Bitcoin Block Reward Halving Countdown

WeareSatoshi

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If bitcoin becomes extremelly valuable, the people who will have the power to change the scheduled block reward halving will be the same ones that most profit from it. How does bitcoin ensures that a majority of miners won't decide not to keep the schedule?

During the paranoid saturday thread I posted this scenario and the more I think about it, the more I believe it's inevitable to happen sometime in the future.
Suppose bitcoin achieves the most optimist scenario where its an essential part of the modern world economy, used for trade worldwide and seen as something that's not going away ever. In this scenario, each bitcoin is worth a lot and mining equipment is very expensive, mostly owned by people who are in for the money — maybe they're banks, corporations or just individuals but what matters is that the pure idealists are the minority.
Now there's a schedule block reward halving coming up. Then someone finds some flaw with that: maybe its technical, maybe it's an economic argument, what matters is that, like the Y2K or bank bailouts, its very hard to actually know how big a problem it will be until it actually happens. There's a chance it's a non issue, but there's also a chance that it will be a problem and then the whole system will be crumbling down and we can't afford that risk now can we? Bitcoin will be too big to fail.
Many heated arguments are held but you know that saying: "it's hard to make someone understand something when their paycheck depends on him not understanding it".. In the end most miners have an economic incentive to believe the issue is real: after all this hipotethical issue is not completely made up, there's some nugget of true.. More than half then agree on postponing the block reward halving until the issue is addressed. They're not creating more money, just buying some time.
But then that temporary thing becomes permanent because no one wants to halve their paycheck voluntarily. And sudennly bitcoins are expected to go over the 21 million limit. People complain but since most of the complainers holds bitcoins they don't want for everything to crash..
Once the cat is out, no one can tell what happens next. Maybe the block reward goes up. Maybe the block rewards gets permanent. Who gets to decide it? The same people who profit from it.
TLDR: At some point miners will have the power to rule over their own rewards. What prevents them from abusing it?
submitted by avsa to Bitcoin [link] [comments]

Minimum Viable Issuance - Why Ethereum’s lack of a hard cap on ETH issuance is a good thing.

This post will explain how the argument used by the average Bitcoin maximalist, thinking that they have found Ethereum’s achilles heel when talking about issuance is actually highlighting one of Ethereum’s strong points and one of the main threats to the longevity of the Bitcoin network.
So first let’s answer the question which I know many people have about Ethereum:

What is Ethereum’s ETH issuance schedule?

Ethereum has an issuance policy of Minimum Viable Issuance. So what does this mean exactly? It means that the issuance of ETH will be as low as possible while also maintaining a sufficient budget to pay miners (and soon to be stakers) to keep the network secure. For example, if ETH issuance was halved, miners would drop off the network and stop mining as it is no longer profitable for them to mine. As a result, the network would be less secure as it would cost less money for an attacker to control 51% of the hash power and attack the network. This means that the Ethereum community plans to change ETH issuance as time goes on to maintain a reasonable security budget which will keep the network secure but will also keep inflation in check. We have done this twice in the past with EIP-649 and EIP-1234 which reduced block rewards from 5 ETH per block to 3 ETH and from 3 ETH to 2 ETH respectively. I previously made a graph of ETH issuance over time here: https://redd.it/it8ce7
So while Ethereum doesn’t have a strictly defined issuance schedule, the community will reject any proposals which either put the security of the network at risk such as the recent EIP-2878, or we will reject proposals which will lead to excessive network security and therefore an unnecessarily high inflation rate (or we will accept proposals which reduce issuance after price rises and therefore the security budget rises). This means that when Bitcoiners accuse the Ethereum Foundation of being no better than a central bank because they can “print more Ether”, this is completely untrue. Any proposals made by the EF which would increase issuance unnecessarily would be rejected by the community in the same way that a proposal to increase the supply of Bitcoin from 21 million to 22 million would be rejected. There is a social contract around both Bitcoin’s and Ethereum’s issuance schedules. Any networks or proposals which break the social contracts of 21 million Bitcoins and minimal viable issuance of Ether would be a breach of these contracts and the new proposed network would be labeled by the community as illegitimate and the original network would live on.

So why is minimum viable issuance better than a hard cap?

Minimum viable issuance is better than a hard cap because it puts the most important part of the network first - the security. MVI ensures that the Ethereum network will always have a security budget which keeps the cost of a 51% attack impractically high. Bitcoin on the other hand, halves its security budget every 4 years until eventually only the transaction fees pay for network security. This means that every 4 years, the amount of money paying for network security halves until eventually, the value of attacking the network becomes greater than the security budget and someone performs a 51% attack (technically the security budget only halves if terms of BTC not in dollars. However, even if the price of Bitcoin more than doubles in the time that the security budget halves, the ratio of security budget to value secured on the network still halves, doubling the financial viability of performing a network attack). The strategy to pay for the security budget once Bitcoin issuance stops is for transaction fees to secure the network since transaction fees are paid to miners. Not only does this have its own security problems which I won’t detail here, but unless Bitcoin scales on layer 1 (layer 2 scaling solutions have their own security mechanisms separate from L1), then fees would have to cost well in the thousands of dollars to secure a trillion dollar market cap Bitcoin that is secured by nothing but fees. If Bitcoin maximalists want a 10 trillion or 100 trillion dollar market cap then expect fees to go up another 10 or 100 times from there.
Ethereum on the other hand, will be able to keep its network secure with approximately 1-2% annual issuance being paid to stakers under ETH 2.0. This is because not all of the network will be staking, so if 33 million of the approximately 110 million Ether in existence stakes under ETH 2.0, then paying this 33 million Ether 6% a year (a very decent yield!) would cost just under 2 million ETH per year which would equate to less than 2% annual ETH inflation. This is also before considering EIP-1559 which will burn a portion of transaction fees which will counter the effect of this inflation and potentially even make ETH deflationary if the sum of all burned transaction fees are greater than the annual inflation. Also, under ETH 2.0, an attacker performing a 51% attack would get his funds slashed (they would lose their funds) if they attack the network, meaning that they can only perform a 51% attack once. However, in Bitcoin, anyone who controls 51% of the mining hash power could perform multiple 51% attacks without losing everything like they could in ETH 2.0.
So in conclusion, while Ethereum doesn’t have the guaranteed anti-inflation security of a hard cap, it does have the guarantee of always paying it’s miners (or stakers under ETH 2.0) enough to keep the network secure. In contrast, while Bitcoin’s social contract may guarantee a hard cap of 21 million, it cannot simultaneously guarantee network security in the long run. Eventually, its users will have to decide if they want a secure network with more than 21 million coins or a tax to pay for security or an insecure network with super high fees and a hard cap of 21 million Bitcoin.
Disclaimer: The details I covered around 51% attacks and network security are simplified. I am not an expert in this field and things are a lot more nuanced than I laid out in my simplifications above.
submitted by Tricky_Troll to ethfinance [link] [comments]

Minimum Viable Issuance - Why Ethereum’s lack of a hard cap on ETH issuance is a good thing.

This post will explain how the argument used by the average Bitcoin maximalist, thinking that they have found Ethereum’s achilles heel when talking about issuance is actually highlighting one of Ethereum’s strong points and one of the main threats to the longevity of the Bitcoin network.
So first let’s answer the question which I know many people have about Ethereum:

What is Ethereum’s ETH issuance schedule?

Ethereum has an issuance policy of Minimum Viable Issuance. So what does this mean exactly? It means that the issuance of ETH will be as low as possible while also maintaining a sufficient budget to pay miners (and soon to be stakers) to keep the network secure. For example, if ETH issuance was halved, miners would drop off the network and stop mining as it is no longer profitable for them to mine. As a result, the network would be less secure as it would cost less money for an attacker to control 51% of the hash power and attack the network. This means that the Ethereum community plans to change ETH issuance as time goes on to maintain a reasonable security budget which will keep the network secure but will also keep inflation in check. We have done this twice in the past with EIP-649 and EIP-1234 which reduced block rewards from 5 ETH per block to 3 ETH and from 3 ETH to 2 ETH respectively. I previously made a graph of ETH issuance over time here: https://redd.it/it8ce7
So while Ethereum doesn’t have a strictly defined issuance schedule, the community will reject any proposals which either put the security of the network at risk such as the recent EIP-2878, or we will reject proposals which will lead to excessive network security and therefore an unnecessarily high inflation rate (or we will accept proposals which reduce issuance after price rises and therefore the security budget rises). This means that when Bitcoiners accuse the Ethereum Foundation of being no better than a central bank because they can “print more Ether”, this is completely untrue. Any proposals made by the EF which would increase issuance unnecessarily would be rejected by the community in the same way that a proposal to increase the supply of Bitcoin from 21 million to 22 million would be rejected. There is a social contract around both Bitcoin’s and Ethereum’s issuance schedules. Any networks or proposals which break the social contracts of 21 million Bitcoins and minimal viable issuance of Ether would be a breach of these contracts and the new proposed network would be labeled by the community as illegitimate and the original network would live on.

So why is minimum viable issuance better than a hard cap?

Minimum viable issuance is better than a hard cap because it puts the most important part of the network first - the security. MVI ensures that the Ethereum network will always have a security budget which keeps the cost of a 51% attack impractically high. Bitcoin on the other hand, halves its security budget every 4 years until eventually only the transaction fees pay for network security. This means that every 4 years, the amount of money paying for network security halves until eventually, the value of attacking the network becomes greater than the security budget and someone performs a 51% attack (technically the security budget only halves if terms of BTC not in dollars. However, even if the price of Bitcoin more than doubles in the time that the security budget halves, the ratio of security budget to value secured on the network still halves, doubling the financial viability of performing a network attack). The strategy to pay for the security budget once Bitcoin issuance stops is for transaction fees to secure the network since transaction fees are paid to miners. Not only does this have its own security problems which I won’t detail here, but unless Bitcoin scales on layer 1 (layer 2 scaling solutions have their own security mechanisms separate from L1), then fees would have to cost well in the thousands of dollars to secure a trillion dollar market cap Bitcoin that is secured by nothing but fees. If Bitcoin maximalists want a 10 trillion or 100 trillion dollar market cap then expect fees to go up another 10 or 100 times from there.
Ethereum on the other hand, will be able to keep its network secure with approximately 1-2% annual issuance being paid to stakers under ETH 2.0. This is because not all of the network will be staking, so if 33 million of the approximately 110 million Ether in existence stakes under ETH 2.0, then paying this 33 million Ether 6% a year (a very decent yield!) would cost just under 2 million ETH per year which would equate to less than 2% annual ETH inflation. This is also before considering EIP-1559 which will burn a portion of transaction fees which will counter the effect of this inflation and potentially even make ETH deflationary if the sum of all burned transaction fees are greater than the annual inflation. Also, under ETH 2.0, an attacker performing a 51% attack would get his funds slashed (they would lose their funds) if they attack the network, meaning that they can only perform a 51% attack once. However, in Bitcoin, anyone who controls 51% of the mining hash power could perform multiple 51% attacks without losing everything like they could in ETH 2.0.
So in conclusion, while Ethereum doesn’t have the guaranteed anti-inflation security of a hard cap, it does have the guarantee of always paying it’s miners (or stakers under ETH 2.0) enough to keep the network secure. In contrast, while Bitcoin’s social contract may guarantee a hard cap of 21 million, it cannot simultaneously guarantee network security in the long run. Eventually, its users will have to decide if they want a secure network with more than 21 million coins or a tax to pay for security or an insecure network with super high fees and a hard cap of 21 million Bitcoin.
Disclaimer: The details I covered around 51% attacks and network security are simplified. I am not an expert in this field and things are a lot more nuanced than I laid out in my simplifications above.
submitted by Tricky_Troll to ethtrader [link] [comments]

Bitcoin is (the best) money for reasons different of what you think

Too much people have a bad understanding of money. We all know that here. But even in Bitcoin, we often read this :
"Bitcoin is money because it is store of value, medium of exchange and wil be unit of account thanks its fixed supply".
This is misleading, those are the functions of money, if a money furfils them well it is a good money but stuff can have these functions without being money.

