LEARN AND EARN Challenge - "What is Bitcoin Halving ?"steemCreated with Sketch.

in Project HOPE4 years ago (edited)

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Hello Everyone!! I hope you are all having a great day? I guess you should and if you are really not having a great, I'm quite sure this post will surely make your day more lively and fulfilling 💪😊.

My meeting with Project Hope Team

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I had a lengthy conversation with @project.hope team about ways in which we can reward users who make quality comments on this platform because I do believe everyone has the right to be rewarded for their activities on the platform. It's really so boring after making quality post and you end up with little or no comments sometimes and it really feels good when you really learn from other people's opinion or thoughts about your post. This really makes the platform more engaging and interactive!

The team out of their compassionate act and good vision for the community agreed to my claim and they gave a condition that they are ready to support this cause provided every users will share their knowledge on topic given by the content creator just by making quality comment within 50 - 300 words on the topic at hand. This implies that every single user who is able to make quality comment about the topic posted by sharing their ideas and perception about the topic will surely receive a cool amount of upvote from the community account (the upvote is gonna be between 100k - 200kSP depending on the comment quality).

After hearing from the team part, we both concluded and we've actually decided to give it a trial just to observe if everyone is really gonna be interested in sharing their knowledge with us through the comment section about the topic posted and earning cool upvotes in return for their quality comments. This is why we've decided to give the challenge tittle Learn and Earn!!

What is Learn and Earn all About?

Learn and earn is just about you making valuable comments about a particular post by sharing your ideas and knowledge in the comment section of the post just to make others learn from your comment and you get rewarded for sharing your ideas in return. Remember you are just to make a good comment between 50 to 300 words!

THE TOPIC FOR TODAY IS BITCOIN HALVING

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There is actually no doubt that Bitcoin halving has actually been one of the trending discussion in the crypto space today and I'm quite aware most of us might have one or two things to say about Bitcoin halving.

In the comment section, you'll be sharing your view about:

  • what Bitcoin halving is all about
  • how does it affect bitcoin demand, supply and inflation
  • what were your bitcoin price expectations after recent halving and did your expectations came true".

Who can take part ?

The challenge is open to everyone reading this post 😊

Motive behind the the challenge?

To reward users who engage in quality comments by sharing their ideas and knowledge about the topic.

To also make the platform more interactive and more engaging which tends to develop a sense of great between interaction users.

To share knowledge and increase learning activities amongst users on the platform.

How do you take part?

To take part in the challenge, you need to write a comment under this post that explains your idea about Bitcoin Halving.

The following rules have to be observed:

  • The comment has to be in English

  • Only one entry per account

  • Between 50 and 300 words

  • No external posts – only comments to this post will be accepted

  • The comment has to be posted before this post payout.

  • Subscribe to Project Hope

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Thanks for your time and much thanks to @project.hope team for their support and my special thanks goes to @crypto.piotr for his positive impact on the platform.
I hope you all have a great day ahead with love from @hardaeborla. Good Luck!! 😊

❤️💕❤️💕❤️💕❤️💕💕❤️💕❤️

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@hardaeborla, that is a great initiative, so here is my view:

What is halving?

Satoshi Nakamoto programmed that bitcoins will be released into circulation gradually with each block mined. The final amount is a 21 million BTC.
Bitcoin transactions are grouped into blocks that follow each other to form a blockchain. Mining of one block takes about 10 minutes in the Bitcoin network, and at the beginning of mining, i.e. in 2009, the miner received as a reward for mined block as much as 50 BTC.
This amount is always halved after 210,000 mined blocks, which occurs approximately once every 4 years. Last halving happened on May 11th 2020. From that time, miners receive 6,25 BTC as a reward for each mined block. As it was the third halving, the block with a halved reward was a block no. 630 000.
To that date, approximately 87% of all bitcoins have already been mined so only 13 more % are about to be mined in the future.

Inflation

The annual inflation rate or the number of newly mined coins dropped from 3,65% to approx. 1.8%. In the next 4 years, after the 4rd halving, the inflation rate will drop to 0,9% and so it will continue.

