaction is completed directly point-to-point

The way to get Bitcoin is "mining"

As for the mining process, we can understand it this way

In order to promote this currency in the early stage

Satoshi Nakamoto set up Bitcoin

The attribute of " whoever comes to mine first gets more"

Simply put, a new block is generated every ten minutes.

The math problems of sealing blocks will become more and more difficult

Initially, you can use a personal computer to unlock

But as the difficulty increases

It takes a more professional mining machine to unlock

At the same time, 210,000 blocks are generated (about 4 years)

Block rewards will be cut in half

This is what we call Bitcoin halving.

Initially, the reward for each block was 50 bitcoins.

In 2012, the first halving occurred

The reward has been increased to 25

Four years later, it became 12.5

Four years later, this year

The block reward will be halved again in May, becoming 6.25

At this time, there may be a cute little kid who is playing with paper tearing.

As long as I want, a piece of paper can be torn in half infinitely

So according to this logic, can Bitcoin also be halved indefinitely?

Since the total amount of Bitcoin is limited

So after a certain period of time

Block rewards will be halved to an infinitely low level

Strictly speaking, there are no 21 million bitcoins.

According to Bitcoin's supply formula

The actual number of bitcoins is 20,999,999.9796

According to the setting of halving mechanism

In 2140, all Bitcoins will be mined

Here, we can easily find

The halving mechanism was actually an early operational plan for Bitcoin.

Satoshi Nakamoto used this "early bird effect"

Attracting the earliest seed users for Bitcoin

Most of these early users are technology geeks and

Many of them played a role in the subsequent history of blockchain.

Left a strong mark

A guy named Laszlo once exchanged 10,000 bitcoins for his favorite pizza, and uploaded the photo to the Internet.

The reason why halving has caused such high heat

This is because shortly after the first two halvings

The market has ushered in a wave of super market

The first time was on November 28, 2012

After the 210,000th block is generated

The block reward has been reduced from 50 to 25

In the next year

The price of the coin has risen from $12.3 to

Until November 30, 2013, it reached a peak of $1175

It is worth mentioning that the mining difficulty increased during this period

The era of personal computer mining is basically over

Specialized mines began to emerge

The second halving occurred on July 9, 2016

After the 420,000th block is generated

The block reward has been increased from 25 to 12.5

The bull god descends again, pulling Bitcoin from $654 to another wave of surge

On December 16, 2017, it reached an all-time high of $19,891

The highest price point of the currency that has not been broken so far

According to historical data, after each halving,

The price of Bitcoin has indeed seen a wave of increases

So people are concerned about the upcoming third halving

There are various conjectures

But in fact, the conclusion that halving will definitely bring about a bull market is not valid.

Even the only weak connection between the two

Only exists in the change of supply and demand

From another perspective, although Bitcoin has experienced sharp rises and falls,

But the overall trend is upward

So no matter what time

There will basically be an upward trend around here.

Therefore, there is no necessary connection between halving and bull market

It’s just that the first two halvings were followed by a big surge.

And investors sincerely hope to find a definite rule in the ups and downs of the K-line

But even if we can make a comprehensive summary

No one can guarantee an accurate prediction.

Maybe this is the charm of the market.