So what money IS really ?

Simple: a money is a bank IOU. Money is created when a bank gives a loan. Against the IOU, the bank asks the borrower to give it an IOU for the same amount plus interest and Money is destroyed when the principal of the loan is redeem (the bank's IOU vanished, but borower's IOU interest are still there). When we talk about money, we are in fact talking about a banking system, nothing less, nothing more.

In the case of fiat money, the central bankers owns the banking systems. The "regulation" is the set of rules of issuance of fiat (the credit issuance work is made by the commercial banks). When the central bank says it wants X% of inflation it sets how well its money is unit of account. "Stabilize the prices", "avoid hyperinflation" truely means "maintain credibility of the banking system". That's why banks are always saved too, they are just the right arm of the central bank to issue credit, they are the money itself.
Precious metal like gold are popular as a good way to physically represent an IOU because scarcity and durability make them good collateral in case the bank who issues the IOU disappears but it is not money in itself (it also lacks the medium of exchange function because gold can be faked). Gold standard was just a way to issue IOU so that it furfills the store of value and unit of account function automatically and add medium of exchange function (it is easier to check a dollar is a a real one than gold) creating a very good money. This was the choice of the FED before 1971 (and the dollar becames the international money as it was the best money).
So a money is always issued by a banking system as it wish to issue it (meaning it determines who get the loans), a bank provides by its network (of ATMs, of payment processors, of credit agencies...) easy ways to exchange its IOU and backed the IOU to give them credibility. Before all banks were private but when the states started to have one, they centralized all the banking system around it and private banks were forced to issue IOU against state bank's IOU, giving birth to the central banking system and so fiat money (as money = banking system's IOU). State money don't need collateral because you need to pay taxes in state money: the collateral is that you can pay taxes and so not ending up in prison. State money is a violent but hidden freedom restriction.

So now, why Bitcoin is money ?

The Bitcoin's tokens are the IOU of a bank. Who is the central bank ? The Bitcoin protocol. Each node is a bank who applies strict rules of IOU issurance: loans are for miners, preferably the first ones as the supply schedule says. "Run a full node to be your own bank" is litteral, by validating Bitcoin's rules you are like a bank in the current banking system, except the central bank doesn't exist, it is just a protocol you follow with others. The only difference between Bitcoin and classical banking system is that the protocol doesn't ask an IOU to the miners in exchange for the newly created money to destroy it later, it is as if the miners made in fact a deposit of their computational work and the returned IOU value depends of supply schedule and difficulty.
Now, is Bitcoin a good money ? The answer is a bit subjective but mainly yes, it is certainly the best money if we look at how it has the three functions of the money (store of value, medium of exchange, unit of account). The IOU are valuable by the same principle of fiat money is valuable: you can use the Bitcoin ledger only if you pay at least the minimum relay fees... in bitcoins ! You also have to pay additionnal transaction fees but you can also pay them to a miner directly in something else but chance are low he found a block himself. Notice however that nothing force you to use the ledger so Bitcoin is peacefull contrary to state money. Bitcoin's IOU are extremly easy to exchange since if you don't find full node for that, you can just build one as soon as you have internet access ! So bitcoins are the absolute best medium of exchange. And finally, unit of account is more subjective but in expectation the best choice is indeed choosing a capped supply to get a form of price stability.

So there you have it: Bitcoin is money because it is a (peer-to-peer) banking system. It has the three functions of money. Bitcoin is valuable because you need to pay in Bitcoin's IOU to use its ledger (which is valuable for many applications because it is backed by miners' work). Bitcoin is the best medium of exchange because it is permissionless and decentralized: if there is no bank to process your payment, you can build one for you. And finally, the capped supply is the best way to have a unit of account function when you can't adjust the money supply to the economical context automatically.

That's why Bitcoin is the best money for me, if it is not the best it is at least a very good one (many are worse) moreover it is peaceful.


PS : what about shitcoins ? Well they have a value to use their ledger as Bitcoin, but that's all.
Bitcoin's rules take care of your ability to run a full node, not shitcoins, so they are not good medium of exchange (censorship possible). Shitcoins ledger are not as valuable as Bitcoin's one since it has less work. And finally many of them didn't choose a capped supply and the ones who premined or issue a big part of tokens to funders effectively give them the control of the issuance schedule of IOU, so a node is not a true bank: nothing to insure unit of account.

PPS : transaction fees have nothing to do with medium of exchange function. Minimum relay fees is the real taxe imposed to use the ledger and gives value to the token by opening access to the work of miners (it is a commitment to avoid spam). Transaction fees is something else, it is a way for the network to pay miners for their computational work with or without issuing more IOU's depending of the schedule. As miners will mine only if they earn enough money, and as the value of the money first came from this work in the ledger, a valuable Bitcoin-like cryptocurrency can stay valuable only if it has high enough transaction fees (newly issued IOU's included, they are the hidden inflation taxe imposed to all money users if high !). Those transaction fees depends of the congestion which happens when users use the network more than what allows it to stay in consensus, they naturally increase with usage of the ledger and will incitivise miners to mine more in the short term (this will be observed when transaction fees will represent most of the block reward). So the value of the Bitcoin's IOU will also comes from the value of what people can achieve with this ledger when block's subsidy will be lower after some halvings. It is true that transaction fees paid by users (and not issued) restrict the case where the ledger can be used. But the fact that it is used by very few people doesn't make it bad ! (particulary if you can transact IOU's with other networks without the ledger)
submitted by Pantamis to Bitcoin [link] [comments]

About Kevacoin

What’s Kevacoin?
Kevacoin is a cryptocurrency for the blockchain that supports easy and flexible Key-Value data store. Use it like Redis or other popular data store, except that the data is stored on the public blockchain that is not owned by any entities.
The data store is easy to add, update and access. No programming skills are required and it does not need smart contracts and their associated complications and risks.
Use it for publications, microbloggings, public identities, notaries, etc.
Fair Launch
We are committed to fair launch, with no pre-mining, no founders' reward and no ICO.
Open
We developed Kevacoin as an open source project. It is not funded by any companies or foundations. We invite anyone who is interested in the project to join us.
Specifications
- Derived from Bitcoin/Litecoin, with convenient key-value data storage and retrieval.- PoW Algorithm: RandomKeva (a variant of RandomX)- Port: 9338- Block Time: 2 minute- Block Time Retarget algorithm: Digishield (same as Dogecoin)- Block Reward: 500 Keva- Block Reward halving schedule: same as bitcoin- Total Coin Supply: 1,050,000,000 Keva
More Information
- Website: https://kevacoin.org - Github: https://github.com/kevacoin-project - FAQ: https://kevacoin.org/faq.html - Twitter: https://twitter.com/kevacoin - Discord: https://discord.gg/5zPHhbG - Block Explorer: https://explorer.kevacoin.org - Mining Pool: https://kevapool.com
submitted by Invis_TL to kevacoin [link] [comments]