The price impacts

Halving is a predictable fundament written in the source code of Bitcoin. Miners put this event to the price of Bitcoin in a few months advance. As the result of the Bitcoin halving, the price tends to skyrocket approx. one year after this event. I expect to happen the same. Please, fasten your seat belts! I would say that the next ATH will be reached within the next 12 months.

BTC-halving-2020

This post has been rewarded by the Steem Community Curation Project. #communitycuration07

Wow! 3.65 - 1.8% seems to be a very high drop and the next will also drop to 0.9% as you've claimed... Wow! That's really much though.

I also love the graph or BTC curve chart you included in your write up and this really explained BTC event happening with respect to the supply and inflation rate.

 4 years ago (edited)

Dear @ritxi

Brilliant piece of work buddy. We've upvoted already it with PH and steemcurator06 accounts.

I would like to take an opportunity and share with you post by @ qsyal, related to Halving:
After more 10 days ..Should I get optimistic or pessimistic about the Halving?

This user just joined our community recently (after long break) and I'm helping him to get some valuable traffic. Hopefully you will find this article worth checking out :)

Enjoy your sunday,
Yours, Piotr

Thanx, I will take a closer look on his/her work.

Starting by saying this is one of the most interesting initiatives ever developed in this platform.

Me like many others (the majority) are going through their first halving event. Firstly it was something that was pointed out that it would affect BTC price, but with the day getting closer and closer we started to realise that most of the price fluctuation usually happens after the halving.

Being more specific, the BTC Halving is what separates this digital currency from the usual currency controlled by our government, this means every 4 years the rate of "printing"/mining BTC gets reduced in half. While the opposite happens with the USD and major physical currencies that get printed more and more without any justification.

Based on the 2 previous halving events we saw the price growing exponentially and establishing a new all time high. The same is expected to happen this time. To be honest I had no expectations, after a bear market we know the price will go up, its just a matter of finding out how much and that´s a question no one can answer but we all have our guesses :D

There are some thesis that predict that the price goes up around 10x every cycle (every 4 years), as we can see on the two pictures below.

I have a thought that some might not agree, but using simple math. If our previous support was around $4K because it was not profitable for miners to keep mining BTC below that price. Now that the supply was reduced in half I think its safe to assume that our new bottom (support line, for those more technical) just jumped to $8K. I´m not a financial adviser, but to me this means we are so close to the bottom that buying BTC now is the only answer and this premise will eventually push the prices UP.

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Hopefully this isn't much more than 300 words, I could talk about this all day, and I am super curious to see what I can learn from all of you guys!

Wow! This is very well explained. You won't actually believe that I'm just learning that BTC mining is also known as BTC printing 😀.

I also love the chart and BTC curves you applied to the post making it more easy for me to comprehend.

Glad I can help!

I always heard that an image is worth more than 1000 words; So every time I have one I use it to show my point or explain something :D

I am frankly speaking very impressed with your contribution. Thanks for sharing your thoughts.

Really appreciate the feedback!!
It's very motivating... I'm here to help!

It's my pleasure.

 4 years ago 

Dear @diogosantos

Brilliant piece of work buddy. We've upvoted already it with PH and steemcurator06 accounts.

I would like to take an opportunity and share with you post by @ qsyal, related to Halving:
After more 10 days ..Should I get optimistic or pessimistic about the Halving?

This user just joined our community recently (after long break) and I'm helping him to get some valuable traffic. Hopefully you will find this article worth checking out :)

Enjoy your sunday,
Yours, Piotr

I've always thought that Bitcoin was created by an alien or a time traveler. And halving, in my opinion, is a condition of seeing the future. Who can think of these things? How do you design something so strange (this person must have smoked some kind of stale peyote)?.

Halving, from what I understand, is a process that causes bitcoin miners to receive half of what they previously received as a reward for mining the bitcoin blockchain blocks. There will be exactly 34 halvings. By that time the miners will not receive any bitcoin for their mining process, they will only receive payment for the transactions (this will probably be by the year 2140, so I don't think it will be our problem anymore).

