One of the unique features of cryptocurrency is that it cannot hold uncontrolled emission. If the Central Bank can print Fiat money in any amount (however, this will lead to uncontrolled inflation), then Bitcoins are over 21 million units can not be. Halving the reward for the block should be considered as a measure to combat inflation. Today we will try to understand what consequences it may bring.
When to expect lower rewards for mined block as Bitcoin reacted to this in the past
Online calendars suggest that the decrease in the bounty amount will occur no earlier than may 2020 If nothing catastrophic with hasraton happens, you can focus on that date.
This is not the first decline in awards in the past this happened:
- in 2012 when the miners instead of 50 PTS per block of steel to only 25 PTS;
- in 2016, the reward fell to 12.5 PTS.
One of the downsides of reducing the payout for a block is called loss of interest in the crypt part of the miners. Indeed, mining is not so profitable as before, so that part of small “diggers” will really go. Will survive only the big players.
On the other hand, practice of previous years shows that the halving of rewards nothing catastrophic happens.
The collapse can see was not, in July 2016, it was about on the same level as in June.
The figure above shows a graph of Bitcoin for 2016 In the July payments for the unit fell to 12.5 PTS, but a collapse did not happen, although the income of miners actually decreased.
The likely impact of Polovinnaya awards for the unit in 2020
Consider all the possible options:
- the outflow of miners – most likely this will affect the smaller players teetering on the verge of recovery. Major miners will remain in service, they are bottom for the future and can afford some time to zero or even with a small loss. On Hasrat care of small players unlikely to affect;
- depreciation – an unlikely scenario, more likely a small increase caused by this phenomenon. Major players due to the fact that mining will bring less than coins you can start to buy PPC on the exchanges, and increased demand always results in the growth rate;
- the increase in transaction fees – most likely it will happen. Increasing the fee is the only way to increase the income of miners in terms of reduced payments for the unit. In July 2016, the increase was almost imperceptible – from $0.16 to $0,19 per transaction, but in 2020 the situation will be different. Will greatly increase the complexity, it is unknown how they will fared with the ease of doing this business. So the growth of the Commission from the accounts will not be reset;
- the emergence of new forks of Bitcoin – unlikely. There are already several forks and grounds for further division of the community yet;
- the decline in investments in infrastructure for the production of coins. By 2020, from scratch to organize a farm for Bitcoin mining would be too expensive, so the major players will be limited to maintaining existing infrastructure;
- the transition to other crypt – do small players. Investors have invested in Bitcoin, and will continue to do so, buying already mined coins on exchanges.
For ordinary users crypts halving of the reward for the block is not generally bears no risks. Rate due to this phenomenon may be even greater, and that miners will earn less owners crypts don’t really care.
From frankly negative consequences highlight the possible growth of the Commission. It really can happen and this phenomenon will only accept.
In General, the grounds for concern, the existence of a Bitcoin or its popularity is not threatening.
Author: Full Lucky, a resident of Freedman Crypto Club New
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