Epic Cash AMA Recap with CryptoDiffer Community

CryptoDiffer team Hello, everyone! We are glad to meet here: Max Freeman (@maxfreeman4), Project Lead at Epic Cash Yoga Dude (@Yogadude), PR&Marketing at Epic Cash Xenolink (@Xenolink), Advisor at Epic Cash
Max Freeman Project Lead at Epic Cash Thanks Max, we are excited to be here!
Yoga Dude PR&Marketing at Epic Cash Hello Everyone! Thank you for having us here!
Xenolink Advisor at Epic Cash Thank you to the CryptoDiffer team and CryptoDiffer community for hosting us!
CryptoDiffer team Let`s start from the first introduction question: Q1: Can you introduce yourself to the community? What is your background and how did you join Epic Cash?
Yoga Dude PR&Marketing at Epic Cash
Hello! My background is Marketing and Business Development, I’ve been in crypto since 2011 started with Bitcoin, then Monero in 2014, Ethereum in 2015 and at some point Doge for fun and profit. I joined Epic Cash team in September 2019 handling PR and Marketing.
I saw in Epic Cash what was missing in my previous cryptos — things that were missing in Bitcoin and Monero especially.
Xenolink Advisor at Epic Cash
Hello Cryptodiffer Community, I am not an original co-founder nor am I a developer for the Epic Cash project. I am however a community member that is involved in helping scale this project to higher levels. One of the many beauties of Epic Cash is that every single member in the community has the opportunity to be part of EPIC’s team, it can be from development all the way to content producing. Epic Cash is a community driven project. The true Core Team of Epic Cash is our community. I believe a community that is the Core Team is truly powerful. EPIC Cash has one of the freshest and strongest communities I have seen in quite a while. Which is one of the reasons why I became involved in this project. Epic displayed some of the most self community produced content I have seen in a project. I’m actually a doctor of medicine but in terms of my experience in crypto, I have been involved in the industry since 2012 beginning with mining Litecoin. Since then I have been doing deep dive analysis on different projects, investing, and building a network in crypto that I will utilize to help connect and scale Epic in every way I can. To give some credit to those people in my network that have been a part of helping give Epic exposure, I would like to give a special thanks to u/Tetsugan and u/Saurabhblr. Tetsugan has been doing a lot of work for the Japanese community to penetrate the Japanese market, and Japan has already developed a growing interest in Epic. Daku Sarabh the owner and creator of Crypto Daku Robinhooders, I would like to thank him and his community for giving us one of our first large AMA’s, which he has supported our project early and given us a free AMA. Many more to thank but can’t be disclosed. Also thank you to all the Epic Community leaders, developers, and Content producers!
Max Freeman Project Lead at Epic Cash
I’m Max Freeman, which stands for “Maximum Freedom for Mankind”. I started working on the ideas that would become Epic in 2018. I fell in love with Bitcoin in 2017 but realized that it needs privacy at the base layer, fungibility, better scalability in order to go to the next level.
CryptoDiffer team
Really interesting backgrounds I must admit, pleasure to see the team that clearly has one vision of the project by being completely decentralized:)
Q2: Can you briefly describe what is Epic Cash in 3–5 sentences? What technology stands behind Epic Cash and why it’s better than the existing one?
Max Freeman Project Lead at Epic Cash
I’d like to highlight the differences between Epic and the two highest-valued privacy coin projects, Monero and Zcash. XMR has always-on privacy like Epic does, but at a cost: Its blockchain is over 20x more data intensive than Epic, which limits its possibilities for scalability. Epic’s blockchain is small and light enough to run a full node on cell phones, something that is in our product road map. ZEC by comparison can’t run on low end devices because of its zero knowledge based approach, and only 1% of transactions are fully private. Epic is simply newer, more advanced technology than prior networks thanks to Mimblewimble
We will also add more algorithms to widen the range of hardware that can participate in mining. For example, cell phones and tablets based around ARM chips. Millions of people can mine Epic that can’t mine Bitcoin, and that will help grow the network rapidly.
There are some great short videos on our YouTube channel https://www.youtube.com/channel/UCQBFfksJlM97rgrplLRwNUg/videos
that explain why we believe we have created something truly special here.
Our core architecture derives from Grin, so we are fortunate to benefit on an ongoing basis from their considerable development efforts. We are focused on making our currency truly usable and widely available, beyond a store of value and becoming a true medium of exchange.
Yoga Dude PR&Marketing at Epic Cash
Well we all have our views, but in a nutshell, we offer things that were missing in the previous cryptos. We have sound fiscal emission schedule matching Bitcoin, but we are vastly more private and faster. Our blockchain is lighter than Bitcoin or Monero and our tech is more scalable. Also, we are unique in that we are mineable with CPUs and GPUs as well as ASICs, giving the broadest population the ability to mine Epic Cash. Plus, you can’t forget FUNGIBILITY 🙂 we are big on that — since you can’t have true privacy without fungibility.
Also, please understand, we have HUGE respect to all the cryptos that came before us, we learned a lot from them, and thanks to their mistakes we evolved.
Xenolink Advisor at Epic Cash
To add on, what also makes Epic Cash unique is the ability to decentralize the mining using a tri-algo model of Random X (CPU), Progpow (GPU), and Cuckoo (ASIC) for an ability to do hybrid mining. I believe this is an issue we can see today in Bitcoin having centralized mining and the average user has a costly barrier of entry.
To follow up on this one in my opinion one of the things we adopted that we have seen success for , in example Bitcoin and Monero, is a strong community driven coin. I believe having a community driven coin will provide a more organic atmosphere especially when starting with No ICO, or Premine with a fair distribution model for everyone.
CryptoDiffer team
Q3: What are the major milestones Epic Cash has achieved so far? Maybe you can share with us some exciting plans for future weeks/months?
Yoga Dude PR&Marketing at Epic Cash
Since we went live in September of 2019, we attracted a very large community of users, miners, investors and contributors from across the world. Epic Cash is a very international project with white papers translated into over 30 languages. We are very much a community driven project; this is very evident from our content and the amount of translations in our white papers and in our social media content.
We are constantly working on improving our usability, security and privacy, as well as getting our message and philosophy out into the world to achieve mass adoption. We have a lot of exciting plans for our project, the plan is to make Epic Cash into something that is More than Money.
You can tell I am the Marketing guy since my message is less about the actual tech and more about the usability and use cases for Epic Cash, I think our Team and Community have a great mix of technical, practical, social and fiscal experiences. Since we opened our YouTube channels content for community submissions, we have seen our content translated into Spanish, French, German, Polish, Chinese, Japanese, Arabic, Russian, and other languages
Max Freeman Project Lead at Epic Cash
Our future development roadmap will be published soon and includes 4 tracks:
Usability
Mining
Core Protocol
Ecosystem Development
Core Protocol
Epic Server 2.9.0 — this release improves the difficulty adjustment and is aimed at making block emission closer to the target 60 seconds, particularly reducing the incidence of extremely short and long blocks — Status: In Development (Testing) Anticipated Release: June 2020
Epic Server 3.0.0 — this completes the rebase to Grin 3.0.0 and serves as the prerequisite to some important functional building blocks for the future of the ecosystem. Specifically, sending via Tor (which eliminates the need to open ports), proof of payment (useful for certain dex applications e.g. Bisq), and our native mobile app. Status: In Development (Testing) Anticipated Release: Fall 2020
Non-Interactive Transactions — this will enhance usability by enabling “fire and forget” send-to-address functionality that users are accustomed to from most cryptocurrencies. Status: Drawing Board Anticipated Release: n/a
Scaling Options — when blocks start becoming full, how will we increase capacity? Two obvious options are increasing the block size, as well as a Lightning Network-style Layer 2 structure. Status: Drawing Board Anticipated Release: n/a
Confidential Assets — Similar to Raven, Tari, and Beam, the ability to create independently tradable assets that ride on the Epic Blockchain. Status: Drawing Board Anticipated Release: n/a
Usability
GUI Wallet 2.0 — Restore from seed words and various usability enhancements — Status: Needs Assessment Anticipated Release: Fall 2020
Mobile App — Native mobile experience for iOS and Android. Status: In Development (Testing) Anticipated Release: Winter 2020
Telegram Integration — Anonymous payments over the Telegram network, bot functionality for groups. Status: Drawing Board Anticipated Release: n/a
Mining
RandomX on ARM — Our 4th PoW algorithm, this will enable tablets, cell phones, and low power devices such as Raspberry Pi to participate in mining. Status: Needs Assessment Anticipated Release: n/a
The economics of mining Epic are extremely compelling for countries that have free or extremely cheap electricity, since anyone with an ordinary PC can mine. Individual people around the world can simply run the miner and earn meaningful money (imagine Venezuela for example), something that has not been possible since the very early days of Bitcoin.
Ecosystem Development
Atomic Swaps — Connecting Epic to other blockchains in a trustless way, starting with ETH so that Epic can trade on DeFi infrastructure such as Uniswap, Kyber, etc. Status: Drawing Board Anticipated Release: n/a
Xenolink Advisor at Epic Cash
From the Community aspect, we have been further developing our community international reach. We have been seeing an increase in interest from South America, China, Russia, Japan, Italy, and the Philippines. We are working on targeting more countries. We truly aim to be a decentralized project that is open to everyone worldwide.
CryptoDiffer team
Great, thank you for your answers, we now can move to community questions part!
Cryptodiffer Community
You have 3 mining algorithms, the question is: how do they not compete with each other? Is there any benefit of mining on the GPU and CPU if someone is mining on the ASIC?
Max Freeman Project Lead at Epic Cash
The block selection is deterministic, so that every 100 blocks, 60% are for RandomX (CPU), 38% for ProgPow (GPU), and 2% for Cuckoo (ASIC) — the policy is flexible so that we can have as many algorithms with any percentages we want. The goal is to make the most decentralized and resilient network possible, and with that in mind we are excited to work on enabling tablets and cell phones to mine, since that opens it up to millions of people that otherwise can’t take part.
Cryptodiffer Community
To Run a project smoothly, Funding is very important, From where does the Funding/revenue come from?
Xenolink Advisor at Epic Cash
Yes, early on this was realized and in order to scale a project funds are indeed needed. Epic Cash did not start with any funding and no ICO and was organically genesis mined with no pre-mine. Epic cash is also a nonprofit community driven project similar to Monero. There is no profit-driven entity in the picture. To overcome the revenue issue Epic Cash setup a development fund tax that decreases 1% every year until 2028 when Epic Cash reaches singularity with Bitcoin emissions. Currently it is at 7.77%. This will help support the scaling of the project.
Cryptodiffer Community
Hi! In your experience working also with MONERO can you please clarify which are those identified problems that EPIC CASH aims to develop and resolve? What’s the main advantage that EPIC CASH has over MONERO? Thank you!
Yoga Dude PR&Marketing at Epic Cash
First, I must admit that I am still a huge fan and HODLer of Monero. That said:
✅ our blockchain is MUCH lighter than Monero’s
✅ our transaction processing speed is much faster
✅ our address-less blockchain is more private
✅ Epic Cash can be mined with CPU (RandomX) GPU (ProgPow) and Cuckoo, whereas Monero migrated to RandomX and currently only mineable with CPU
Cryptodiffer Community
  1. the feature ‘Cut Through’ deletes old data, how is it decided which data will be deletes, and what are the consequences of it for the platform and therefore the users?
  2. On your website I see links to download Epic wallet and mining software for Linux,Windows and MacOs, I am a user of android, is there a version for me, or does it have a release date?
Max Freeman Project Lead at Epic Cash
  1. This is one of the most exciting features of Mimblewimble, which is its extraordinary ability to compress blockchain data. In Bitcoin, the entire history of a coin must be replayed every time it is spent, and comprehensive details are permanently stored in the blockchain. Epic discards spent transaction inputs and consolidates outputs, storing neither addresses or amounts, only a tiny kernel to allow sender and receiver to prove their transaction.
  2. The Vitex mobile app is great for today, and we have a native mobile app for iOS and Android in the works as well.
Cryptodiffer Community
$EPIC Have total Supply of 21,000,000 EPIC , is there any burning plan? Or Buyback program to maintain $EPIC price in the future?
Who is Epic Biggest competitors?
And what’s makes epic better than competitors?
Xenolink Advisor at Epic Cash
We respect the older generation coins like Bitcoin. But we have learned that the supply economics of Bitcoin is very sound. Until today we can witness how the Bitcoin is being adopted institutionally and by retail. We match the 21 million BTC supply economics because it is an inelastic fixed model which makes the long-term economics very sound. To have an elastic model of burning tokens or printing tokens will not have a solid economic future. Take for example the USD which is an inflating supply. In terms of competitors we look at everyone in crypto with respect and also learn from everyone. If we had to compare to other Mimblewimble tech coins, Grin is an inelastic forever inflating supply which in the long term is not sound economics. Beam however is an inelastic model but is formed as a corporation. The fair distribution is not there because of the permanent revenue model setup for them. Epic Cash a non-profit development tax fund model for scaling purposes that will disappear by 2028’s singularity.
Cryptodiffer Community
What your plans in place for global expansion, are you focusing on only market at this time? Or focus on building and developing or getting customers and users, or partnerships?
Yoga Dude PR&Marketing at Epic Cash
Since we are a community project, we have many developers, in addition to the core team.
Our plans for Global expansion are simple — we have advocates in different regions addressing their audiences in their native languages. We are growing organically, by explaining our ideology and usability. The idea is to grow beyond needing a fiat bridge for crypto use, but to rather replace fiat with our borderless, private and fungible crypto so people can use it to get goods and services without using banks.
We are not limiting ourselves to one particular demographic — Epic Cash is a valid solution for the gamers, investors, techie and non techie people, and the unbanked.
Cryptodiffer Community
EPIC confidential coin! Did you have any problems with the regulators? And there will be no problems with listing on centralized exchanges?
Xenolink Advisor at Epic Cash
In terms of structure, we are carefully set up to minimize these concerns. Without a company or investors in the picture, and having raised no funds, there is little scope to attack in terms of securities laws. Bitcoin and Ethereum are widely acknowledged as acceptable, and we follow in their well-established footprints in that respect. Centralized exchanges already trade other privacy coins, so we don’t see this as much of an issue either. In general, decentralized p2p exchange options are more interesting than today’s centralized platforms. They are more censorship resistant, secure, and privacy-protecting. As the technology gets better, they should continue to gain market share and that’s why we’re proud to be partnered with Vitex, whose exchange and mobile app work very well.
Cryptodiffer Community
What are the main utility and real-life usage of the #EPIC As an investor, why should we invest in the #EPIC project as a long-term investment?
Max Freeman Project Lead at Epic Cash
Because our blockchain is so light (only 1.16gb currently, and grows very slowly) it is naturally well suited to become a decentralized mobile money standard because people can run a full node on their phone, guaranteeing the security of their funds. Scalability in Bitcoin requires complicated and compromised workarounds such as Lightning Network and light clients, and these problems are solved in Epic.
With our forthcoming Mobile Mining app, hundreds of millions of cell phones and tablets will be able to easily join the network. People can quickly and cheaply send money to one another, fulfilling the long-envisioned promise of P2P electronic cash.