In my opinion, this means that the mining process will be reduced due to the energy and calculation costs required since with each halving they will receive less reward.

Some say that this will raise the value of Bitcoin, they are probably right because the Bitcoin emission is reduced and this makes the demand greater than the supply, which causes an increase in the price of Bitcoin.

I hope I didn't write too much ;P

Thanks for the challenge! :D

Lols... Your first paragraph really got me laughing, how can an alien create such a advance technological system? 😂😂😂

Halving, from what I understand, is a process that causes bitcoin miners to receive half of what they previously received as a reward for mining the bitcoin blockchain blocks. There will be exactly 34 halvings. By that time the miners will not receive any bitcoin for their mining process, they will only receive payment for the transactions (this will probably be by the year 2140, so I don't think it will be our problem anymore).

The miners are really gaining more influence by their mining actions though but I'm quite astonished about miners receiving their payments in the year 2140.. That's really still very far

Thanks for your comment

 4 years ago 

Dear @jadams2k18

Brilliant piece of work buddy. We've upvoted already it with PH and steemcurator06 accounts.

I would like to take an opportunity and share with you post by @ qsyal, related to Halving:
After more 10 days ..Should I get optimistic or pessimistic about the Halving?

This user just joined our community recently (after long break) and I'm helping him to get some valuable traffic. Hopefully you will find this article worth checking out :)

Enjoy your sunday,
Yours, Piotr

Wooo friend @hardaeborla, thanks for sharing this original idea, congratulations this really encourages participation.

Regarding today's topic, I must say that I knew about Halving BTC very recently and I was interested in doing a little research, I think most of them here understand what this means.

Halving is an event in which the block reward of a cryptocurrency is divided in half in order to reduce its emission level, it is an automated process of halving the bitcoins that miners receive as a reward for block creation

After this event the reward will be reduced to 6.25 for each block.

As for the expectation generated around the Halving, I think that many expected an immediate rise in the price, I include myself, but I think that if a bullish raly is produced, it will be slowly.

Another issue that should be discussed is mining, as it affected miners the reduction in half.

Thanks friend!

As for the expectation generated around the Halving, I think that many expected an immediate rise in the price, I include myself, but I think that if a bullish raly is produced, it will be slowly.

Lols... most people are really expecting the bullish rally to be very fast after the halving process even though it may actually take time for this to happen

 4 years ago 

Dear @fucho80

Brilliant piece of work buddy. We've upvoted already it with PH and steemcurator06 accounts.

I would like to take an opportunity and share with you post by @ qsyal, related to Halving:
After more 10 days ..Should I get optimistic or pessimistic about the Halving?

This user just joined our community recently (after long break) and I'm helping him to get some valuable traffic. Hopefully you will find this article worth checking out :)

Enjoy your sunday,
Yours, Piotr

 4 years ago 

This is a great initivative !

I would like to put my attention on the fact that halving has actually the greatest impact not on the price but on the miner of the bitcoin network.

It means that for the same amount of work, the output from mining will be halved. What does this mean?

Some miners will get out of business

A huge majority of the mining capacities and mining pools are nowadays in china. The mining capacities are defined by two things:

  • the quality of the mining equipment
  • the costs for electricity

In order to make a profit from mining the output from the mining activites have to be logically higher than the costs for equipment and electricity.

However the halving has no impact on the costs of mining, it only impacts the output. This means that many miners will not be able with the same costs to generate a profit.

Reduced mining capacities

This means that the overall mining capacities will decline. We can imagine that nobody lets the mining equipment turn if they don't make a profit with it.

Redistribution of mining capacities

Since there is less to earn with mining, it will become even more important to reduce costs. This will push manufacturers of mining equipment to make these more efficient. If the equipement can produce more hashes and at the same time spend less electricity, it will become possible to earn more.

At the same time, we might assist to a redistribution of the mining capacities to places where electricity is almost free of charge. A good exemple is Iceland where there are quite significant mining capacities fueled by geothermic energy. At the same time the climate in island is cold and there is not much cooling needed.