As an investor, it’s important to ask a few key questions. Bitcoin Standard tokenomics of disinflation and a fixed supply are well proven over a decade now. We follow this model exactly, with a permanently synchronized supply from 2028, and 4 emission halvings from now until then, with our first one in about two weeks. Beyond that, we can apply some simple logical tests. What is more valuable, money that can only be used in some cases (censorable Bitcoin based on a lack of fungibility) or money that can be used universally? (fungible Epic based on always-on privacy by default). Epic is also poised to be a more decentralized and therefore resilient network because of wider participation in mining. Epic is designed to be Bitcoin++ Privacy, Fungibility, Scalability
Cryptodiffer Community
Q1. What are advantages for choosing three mining algorithms RandomX+, ProgPow and CuckAToo31+ ?
Q2. Beam and Grin use MimbleWimble protocol, so what are difference for Epic? All of you will be friends for partners or competitors?
Max Freeman Project Lead at Epic Cash
RandomX and ProgPow are designed to use the entirety of a CPU / GPU’s unique processing capabilities in a way that other types of hardware don’t work as well. You can run RandomX on a GPU but it doesn’t work nearly as well as a much cheaper CPU, for example. Cuckoo is a “memory hard” algorithm that widens the range of companies that can produce the hardware.
Grin and Beam are great projects and we’ve learned a lot from them. We inherited our first codebase from Grin’s excellent Rust design, which is a better language for community participation than C++ that Beam currently uses.
Functionally, Mimblewimble is similar across the 3 coins, with standard Confidential Transactions, CoinJoin, Dandelion++, Schnorr Signatures and other advanced features. Grin is primarily ASIC-targeted, Beam is GPU-targeted, and Epic is multi-hardware.
The biggest differences though are in tokenomics and project structure. Grin has permanent inflation of 60 coins per block with no halvings, which means steady erosion of value over time due to new supply pressure. It also lacks a steady funding model, making future development in jeopardy, particularly as the per coin price falls. Beam has a for-profit model with heavy early inflation and a high developer tax. Epic builds on the strengths of these earlier mimblewimble projects and addresses the parts that could be improved.
Cryptodiffer Community Some privacy coin has scalability issues! How Epic cash will solve scalability issues? Why you choose randomX consensus algorithem?
Xenolink Advisor at Epic Cash
Fungibility means that you can’t distinguish one unit of currency from another, in example Gold. Fungibility has recently become a hot issue as people have been noticing Bitcoins being locked up by exchanges which may of had a nefarious history which are called Tainted Coins. In example coins that have been involved in a hack, darknet market transactions, or even processing coin through a mixer. Today we can already see freshly mined Bitcoins being sold at a premium price to avoid the fungibility problem Bitcoin carries today. Bitcoin can be tracked by chainalysis and is not a fungible cryptocurrency. One of the features that Epic has is privacy with added fungibility, because of Mimblewimble technology, Epic has no addresses recorded and therefore nothing can be tracked by chainalysis. Below I provide a link of an example of what the lack of fungibility is resulting in today with Bitcoin. One of the reasons why we chose the Random X algo. is because of the easy barrier of entry and also to further decentralize the mining. Random X algo can be mined on old computers or laptops. We also have 2 other algos Progpow (GPU), and Cuckoo (ASIC) to create a wider decentralization of mining methods for Epic.
Cryptodiffer Community
I’m a newbie in crypto and blockchain so how will Epic Cash team target and educate people who don’t know about blockchain and crypto?
What is the uniqueness of Epic Cash that cannot be found in other project that´s been released so far ?
Yoga Dude Pr&Marketing at Epic Cash
Actually, while we have our white paper translated into over 30 languages, we are more focused on explaining our uses and advantages rather than cold specs. Our tech is solid, but we not get hung up on pure tech talk which most casual users do not need to or care to understand. As long as our fundamentals and tech are secure and user friendly our primary goal is to educate about use cases and market potential.
The uniqueness of Epic Cash is its amalgamation of “whats good” in other cryptos. We use Mimblewimble for privacy and anonymity. Our blockchain is much lighter than our competitors. We are the only Mimblewimble crypto to use a unique cocktail of mining algorithms allowing to be mined by casual miners with gaming rigs and laptops, while remaining friendly to GPU and CPU farmers.
The “uniqueness” is learning from the mistakes of those who came before us, we evolved and learned, which is why our privacy is better, we are faster, we are fungible, we offer diverse mining and so on. We are the best blend — thats powerful and unique
Cryptodiffer Community
Can you share EPIC’s vision for decentralized finance (DEFI)? What features do EPIC have to support DEFI?
Yoga Dude PR&Marketing at Epic Cash
We view Epic as ideally suited to be the decentralized digital reserve asset of the new Private Internet of Money that’s emerging. At a technology level, atomic swaps can be created to build liquidity bridges so that wrapped Epic tokens (like WBTC, WETH) can trade on other networks as ERC20, BEP2, NEP5, VIP180, Algorand and so on. There is more Bitcoin value locked on Ethereum than in Lightning Network, so we will similarly integrate Epic so that it can trade on networks such as Uniswap, Kyber, and so on.
Longer term, if there is market demand for it, thanks to Scriptless Script functionality our blockchain has, we can build “Confidential Assets” (which Raven, Tari, and Beam are all also working on) that enable people to create tokenized assets in a private way.
Cryptodiffer Community
If you could choose one celebrity to promote Epic-cash, who that would be?
Max Freeman Project Lead at Epic Cash
I am a firm believer that the strength of the project lies in allowing community members to become their own celebrities, if their content is good enough the community will propel them to celebrity status. Organic celebrities with small but loyal following are vastly more beneficial than big name professional shills with inflated but non caring audiences.
I remember the early days of Apple when an enthusiastic dude named Guy Kawasaki became Apple Evangelist, he was literally going around stores that sold Apple and visited user groups and Evangelized his belief in Apple. This guy became a Legend and helped Apple become what it is today.
Epic Cash will have its OWN Celebrities
Cryptodiffer Community
How does $EPIC solve scalability of transactions? Current blockchains face issues with scalability a lot, how does $EPIC creates a solution to it?
Xenolink Advisor at Epic Cash
Epic Cash is utilizing Mimblewimble technology. Besides the privacy & fungibility aspect of the tech. There is the scalability features of it. It is implemented into Epic by transaction cut-through. Which means it allows nodes to remove all intermediate transactions, thus significantly reducing the blockchain size without affecting its validation. Mimblewimble also does not use addresses like a BTC address, and amount of transactions are also not recorded. One problem Monero and Bitcoin are facing now is scalability. It is evident today that data is getting more expensive and that will be a problem in the long run for those coins. Epic is 90% lighter and more scalable compared to Monero and Bitcoin.
Cryptodiffer Community
what are the ways that Epic Cash generates profits/revenue to maintain your project and what is its revenue model ? How can it make benefit win-win to both invester and your project ?
Max Freeman Project Lead at Epic Cash
There is a block subsidy of 7.77% that declines 1.11% per year until 0, where it stays after that. As a nonprofit community effort, this extremely modest amount goes much further than in other projects, which often take 20, 30, even 50+ % of the coin supply. We believe that this ongoing funding model best aligns the long term incentives for all participants and balances the compromises between the ends of the centralized/decentralized spectrum of choices that any project must make.
Cryptodiffer Community
Q1 : What are your major goals to archive in the next 3–4 years?
Q2 : What are your plans to expand and gain more adoption?
Yoga Dude Pr&Marketing at Epic Cash
Max already talked about our technical plans and goals in his roadmap. Allow me to talk more about the non technical 😁
We are aiming for broader reach in the non technical more mainstream community — this is a big challenge but we believe it is doable. By offering simpler ways to mine Epic Cash (with smart phones for example), and by doing more education we will achieve the holy grail of crypto — moving past the fiat bridges and getting Epic Cash to be accepted as means of payment for goods and services. We will accomplish this by working with regional advocacy groups, community interaction, off-line promotional activities and diverse social media targeting.
Cryptodiffer Community
It seems to me that EpicCash will have its first Halving, right? Why a halving so soon?
Is a mobile version feasible?
Max Freeman Project Lead at Epic Cash
Our supply emission catches up to that of Bitcoin’s first 19 years after 8 years in Epic, so that requires more frequent halvings. Today’s block emission is 16, next up are 8, 4, 2, and then finally 0.15625. After that, the supply of Epic and that of BTC stay synchronized until maxing out at 21m coins in 2140.
Today we have a mobile wallet through the Vitex app, a native mobile wallet coming, and are working on mobile mining.
Cryptodiffer Community
What markets will you add after that?
Yoga Dude PR&Marketing at Epic Cash
Well, we are aiming to have ALL markets
Epic Cash in its final iteration will be usable by everyone everywhere regardless of their technical expertise. We are not limiting ourselves to the technocrats, one of our main goals is to help the billions of unbanked. We want everyone to be able to mine, buy, and most of all USE Epic Cash — gamers, farmers, soccer moms, students, retirees, everyone really — even bankers (well once we defeat the banking industry)
We will continue building on the multilingual diversity of our global community adding support and advocacy groups in more countries in more languages.
Epic Cash is More than Money and its for Everyone.
Cryptodiffer Community
Almost, all cryptocurrencies are decentralized & no-one knows who owns that cryptocurrencies ! then also, why Privacy is needed? hats the advantages of Private coins?
Max Freeman Project Lead at Epic Cash
With a public transparent blockchain such as Bitcoin, you are permanently posting a detailed history of your money movements open for anyone to see (not just legitimate authorities, either!) — It would be considered crazy to post your credit card or bank statements to Twitter, but that’s what is happening every time you send a transaction that is not private. This excellent video from community contributor Spencer Lambert https://www.youtube.com/watch?v=0blbfmvCq\_4 explains better than I can.
Privacy is not just for criminals, it’s for everyone. Do you want your landlord to increase the rent when he sees that you get a raise? Your insurance company to raise your healthcare costs because they see you buying too much ice cream? If you’re a business, do you want your employees to see how much money their coworkers make? Do you want your competitors to trace your supplier and customer relationships? Of course not. By privacy being default for everyone, cryptocurrency can be used in a much wider range of situations without unacceptable compromises.
Cryptodiffer Community
What are the main utility and real-life usage of the #EPIC As an investor, why should we invest in the #EPIC project as a long-term investment?
Xenolink Advisor at Epic Cash
Epic Cash can be used as a Private and Fungible store of value, medium of exchange, and unit of account. As Epic Cash grows and becomes adopted it can be compared to how Bitcoin and Monero is used and adopted as well. As Epic is adopted by the masses, it can be accepted as a medium of exchange for store owners and as fungible payments without the worry of having money that is tainted. Epic Cash as a store of value may be a good long term aspect of investment to consider. Epic Cash carries an inelastic fixed supply economic model of 21 million coins. There will be 5 halvings which this month of June will be our first halving of epic. From a block reward of 16 Epic reduced to 8. If we look at BTC’s price action and history of their halvings it has been proven and show that there has been an increase in value due to the scarcity and from halvings a reduction of # of BTC’s mined per block. An inelastic supply model like Bitcoin provides proof of the circulating supply compared to the total supply by the history of it’s Price action which is evident in long term charts since the birth of Bitcoin. EPIC Plans to have 5 halvings before the year 2028 to match the emissions of Bitcoin which we call the singularity event. Below is a chart displaying our halvings model approaching singularity. Once bitcoin and cryptocurrency becomes adopted mainstream, the fungibility problem will be more noticed by the general public. Privacy coins and the features of fungibility/scalability will most likely be sought over. Right now a majority of people believe that all cryptocurrency is fungible. However, that is not true. We can already see Chainalysis confirming that they can trace and track and even for other well-known privacy coins today such as Z-Cash.
Cryptodiffer Community
  1. You aim to reach support from a global community, what are your plans to get spanish speakers involved into Epic Cash? And emerging markets like the african
  2. How am I secure I won’t be affected by receiving tainted money?
Max Freeman Project Lead at Epic Cash
Native speakers from our community are working to raise awareness in key markets such as mining in Argentina and Venezuela for Spanish (Roberto Navarro called Epic “the holy grail of cryptocurrency” and Ethiopia and certain North African countries that have the lowest electricity costs in the world. Remittances between USA and Latin American countries are expensive and slow, so Epic is also perfect for people to send money back home as well.
Cryptodiffer Community
Do EPICs in 2020 focus more on research and coding, or on sales and implementation?
Yoga Dude PR&Marketing at Epic Cash
We will definitely continue to work on research and coding, with emphasis on improved accessibility (especially via smartphones) usability, security and privacy.
In terms of financial infrastructure will continuing to add exchanges both KYC and non KYC.
Big part of our plans is in ongoing Marketing and PR outreach. The idea is to make Epic Cash a viral sensation of sorts. If we can get Epic Cash adopters to spread the word and tell their family, coworkers and friends about Epic Cash — there will be no stopping us and to help that happen we have a growing army of content creators, and supporters.
Everyone with skin in the game gets the benefit of advancing the cause.
Folks also, this isn’t an answer to the question but an example of a real-world Epic Cash content —
https://www.youtube.com/watch?v=XtAVEqKGgqY
a challenge from one of our content creators to beat his 21 pull ups and get 100 epics! This has not been claimed yet — people need to step up 🙂 and to help that I will match another 100 Epic Cash to the first person to beat this
Cryptodiffer Community
I was watching some videos explaining how to send and receive transactions in EpicCash, which consists of ports and sending links, my question is why this is so, which, for now, looks complex?
Let’s talk about the economic model, can EpicCash comply with the concept of value reserve?
Max Freeman Project Lead at Epic Cash
In V3, which is coming later this summer, Epic can be sent over Tor, which eliminates this issue of port opening, even though using tools like ngrok.io, it’s not necessarily as painful as directly configuring the router ports. Early Lightning Network had this issue as well and it’s something we have a plan to address via research into non-interactive transactions. “Fire and Forget” payments to an address, as people are used to in Bitcoin, is coming to Epic and we’re excited to develop functionality that other advanced mimblewimble coins don’t yet have. We are committed to constant improvement in usability and utility, to make our money system the ease of use leader.
We are involved in the project (anyone can join the Freeman Family) because we believe that simply by choosing to use a form of money that better aligns with our ideals, that we can make a positive change in the world. Some of my thoughts about how I got involved are here: https://medium.com/epic-cash/the-freeman-family-e3b9c3b3f166
Max Freeman Project Lead at Epic Cash
Huge thanks to our friends Maks and Vladyslav, we welcome everyone to come say hi at one of our friendly communities. It is extremely early in this journey, our market cap is only 0.5m right now, whereas the 3 other mimblewimble coins are at $20m, $30m and $100m respectively. Epic is a historic opportunity to follow in the footsteps of legends such as Bitcoin and Monero, and we hope to become the first Top 5 privacy coin project.
Xenolink Advisor at Epic Cash
Would like to Thank the Cryptodiffer Team and the Cryptodiffer community for hosting us and also engaging with us to learn more about Epic. If anyone else has more questions and wants to know more about EPIC , can find us at our telegram channel at https://t.me/EpicCash .
Yoga Dude Pr&Marketing at Epic Cash
Thank you, CryptoDiffer Team, and this wonderful Community!!!
Cryptodiffer TEAM
Thank you everyone for taking your time and asking great questions
Thank you for your time, it was an insightful session
Spread the love
submitted by EpicCashFrodo to epiccash [link] [comments]

Building Ergo: Storage rent

We’ve designed Ergo with long-term economic sustainability in mind, and storage rent is one of the ways we’re ensuring miners stay profitable well into the future. One community member, Robert, describes this function as ‘on-chain garbage collection’ that reduces the problem of blockchain bloat – and even makes it profitable.
The 2020 block reward reduction will probably be the most important halving Bitcoin ever experiences. This is the point where the narrative of programmatic scarcity and digital gold will truly be proven, in the context of the sharpest economic downturn in living memory. In previous halvings, Bitcoin has still been in its infancy, a niche experiment. Future halvings will confirm the principle. But this one is the watershed.
Looking ahead, though, what happens in 20 or 30 years, when block rewards have fallen so far that miners have to rely on tx fees and potentially other sources of revenue? Will Bitcoin be sustainable? What will be the impact on the ecosystem?
The simple answer is that we don’t know.
Mining rewards are a key feature in maintaining the security of proof-of-work blockchains like Bitcoin and Ergo. And so, while we have deliberately kept many of Bitcoin’s tried and tested features, we have updated this one to give miners a boost when block rewards have fallen to zero.
Lost coins
Digital scarcity is an important feature of Ergo. Like Bitcoin, ERG are designed to be a finite resource and long-term store of value. We do not agree with the principle of infinite inflation.
And yet, this has to be balanced against the needs to pay miners to secure the blockchain and process transactions. Without adequate compensation for miners, there is no viable blockchain at all. Ergo approaches this by slowly recycling lost coins, in a feature we call ‘Storage rent’.
Studies suggest that as many as 4 million BTC may have been lost forever. These are coins that were mined in the early days of Bitcoin and stored on hard drives that were subsequently thrown away or destroyed because the owners forgot about them or thought they were worthless, as well as coins in addresses for which the private keys have been lost. (And, of course, there’s Satoshi’s estimated holdings of 1 million BTC, which may never move.)
Where coins have genuinely been permanently taken out of circulation in this way, it makes sense to have a mechanism to recover them and put them back into the blockchain economy. That way, we can preserve digital scarcity without unnecessarily accelerating it. In other words, by attempting to stick to the intended algorithmic supply for any given point in time.
Ergo’s halving schedule is faster than Bitcoin’s. Block rewards start at 75 ERG, and decrease steadily after the first two years. There is no ‘long tail’ of emission, and after eight years block rewards will fall to zero. After that, total supply will be fixed. The number of ERG in existence will never be more than 97,739,925.
Storage fees
From that point, however, miners will need further incentives to secure the network. Miners have ongoing costs in terms of bandwidth and storage, and in cases where coins are simply left for years, there is typically no charge for reflecting the value of securing them. The tx fee that is paid up-front in Bitcoin is the only charge ever made for storing those coins.
In Ergo, in addition to transaction fees, miners will also be able to collect storage rent fees on UTXOs that have not been moved for four years or more.
Fees will be deducted slowly, over time – the unmoved UTXOs will not simply be appropriated by miners. Anyone who wants to avoid this simply needs to move their balances once every four years, which is not an onerous requirement for helping incentivise miners and avoiding the deflationary consequences of lost coins. You can read more about how fees will be levied in this paper.
In this way, Ergo seeks to ensure a balance between maintaining digital scarcity, on the one hand, and giving miners long-term incentives to secure the blockchain, on the other – long past the point where new coins have ceased to be released.
Share post:
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Ergoplatform.org
submitted by kushti to ergoplatformorg [link] [comments]

SafeCoins Block Reward Reduction Has Happened!

SafeCoins Block Reward Reduction Has Happened!
https://preview.redd.it/ryqmm8vuu1451.png?width=1012&format=png&auto=webp&s=a57a7d99cad7acf3a0eec7355aa98bc0a4ce56f4
SafeCoins block rewards has now dropped from 4 SafeCoins to 3 SafeCoins per block. We would like to thank our longtime SafeCoin Community as well as everyone who is just getting started for their ongoing support
When SafeCoin launched, the block reward was 128 SafeCoins. This may seem a lot for a coin with a max supply of 36 million coins, but safeCoin was launched with an aggressive halving schedule designed to quickly approach bitcoin emission levels. As a new project just starting out we felt this was fair to the early adopters who put faith in us. In spring of 2018 Crypto was dominated by uncertainty and fear, Projects were launching as quickly as they were vanishing. It was at that time that SafeCoin found its way to the public, forcing everyone involved to make a giant leap of fate that the SafeCoin project would maintain the values implied by its name. The following 2 Years would prove the old saying "stay the course", as both the Community as well as the underlying technology kept evolving towards the present.
Now, about 1.2 million Blocks into the present and with the release of the Magna Carta Update, the SafeCoin Project takes another giant step forward. Our emissions are finally stable, and in the coming days we will release articles pertaining to the many advancements in our latest SafeCoin release, as well as how we are going to utilise them for safety, security, growth and adoption.
Stay Safe!
...................................................
SafeCoin: https://safecoin.org
SafeChat: https://safe.chat
SafeNodes: https://safenodes.org/
SafeWallet: https://safecoin.org/wallets/
Exchange: https://safe.trade/
Twitter SafeCoin: https://twitter.com/SafeCoins
Twitter Safe.Trade: https://twitter.com/safetradeex
Medium: https://medium.com/@safecoin/
YouTube: https://www.youtube.com/channel/UCaQmjj6Z_5z5uk49Kp-3RZw
Telegram: https://t.me/SafeCoinEN
Reddit: https://www.reddit.com/SafeCoins/
Discord: https://discord.gg/vQgYGJz
CoinMarketCap: https://coinmarketcap.com/currencies/safecoin/
Github: https://github.com/Fair-Exchange/safecoin
submitted by Swagga82 to SafeCoins [link] [comments]

Building Ergo: Storage rent

We’ve designed Ergo with long-term economic sustainability in mind, and storage rent is one of the ways we’re ensuring miners stay profitable well into the future. One community member, Robert, describes this function as ‘on-chain garbage collection’ that reduces the problem of blockchain bloat – and even makes it profitable.
The 2020 block reward reduction will probably be the most important halving Bitcoin ever experiences. This is the point where the narrative of programmatic scarcity and digital gold will truly be proven, in the context of the sharpest economic downturn in living memory. In previous halvings, Bitcoin has still been in its infancy, a niche experiment. Future halvings will confirm the principle. But this one is the watershed.
Looking ahead, though, what happens in 20 or 30 years, when block rewards have fallen so far that miners have to rely on tx fees and potentially other sources of revenue? Will Bitcoin be sustainable? What will be the impact on the ecosystem?
The simple answer is that we don’t know.
Mining rewards are a key feature in maintaining the security of proof-of-work blockchains like Bitcoin and Ergo. And so, while we have deliberately kept many of Bitcoin’s tried and tested features, we have updated this one to give miners a boost when block rewards have fallen to zero.

Lost coins

Digital scarcity is an important feature of Ergo. Like Bitcoin, ERG are designed to be a finite resource and long-term store of value. We do not agree with the principle of infinite inflation.
And yet, this has to be balanced against the needs to pay miners to secure the blockchain and process transactions. Without adequate compensation for miners, there is no viable blockchain at all. Ergo approaches this by slowly recycling lost coins, in a feature we call ‘Storage rent’.
Studies suggest that as many as 4 million BTC may have been lost forever. These are coins that were mined in the early days of Bitcoin and stored on hard drives that were subsequently thrown away or destroyed because the owners forgot about them or thought they were worthless, as well as coins in addresses for which the private keys have been lost. (And, of course, there’s Satoshi’s estimated holdings of 1 million BTC, which may never move.)
Where coins have genuinely been permanently taken out of circulation in this way, it makes sense to have a mechanism to recover them and put them back into the blockchain economy. That way, we can preserve digital scarcity without unnecessarily accelerating it. In other words, by attempting to stick to the intended algorithmic supply for any given point in time.
Ergo’s halving schedule is faster than Bitcoin’s. Block rewards start at 75 ERG, and decrease steadily after the first two years. There is no ‘long tail’ of emission, and after eight years block rewards will fall to zero. After that, total supply will be fixed. The number of ERG in existence will never be more than 97,739,925.