I think we will in the long term all profit from halvings because it will force the industry to be more efficient and more economic and to use renewable energies to fuel mining activities.

I'm sorry it got a bit long...

I actually agree with your points as regards to some miners quitting their jobs due to the high cost of electricity or power involved in mining such a minimal amount of BTC but I think majority will actually want to continue mining despite those factors genuine factors.

 4 years ago 

Dear @achim03

Brilliant piece of work buddy. We've upvoted already it with PH and steemcurator06 accounts.

I would like to take an opportunity and share with you post by @ qsyal, related to Halving:
After more 10 days ..Should I get optimistic or pessimistic about the Halving?

This user just joined our community recently (after long break) and I'm helping him to get some valuable traffic. Hopefully you will find this article worth checking out :)

Enjoy your sunday,
Yours, Piotr

Bitcoin halving is the decrease in the amount of new bitcoins generated per block. This means the lowering in the supply of new bitcoins by half its original supply. It is believed that halvening of bitcoin has a way of influencing the price as demand to supply ration would increase, thereby leading to higher price.

In normal markets, lower supply with steady demand usually leads to higher prices. Since the halving reduces the supply of new bitcoins, and demand usually remains steady, the halving has usually preceded some of Bitcoin's largest runs.. source

Below is a chart showing the price responses of bitcoin to its halvening in 2012 and 2016 respectively, The chart indicates that the price of bitcoin had jumped significantly after each halving. In the image below, the vertical green lines indicate the previous two halvings (2012-11-28 and 2016-7-9).

Having shared a brief of my understanding on bitcoin, I can therefore deduce that halvening the supply of a crypto is meant to manipulate the price of the token to the favour of miners and hodlers.

This to me means that all cryptocurrencies should at intervals half it's supply. I wish all bitcoin hodlers the best as they all anticipate a price pump effect after the third halving. It's been few days after the third halving of Bitcoin. We are not yet seeing the effect of the Halving as a 150 days of incubation is predicted before the changes in the price.

However, there were FUDs about price jumps which led to the high demand of Bitcoin last week and a subsequent price pump. Most were uninformed.

On my part, I had expected a healthy trading of Bitcoin above the $10,000 mark. It happened but was temporary. I am again maximizing the dips and I hope for a bull run after 50 days.


Thanks @hardaeborla for collaborating with @Project.hope on this. PH community has always been the hub of engagement on the social blockchain space.

This is really explicit @uyobong and I'm really impressed with your analysis.

On my part, I had expected a healthy trading of Bitcoin above the $10,000 mark. It happened but was temporary. I am again maximizing the dips and I hope for a bull run after 50 days.

I noticed it actually reached $10,000 mark during the halving process and it drastically reduced again but I'm quite sure the price will surely surpass 10,000 USD with time

 4 years ago 

Dear @uyobong

Brilliant piece of work buddy. We've upvoted already it with PH and steemcurator06 accounts.

I would like to take an opportunity and share with you post by @ qsyal, related to Halving:
After more 10 days ..Should I get optimistic or pessimistic about the Halving?

This user just joined our community recently (after long break) and I'm helping him to get some valuable traffic. Hopefully you will find this article worth checking out :)

Enjoy your sunday,
Yours, Piotr

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First let me say that this is an excellent initiative. It is my third Halving, I have been with Bitcoin since it was $ 300 and I think that despite these events programmed by nature in the bitcoin code by Satoshi Nakamoto. The market and the financial structure of price quotes respond to a naturalness expressed in three factors: space, price, time.

So the price of BTC will rise as long as the professional money is positioned solidly and prove that the offer present at the important levels is only residual and not from strong positioning.

The great difference of this Halving is that it has occurred with the accompaniment of a global pandemic that has completely shaken the financial markets and that has also led to the purchase by large investors that bitcoin is a strong refuge asset with a capacity of faster recovery than gold. Event that was demonstrated after the great fall of March 12 of this year.

Bitcoin is undoubtedly an asset that has different characteristics and nobilities than traditional assets, but it must still respect the natural laws of the market.

Thanks for this TEAM!!