Storage fees

From that point, however, miners will need further incentives to secure the network. Miners have ongoing costs in terms of bandwidth and storage, and in cases where coins are simply left for years, there is typically no charge for reflecting the value of securing them. The tx fee that is paid up-front in Bitcoin is the only charge ever made for storing those coins.
In Ergo, in addition to transaction fees, miners will also be able to collect storage rent fees on UTXOs that have not been moved for four years or more.
Fees will be deducted slowly, over time – the unmoved UTXOs will not simply be appropriated by miners. Anyone who wants to avoid this simply needs to move their balances once every four years, which is not an onerous requirement for helping incentivise miners and avoiding the deflationary consequences of lost coins. You can read more about how fees will be levied in this paper.
In this way, Ergo seeks to ensure a balance between maintaining digital scarcity, on the one hand, and giving miners long-term incentives to secure the blockchain, on the other – long past the point where new coins have ceased to be released.
submitted by eleanorcwhite to btc [link] [comments]

Building Ergo: Storage rent

We’ve designed Ergo with long-term economic sustainability in mind, and storage rent is one of the ways we’re ensuring miners stay profitable well into the future. One community member, Robert, describes this function as ‘on-chain garbage collection’ that reduces the problem of blockchain bloat – and even makes it profitable.
The 2020 block reward reduction will probably be the most important halving Bitcoin ever experiences. This is the point where the narrative of programmatic scarcity and digital gold will truly be proven, in the context of the sharpest economic downturn in living memory. In previous halvings, Bitcoin has still been in its infancy, a niche experiment. Future halvings will confirm the principle. But this one is the watershed.
Looking ahead, though, what happens in 20 or 30 years, when block rewards have fallen so far that miners have to rely on tx fees and potentially other sources of revenue? Will Bitcoin be sustainable? What will be the impact on the ecosystem?
The simple answer is that we don’t know.
Mining rewards are a key feature in maintaining the security of proof-of-work blockchains like Bitcoin and Ergo. And so, while we have deliberately kept many of Bitcoin’s tried and tested features, we have updated this one to give miners a boost when block rewards have fallen to zero.
Lost coins
Digital scarcity is an important feature of Ergo. Like Bitcoin, ERG are designed to be a finite resource and long-term store of value. We do not agree with the principle of infinite inflation.
And yet, this has to be balanced against the needs to pay miners to secure the blockchain and process transactions. Without adequate compensation for miners, there is no viable blockchain at all. Ergo approaches this by slowly recycling lost coins, in a feature we call ‘Storage rent’.
Studies suggest that as many as 4 million BTC may have been lost forever. These are coins that were mined in the early days of Bitcoin and stored on hard drives that were subsequently thrown away or destroyed because the owners forgot about them or thought they were worthless, as well as coins in addresses for which the private keys have been lost. (And, of course, there’s Satoshi’s estimated holdings of 1 million BTC, which may never move.)
Where coins have genuinely been permanently taken out of circulation in this way, it makes sense to have a mechanism to recover them and put them back into the blockchain economy. That way, we can preserve digital scarcity without unnecessarily accelerating it. In other words, by attempting to stick to the intended algorithmic supply for any given point in time.
Ergo’s halving schedule is faster than Bitcoin’s. Block rewards start at 75 ERG, and decrease steadily after the first two years. There is no ‘long tail’ of emission, and after eight years block rewards will fall to zero. After that, total supply will be fixed. The number of ERG in existence will never be more than 97,739,925.
Storage fees
From that point, however, miners will need further incentives to secure the network. Miners have ongoing costs in terms of bandwidth and storage, and in cases where coins are simply left for years, there is typically no charge for reflecting the value of securing them. The tx fee that is paid up-front in Bitcoin is the only charge ever made for storing those coins.
In Ergo, in addition to transaction fees, miners will also be able to collect storage rent fees on UTXOs that have not been moved for four years or more.
Fees will be deducted slowly, over time – the unmoved UTXOs will not simply be appropriated by miners. Anyone who wants to avoid this simply needs to move their balances once every four years, which is not an onerous requirement for helping incentivise miners and avoiding the deflationary consequences of lost coins. You can read more about how fees will be levied in this paper.
In this way, Ergo seeks to ensure a balance between maintaining digital scarcity, on the one hand, and giving miners long-term incentives to secure the blockchain, on the other – long past the point where new coins have ceased to be released.
submitted by Guilty_Pea to CryptoMarkets [link] [comments]

Main Reasons Why Bitcoin Improves Investment Portfolio Upside?

Main Reasons Why Bitcoin Improves Investment Portfolio Upside?
https://preview.redd.it/e78c38x9y5e51.jpg?width=2400&format=pjpg&auto=webp&s=3990f81f92a6dcf4c837c5e9ce7f14d4e0c74b4a
Investing in cryptocurrency seems to be the most significant trend. While so many digital currencies are making their way into the market, Bitcoin continues to reign supreme. Undoubtedly, Bitcoin is one of the oldest and fastest-growing cryptocurrencies that has a promising future. If you also have an interest in investing in cryptocurrencies, then you must consider Bitcoin. The perpetual growth which it has shown and the sustainability of it, make it a lucrative choice. In addition to this, there are other reasons why choosing Bitcoin will be the best move.
Exploring Why Investment In Bitcoin Is Going To Give Your Portfolio a Big Boost:
1. It Offers Monetary Value- One of the reasons why Bitcoin has piqued the interest of people is because Bitcoin is considered to be the digital gold. The kind of value appreciation which Bitcoin has received over the years has made it the apple of the eyes of the investors. As per VanEck, Bitcoin has monetary value and no intrinsic value.
2. Lower Correlation With a Traditional Asset- Another reason why Bitcoin may increase the portfolio diversification is because of lesser correlation with traditional assets like gold and bonds.
3. Scarcity Led To The Success- Well, it might sound a bit odd but, limiting the supply of Bitcoin in the market marks the reason for its success. Bitcoin halvings mean cutting down the Block reward by 50%, which limits the availability of Bitcoin production, and this is programmed to take place every four years. It eventually led to a rise in the price of Bitcoin. The next Bitcoin having is scheduled for May 2020.
4. Growing Adoption — Another reason that leads to making Bitcoin a successful cryptocurrency that will also enhance your investment portfolio is the growing adoption. Bitcoin witnesses transactions exceed 400,000 permissionless transactions a day. This whooping rise clearly shows that there is an increasing demand for Bitcoin, and more and more people are investing in this.
If you are also willing to become a wizard of investment in cryptocurrency and are looking for the best choice, then Bitcoin should be a part of your portfolio.
However, before you head for the Bitcoin journey, it becomes essential that you must know cryptocurrency exchange, its trading and Blockchain. Blockchain is the platform that enables cryptocurrency transaction and hence, knowing these fields can make you invest wisely.
Conclusion- Choosing the right Blockchain course becomes imperative. Blockchain Council offers Blockchain certification and cryptocurrency certification. After completing these courses, you would be able to make the right investment. Moreover, if you wish to make a career as Blockchain professional or become a cryptocurrency trader, Blockchain training and cryptocurrency certification is going to help you with this.
The future is going to revolve around these technologies. Slowly, Blockchain and cryptocurrency are becoming a part of mainstream business, as many nations begin to invest mainly in cryptocurrency and Blockchain development, the demand for Blockchain developers who can leverage this technology in the real world is going to increase, and if you wish to become a Blockchain Expert in this domain, Blockchain Course is a must. For more information connect with Blockchain Council today.
submitted by Blockchain_org to BlockchainStartups [link] [comments]

2020 Will Bring Record Highs for Crypto Assets Despite Pessimism


The emotions in the crypto community are in the range from mild boredom on the positive side to apathy and depression on the other extreme. Despite the gloomy background, I believe 2020 will be one of the best years in the history of crypto assets bringing record highs.
Here are the reasons why…
The broader economy
We live in extraordinary times. Central banks are determined to avoid a recession at all costs by providing liquidity and cutting rates which creates a speculative investment environment. The low interest rate are pumping the valuations of almost any asset class and are also making money managers climb up the risk ladder in search of a meaningful return. Since government bonds don’t yield anything, investors need to buy corporate debt, the ones who previously bought corporate bonds are now into stocks, the stocks loving investors have moved capital to private equity and venture capital etc.
The FED balance sheet jumped $370 billion since September in a new program which is “not QE”. They also cut the rates 3 times this year fighting against a falling stock market and a “potential global slowdown” due to the trade wars and Brexit. As a result we have fresh all time highs in all major US stock indices.
Germany is hovering around a recession, avoiding it technically with a dismal 0.1% growth in the 3rd quarter of 2019. At the same time the DAX index was only 1.3% short of making a new all time high this month.
Even Greece that was on the verge of dropping out of the eurozone four years ago, managed to issue government debt at a negative rate this year.
The cost for avoiding a recession creates a distortion in the valuation of all assets. How do you value anything when interest rates are negative? For great insights on the topic read Howard Marks’ memo on the “mysterious” negative interest rates.
This search for return will drive more people towards riskier asset classes like growth stocks, venture capital and eventually the luring asymmetric bet of crypto assets. "Risk on" state of mind is what crypto needs as the whole asset class (even bitcoin) is perceived as very risky.
US election year
Trump will do anything to keep the stock market and the economy going in 2020. The argument is short but compelling.
He has been very vocal about the new highs and didn’t miss the chance to praise himself for the huge 2019 stock returns. He will likely not do anything that will blow the positive investor sentiment.
This is another tail wind for risk prone investor behaviour in 2020 which will favour crypto assets.
The halving narrative
Bitcoin’s block reward halving is scheduled to occur in mid May 2020. It will bring the daily production from 1800 down to 900 coins per day. This will also cut its annual inflation in half to less than 1.8%. While being twice less powerful than the previous having in 2016, this production cut is still going to influence the price. As a self fulfilling prophecy or a supply-demand result, both previous halvings were followed by an upward price spiral that resulted in a bubble and a blow off top. This is relationship is difficult to ignore and if there is a favourable "risk on” environment in 2020 there is a good chance it will happen again. It may also come faster as investors will try to front run it.
Also, this time we have halving events in the two major forks of bitcoin which did not exist back in 2016 - BCH and BSV. Despite being controversial, they are still among the top 10 largest crypto asset. Their supply cut and potential price rise may help feed the whole “bitcoin halving” narrative and create an upward price spiral for the whole sector.
The latest example of a halving was in litecoin this year and it had a very distinct price effect.
It’s been a while since the last bubble
It’s been exactly 2 years after the top of the previous bubble. Most alts are over 90% down from their all time highs. That is a lot of damage for the speculative investor who came in 2017 and 2018.
Also the lows in most coins were set one year ago and have not been broken down despite prevalent pessimism. This has been a painful environment for anybody looking for a quick buck.
There is also a widespread apathy and pessimism among the crypto community with even hardcore believers changing their forecasts to mediocre 2020.
After 2 years and lots of assets down more than 90% from ATH it seems that most of the coins are held by very strong hands. Therefore downward pressure is limited and if it occurs it would be mainly driven by short term speculators.
Tech development
The hot word of 2016 was “blockchain”. The whole world got excited about it in 2017. 2019 is the year of DeFi.
In case bitcoin gets close to $20 000 again the “late" money will flood once again to smaller crypto assets seeking higher returns. If/when bitcoin’s blocks get full and transactions become expensive the old narrative of “bitcoin doesn’t scale” would become valid again and this would spread money to BCH, BSV, ETH and others.
Another potential narrative that exists today is the “decentralised finance” - exchanges, derivatives, stablecoins, borrowing, lending all that infrastructure got far more sophisticated since the last bubble. Apart from DeFi projects tokens, Ethereum is also poised to be one of the top beneficiaries of this trend as it hosts most of the DeFI activities. However the "Ethereum doesn’t scale" narrative is also valid so a lot of money could spill over to the competition in the smart contract space.
It’s been more than 2 years since the scaling problems became obvious and a lot of projects that specialised in that domain are up and running. Others are at the final stages of being launched. What would be a better test than a real world influx of new users and apps that will try to fill the capacity. The process of finding a proper scaling pathway will be pushed forward in case of another bubble.
Conclusion
That scenario will change in case of a global recession that brings the “risk off” attitude. Then assets will fall into a negative price spiral and investors will be looking to preserve their capital by fleeing to “safer” assets. Although such a recession is inevitable at some point, it seems that central banks have been very good at avoiding it by kicking the can down the road. If they succeed again in 2020, get ready for an explosive crypto year. However, do not assume this run will be the same as 2017. It depends much on the global economy and investors’ risk appetite and it may be cut off earlier and not result in a full blown bubble like the one from 2017. The sensible investor needs to be cautious and plan for the short run in this environment.
submitted by bbelev to BitcoinMarkets [link] [comments]