First let me say that this is an excellent initiative. It is my third Halving, I have been with Bitcoin since it was $ 300 and I think that despite these events programmed by nature in the bitcoin code by Satoshi Nakamoto.

Firstly thanks for the great commendation and I really appreciate this 😊. The initiative is just to make users to learn and earn.

It seems you've actually been in the crypto space for quite a long period of time because I could still remember that BTC used to worth around $300 for more than 5 years from now.

So the price of BTC will rise as long as the professional money is positioned solidly and prove that the offer present at the important levels is only residual and not from strong positioning.

We all are really hoping for this to really happen. Most investors really invested more into BTC just to earn very big.

Bitcoin is undoubtedly an asset that has different characteristics and nobilities than traditional assets, but it must still respect the natural laws of the market.

This is actually one of the qualities of Bitcoin generally and this is why it will continue to remain the best asset owned by people.

Thanks for your lovely comment

Thanks for your answer. And thanks for this initiation in the steemit community. Thanks a lot.

 4 years ago 

Dear @ale.aristeguieta

Brilliant piece of work buddy. We've upvoted already it with PH and steemcurator06 accounts.

I would like to take an opportunity and share with you post by @ qsyal, related to Halving:
After more 10 days ..Should I get optimistic or pessimistic about the Halving?

This user just joined our community recently (after long break) and I'm helping him to get some valuable traffic. Hopefully you will find this article worth checking out :)

Enjoy your sunday,
Yours, Piotr

Hello @hardaeborla, greetings @crypto.piotr and @project.hope.
Always grateful for the support you give to community projects. The truth is that I love to always comment when I am tagged. I am using a translator, I hope my words are understood. I don't know much about the topic you are raising, cutting something in half means that someone is receiving more or someone else is not receiving more. I really do not handle anything about the bitcoin topic, I love writing and my son was the one who encouraged me to be in this new world for me. But I am not discouraged, I keep trying to understand many things, since I am able to change currencies that are very helpful to buy food in my home and that has helped many Venezuelans. In this pandemic being locked up has distracted my mind.

Hola @hardaeborla, saludos @crypto.piotr y @project.hope.
Agradecida siempre con el apoyo que le das a los proyectos de la comunidad. La verdad es que me encanta comentar siempre cuando se me etiqueta. Estoy usando un traductor espero que mis palabras se entiendan. No sé mucho sobre el tema que planteas, el reducir a la mitad algo significa que alguien está recibiendo más u otra persona dejo de recibir mayor cantidad. De verdad no manejo nada del tema bitcoin, me encanta escribir y mi hijo fue el que me animo a estar en este mundo nuevo para mí. Pero no me desanimo sigo intentando entender muchas cosas, ya logro cambiar monedas que son de mucha ayuda para comprar alimentos en mi hogar y que ha ayudado a muchos venezolanos. En esta pandemia estar encerrada ha distraído mi mente.

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Always grateful for the support you give to community projects. The truth is that I love to always comment when I am tagged

This is really so nice of you 😊. I also have that same trait of commenting when people tag me in a post. I'll always make comments as a sign of respect to show that I saw your tagging 😊

I am using a translator, I hope my words are understood.

Yes of course 😊

I don't know much about the topic you are raising, cutting something in half means that someone is receiving more or someone else is not receiving more. I really do not handle anything about the bitcoin topic, I love writing and my son was the one who encouraged me to be in this new world for me. But I am not discouraged, I keep trying to understand many things, since I am able to change currencies that are very helpful to buy food in my home and that has helped many Venezuelans. In this pandemic being locked up has distracted my mind.

It's really great to know your sincere opinion about the topic at hand. The fact is that not everyone is really knowledgeable about cryptos or BTC halving and this is one of the reasons challenges like this are created just to enable others to learn and earn for their contribution. 😊

Also your son must be a very smart kid and I really love the kind of character he possess 😀.

Lols... About the lock down, almost everyone is really affected and I'm optimistic we'll surely overcome this with time. 💪

Thanks for your lovely comment and always remember to #staysafe with love from @hardaeborla ❤️💕❤️💕

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