Building Ergo: Storage rent

We’ve designed Ergo with long-term economic sustainability in mind, and storage rent is one of the ways we’re ensuring miners stay profitable well into the future. One community member, Robert, describes this function as ‘on-chain garbage collection’ that reduces the problem of blockchain bloat – and even makes it profitable.
The 2020 block reward reduction will probably be the most important halving Bitcoin ever experiences. This is the point where the narrative of programmatic scarcity and digital gold will truly be proven, in the context of the sharpest economic downturn in living memory. In previous halvings, Bitcoin has still been in its infancy, a niche experiment. Future halvings will confirm the principle. But this one is the watershed.
Looking ahead, though, what happens in 20 or 30 years, when block rewards have fallen so far that miners have to rely on tx fees and potentially other sources of revenue? Will Bitcoin be sustainable? What will be the impact on the ecosystem?
The simple answer is that we don’t know.
Mining rewards are a key feature in maintaining the security of proof-of-work blockchains like Bitcoin and Ergo. And so, while we have deliberately kept many of Bitcoin’s tried and tested features, we have updated this one to give miners a boost when block rewards have fallen to zero.
Lost coins
Digital scarcity is an important feature of Ergo. Like Bitcoin, ERG are designed to be a finite resource and long-term store of value. We do not agree with the principle of infinite inflation.
And yet, this has to be balanced against the needs to pay miners to secure the blockchain and process transactions. Without adequate compensation for miners, there is no viable blockchain at all. Ergo approaches this by slowly recycling lost coins, in a feature we call ‘Storage rent’.
Studies suggest that as many as 4 million BTC may have been lost forever. These are coins that were mined in the early days of Bitcoin and stored on hard drives that were subsequently thrown away or destroyed because the owners forgot about them or thought they were worthless, as well as coins in addresses for which the private keys have been lost. (And, of course, there’s Satoshi’s estimated holdings of 1 million BTC, which may never move.)
Where coins have genuinely been permanently taken out of circulation in this way, it makes sense to have a mechanism to recover them and put them back into the blockchain economy. That way, we can preserve digital scarcity without unnecessarily accelerating it. In other words, by attempting to stick to the intended algorithmic supply for any given point in time.
Ergo’s halving schedule is faster than Bitcoin’s. Block rewards start at 75 ERG, and decrease steadily after the first two years. There is no ‘long tail’ of emission, and after eight years block rewards will fall to zero. After that, total supply will be fixed. The number of ERG in existence will never be more than 97,739,925.
Storage fees
From that point, however, miners will need further incentives to secure the network. Miners have ongoing costs in terms of bandwidth and storage, and in cases where coins are simply left for years, there is typically no charge for reflecting the value of securing them. The tx fee that is paid up-front in Bitcoin is the only charge ever made for storing those coins.
In Ergo, in addition to transaction fees, miners will also be able to collect storage rent fees on UTXOs that have not been moved for four years or more.
Fees will be deducted slowly, over time – the unmoved UTXOs will not simply be appropriated by miners. Anyone who wants to avoid this simply needs to move their balances once every four years, which is not an onerous requirement for helping incentivise miners and avoiding the deflationary consequences of lost coins. You can read more about how fees will be levied in this paper.
In this way, Ergo seeks to ensure a balance between maintaining digital scarcity, on the one hand, and giving miners long-term incentives to secure the blockchain, on the other – long past the point where new coins have ceased to be released.
submitted by eleanorcwhite to CryptoCurrencies [link] [comments]

What You Need to Know about Bitcoin Halving

What You Need to Know about Bitcoin Halving

https://preview.redd.it/nd48ro4w7at41.jpg?width=1280&format=pjpg&auto=webp&s=3d4d9af7064c9abef5451e2119dcf710a0ea543b
Sometime in May of this year, Bitcoin (BTC) is expected to have its “third halving” at block 630,000.
What is Bitcoin halving and what are its implications in the industry?
For starters, Bitcoin halving is a pre-programmed event where the number of Bitcoin rewards per block will be literally halved or divided by two. Meaning the present block reward of 12.5 BTC is expected to drop to 6.25 BTC per block.
Each block is a permanent store of records. It is composed of records of all recent transactions in the Bitcoin network. A block is more likely compared to a ledger or a record book, and each time a block transaction is completed, it gives way to another block, thus “chaining” them together and creating a decentralized ledger.
As of writing, the current blocks mined are around 626,344 The third halving is expected to take place around the middle of May, between 12th to the 24th of May, when the network hits its 630,000th block.
Bitcoin was first launched in 2009 and had a block subsidy of 50 BTC. In November 2012, the first Bitcoin halving commenced and reduced the 50 BTC subsidy to 25 BTC. It further dropped on the second halving in 2016 by 12.5 BTC per block.
Why does Bitcoin cut its block subsidy by half?
Bitcoin has a total fixed supply of 21 million. At present, almost 18.3 million bitcoins were minted. This means that the number of bitcoins found per block will be scarcer, and doing a Bitcoin halving reward ensures that the total supply will reach 21 million in time. To moderate the rate of the issuance of new bitcoins, it reduces the amount of subsidy into 50% every 210,000 blocks, which happen every four years.
With this halving, the miners or the nodes that maintain the bitcoin network will create fewer new Bitcoins. This doesn’t necessarily mean that the miners’ revenue will be reduced by half. Though it doesn’t rule out this possibility, the reduction refers to the number of BTC produced and not the value of BTC measured by fiat currencies.
But why bitcoin investors are excited about the upcoming third halving?
State-issued currencies rely on tough political and economic processes. Their amount and value depend on the economic growth and stability. This is totally different from Bitcoin, which already has an amount and inflation supply schedule that is definite and fixed.
The prearranged number and schedule of BTC in the market is the unique factor of Bitcoins. This makes BTC technically scarce. Its current price and function influence its market value. Though the amount of BTC entering the system will be reduced, the demand might possibly stay the same or even higher, thus resulting in the probability of a BTC price increase. There is also the possibility of new market entrants, which might create more demand for buying BTC.
No one knows what’s about to happen after the third Bitcoin halving. As the event draws closer, BTC might be more scarce. The value of BTC is volatile around and after the Bitcoin halving. A price increase after the halving is also not a total conclusion, though the previous two halving in 2012 and 2016 proved to have a significant increase in BTC prices.
There are a lot of speculations on how this third halving would affect the BTC price as many believe that this upcoming event will still lead to an eventual increase in BTC. Thus, more earnings for its users. Another way users can earn BTC is through the Swipe Visa card rewards program available for users across Europe.
---
Stay up-to-date with all the latest news from Swipe
Website: https://swipe.io
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submitted by SwipeWallet to Swipe_io [link] [comments]

Being smarter about Tezos' inflation rate

Tezos' current inflation rate is ~80 XTZ per 1 min block or a ~5.51% inflation rate if this Medium post is correct.
https://medium.com/cryptium/did-they-pull-the-5-51-out-of-their-oven-understanding-inflation-in-the-tezos-protocol-13493829a533

Initially, I thought that a 5.5% inflation rate would be economically sound for a cryptocurrency, but I am now beginning to have my doubts. The reason why is because the entire cryptocurrency space is reliant on Bitcoin itself. With bitcoin's inflation rate halving every 4 years and all altcoins having a higher supply PLUS higher inflation rate, it seems self-evident that no coins may beat bitcoin in the long run. This is a fact that I may be able to live with. However, I think having a higher inflation rate than bitcoin will nearly guarantee this outcome. The coin essentially has no chance to compete, which is a travesty considering the technical merits, delivery, and functionality of tezos.
Having been in the space since early 2013, I've had quite a bit of time to see coins come and go. Or have novel ideas come and pass. Taking ZCash for example, it's a novel idea but it's trading ratio to BTC has always gone down. When you look at Zcash's inflation rate in relation to BTC, you quickly see why. ZCash has the same inflation schedule as BTC but it launched much later. This means that ZCash's inflation will always be much higher than bitcoins. It has no chance of surivial because there is zero incentive for smart investors or traders to purchase it instead of bitcoin (aside from a privacy but we all know real privacy users use Monero). Sure, it might pump and dump like every other altcoin, but I'm talking about real adoption. Real competition from an economical perspective.
If Tezos was a POW coin, I could see why a 5.5% inflation rate would be needed. A lot of electricity is being used to secure the network and people have bills to pay. However, Tezos is POS and essentially mints tokens at a very minimal cost. It takes very little actual resources to mint these coins and the reward should reflect that in my opinion. Plus, tezos also mints rewards to dev teams for amendments (which is absolutely amazing).
I write this to have a serious conversation about this topic. Can we perhaps have an update to tezo's economics by lowering it's inflation rate, voted on by the people? Perhaps a 2-2.25% inflation rate would have better economics for this coin.
As a sidenote, please remember that cryptocurrency has many novel facets to it and all are equally important; game theory, economics, technology, etc. All areas need to be maximized in order to be competitive in this space, including the economics of this coin.
submitted by CryptoRambo7 to tezos [link] [comments]

People said a fixed schedule for maxblocksize increase is bad. The halving schedule for block subsidy was fixed and unilaterally decided, and arguably more important than maxblocksize, yet nobody questions that.

submitted by imaginary_username to bitcoinxt [link] [comments]

2020 Will Bring Record Highs for Crypto Assets Despite Pessimism

The emotions in the crypto community are in the range from mild boredom on the positive side to apathy and depression on the other extreme. Despite the gloomy background, I believe 2020 will be one of the best years in the history of crypto assets bringing record highs.
Here are the reasons why…
The broader economy
We live in extraordinary times. Central banks are determined to avoid a recession at all costs by providing liquidity and cutting rates which creates a speculative investment environment. The low interest rate are pumping the valuations of almost any asset class and are also making money managers climb up the risk ladder in search of a meaningful return. Since government bonds don’t yield anything, investors need to buy corporate debt, the ones who previously bought corporate bonds are now into stocks, the stocks loving investors have moved capital to private equity and venture capital etc.
The FED balance sheet jumped $370 billion since September in a new program which is “not QE”. They also cut the rates 3 times this year fighting against a falling stock market and a “potential global slowdown” due to the trade wars and Brexit. As a result we have fresh all time highs in all major US stock indices.
Germany is hovering around a recession, avoiding it technically with a dismal 0.1% growth in the 3rd quarter of 2019. At the same time the DAX index was only 1.3% short of making a new all time high this month.
Even Greece that was on the verge of dropping out of the eurozone four years ago, managed to issue government debt at a negative rate this year.
The cost for avoiding a recession creates a distortion in the valuation of all assets. How do you value anything when interest rates are negative? For great insights on the topic read Howard Marks’ memo on the “mysterious” negative interest rates.
This search for return will drive more people towards riskier asset classes like growth stocks, venture capital and eventually the luring asymmetric bet of crypto assets. "Risk on" state of mind is what crypto needs as the whole asset class (even bitcoin) is perceived as very risky.
US election year
Trump will do anything to keep the stock market and the economy going in 2020. The argument is short but compelling.
He has been very vocal about the new highs and didn’t miss the chance to praise himself for the huge 2019 stock returns. He will likely not do anything that will blow the positive investor sentiment.
This is another tail wind for risk prone investor behaviour in 2020 which will favour crypto assets.
The halving narrative
Bitcoin’s block reward halving is scheduled to occur in mid May 2020. It will bring the daily production from 1800 down to 900 coins per day. This will also cut its annual inflation in half to less than 1.8%. While being twice less powerful than the previous having in 2016, this production cut is still going to influence the price. As a self fulfilling prophecy or a supply-demand result, both previous halvings were followed by an upward price spiral that resulted in a bubble and a blow off top. This is relationship is difficult to ignore and if there is a favourable "risk on” environment in 2020 there is a good chance it will happen again. It may also come faster as investors will try to front run it.
Also, this time we have halving events in the two major forks of bitcoin which did not exist back in 2016 - BCH and BSV. Despite being controversial, they are still among the top 10 largest crypto asset. Their supply cut and potential price rise may help feed the whole “bitcoin halving” narrative and create an upward price spiral for the whole sector.
The latest example of a halving was in litecoin this year and it had a very distinct price effect.
It’s been a while since the last bubble
It’s been exactly 2 years after the top of the previous bubble. Most alts are over 90% down from their all time highs. That is a lot of damage for the speculative investor who came in 2017 and 2018.
Also the lows in most coins were set one year ago and have not been broken down despite prevalent pessimism. This has been a painful environment for anybody looking for a quick buck.
There is also a widespread apathy and pessimism among the crypto community with even hardcore believers changing their forecasts to mediocre 2020.
After 2 years and lots of assets down more than 90% from ATH it seems that most of the coins are held by very strong hands. Therefore downward pressure is limited and if it occurs it would be mainly driven by short term speculators.
Tech development
The hot word of 2016 was “blockchain”. The whole world got excited about it in 2017. 2019 is the year of DeFi.
In case bitcoin gets close to $20 000 again the “late" money will flood once again to smaller crypto assets seeking higher returns. If/when bitcoin’s blocks get full and transactions become expensive the old narrative of “bitcoin doesn’t scale” would become valid again and this would spread money to BCH, BSV, ETH and others.
Another potential narrative that exists today is the “decentralised finance” - exchanges, derivatives, stablecoins, borrowing, lending all that infrastructure got far more sophisticated since the last bubble. Apart from DeFi projects tokens, Ethereum is also poised to be one of the top beneficiaries of this trend as it hosts most of the DeFI activities. However the "Ethereum doesn’t scale" narrative is also valid so a lot of money could spill over to the competition in the smart contract space.
It’s been more than 2 years since the scaling problems became obvious and a lot of projects that specialised in that domain are up and running. Others are at the final stages of being launched. What would be a better test than a real world influx of new users and apps that will try to fill the capacity. The process of finding a proper scaling pathway will be pushed forward in case of another bubble.
Conclusion
That scenario will change in case of a global recession that brings the “risk off” attitude. Then assets will fall into a negative price spiral and investors will be looking to preserve their capital by fleeing to “safer” assets. Although such a recession is inevitable at some point, it seems that central banks have been very good at avoiding it by kicking the can down the road. If they succeed again in 2020, get ready for an explosive crypto year. However, do not assume this run will be the same as 2017. It depends much on the global economy and investors’ risk appetite and it may be cut off earlier and not result in a full blown bubble like the one from 2017. The sensible investor needs to be cautious and plan for the short run in this environment.
submitted by bbelev to Bitcoin [link] [comments]

Forbes miner's union plan, let you make it clear

Forbes miner's union plan, let you make it clear

https://preview.redd.it/51dwnbfy30451.png?width=900&format=png&auto=webp&s=79b57b192df4f4f11f0c7eb6ae849b169891f37c
Learn from famous teachers: Dao organization comes from Cosmos, poca and other well-known open source projects as well as a number of Wall Street financial practitioners
Grounded Technology: the core research direction of blockchain developers "cross chain"
Looking at finance: building distributed financial infrastructure
Layout of mining industry: "mining machine, mine field and mine pool", and strive to build a trinity of mining giant whale in 2020
In 2020, Forbes, the most concerned blockchain 4.0 project, is about to launch its global mining plan: Forbes has released its own ASIC chip bitcoin miner, and GFS hard disk miner is under development. At the same time, Forbes deployed mines in various regions of the world, including China, Southeast Asia, the United States, Australia, Russia and other places, to protect the "consensus".
Forbes receives f2pool Based on the deployment of mining machines and mines in 2020, the Forbes plan will be launched with the strong support of internationally renowned mining pools. It is expected to build into the world's largest, most open and transparent comprehensive mine pool within three years.
Miner and quarry
Blockchain is revolutionary. It allows anyone to own and transfer assets through an open financial network without a trusted third party. There are now thousands of blockchain based assets, and the main way to produce encrypted assets is mining. "Mining", i.e. encrypted assets, represents the wealth anchored by the blockchain system, "mining" is the most direct means for all the network to obtain wealth. When the miner obtains the right to pack the blocks according to the consensus rules based on cryptography, and packages all the transactions correctly, the mining behavior can obtain the reward (token) given by the blockchain system for its honest record of the blocks, and when the blockchain system gains value promotion due to the growth and development of the participants, the token obtained by the miner will also be given higher and higher The secondary market value of. The miners produced the initial system pass. Therefore, mining industry has become the most upstream of blockchain industry.
It can be said that mining industry is the foundation of the whole blockchain industry, which determines the 0 or 1 of a blockchain system. The mining equipment we use is the miner.
https://preview.redd.it/jvfi6mfg40451.png?width=780&format=png&auto=webp&s=19dad192911d4a9addc1d285c7db5491c75904b0
The miner is essentially a computer. Personal computer is generally composed of CPU, GPU, memory, hard disk, motherboard and other devices. Mineral machinery is no exception in nature. Any mineral machinery is composed of motherboard + hard disk + mining chip. However, due to different mining machines for different algorithms of digital assets, such as GPU (or ASIC) for BTC, ETH mining, CPU for Monroe money mining, hard disk for IPFs, Bhd and other projects mining.
Forbes mining machine in the main board, hard disk, mining chip innovation, Forbes uses dpoc consensus algorithm, belongs to the hard disk mining branch. Forbes with the strongest computing power is also in the field of the Internet of things. In foreign countries, everything is connected, hundreds of millions of intelligent devices are connected with each other, and they have super computing power and stability. Forbes mining machines all over the world will be very suitable for the deployment of Internet of things protocol, and become an important component of blockchain + Internet of things.
The mine site is the offline site for the deployment and maintenance of mining machines. But for ordinary investors who want to enter the market, mining is difficult because the mining threshold is too high. Personal users want to mine, there is a huge deployment threshold and technical threshold. First of all, individuals can not get excellent electricity price, high temperature and high noise environment makes it impossible for users to mine at home. In addition, mining needs to be configured and deployed, and expensive mining machines need to be maintained regularly. Musk said that Tesla is not selling cars, but workshops. Standardization is necessary for an industry to achieve success. In the early miner Alliance Plan, Forbes launched its own BTC ASIC chip and bitcoin miner. At the same time, combined with major capitals, it created a global standardized Forbes mine, which was deployed and maintained in a unified way, greatly extending the service life of Forbes miner. According to the simulation test, Forbes I miner can operate stably for more than six years, which greatly reduces the mining cost and enables investors to obtain higher profits. Later, Forbes will log in to the Forbes hard disk miner in the ore pool after the main network goes online.
Forbes miners Alliance Program
Miner Alliance Plan: during a period of time when Forbes main network goes online, users can use collateral parallel chain assets (such as usdt, BTC, etc.) to lease computing power to deploy mining machines in global mines. In the lease term, the deposit is returned by the smart contract according to the number of days, and the mining revenue is obtained by the early participating nodes.
Due to the cross chain implementation of Forbes, a large number of nodes need to be deployed in the early days to complete the information interaction between the relay chain and the parallel chain. And with the scale of ore pool access, the marginal cost of new mining machines will be lower and lower, and the revenue will grow steadily. Therefore, Forbes started the plan of Forbes miners' alliance, realized the rapid scale of the mining pool with market funds, and realized the stable growth of mining profits.
Through the miner alliance, users can rent mining machines. In the form of "deposit contract" to ensure that each miner's fund is dedicated, and at the same time, for each miner, it is considered to realize the real deposit settlement on schedule through the blockchain intelligent contract. After the Forbes miner generates mining revenue, the user will get kusd stable currency. In the operation plan of Forbes Dao, all the miners who join the mine have the opportunity to convert part of the profits into GFS with unlimited potential.
It is estimated that the early participants in the Forbes miner's program will have more than 1.6 times the deposit during the lease term of one year. It was asked where such gains came from. In fact, as a representative project of blockchain 4.0, the appreciation of GFS is inevitable. At present, the trading of GFS secondary market has increased by more than 10 times in a week. With the continuous extension of parallel chain and the continuous exploration of financial business, there is almost no doubt that the growth of GFS exceeds that of bitcoin in a year, even if it is halved. Forbes Dao mass produces Forbes super miner through the digital assets mortgaged by users. After the cost is removed, it covers more than 1.6 times of the revenue to nodes. Almost the secondary market value of GFS alone is far beyond.
In addition, the BTC value dug out in the miner's Alliance plan will become a stable support for the miner's Alliance Plan, and 2020 is known as bitcoin minus half a year. Get BTC while digging GFS. To say the least, the price of GFS has fluctuated, and the BTC dug out is actually stable. Not to mention that the layout of Forbes gold stable currency, Forbes DEX and so on has been dragged down, and the user's income is cashed at any time. Forbes' miner plan is a three-way and multi win business initiative, which is the distributed power.
submitted by forbeschain to u/forbeschain [link] [comments]

My review of "A model for Bitcoin’s security and the declining block subsidy" -- a new research paper by Hasu, Prestwich & Curtis

In their new paper, authors Hasu, James Prestwich and Brandon Curtis present a simple yet realistic model for bitcoin's security as the block subsidy declines:
https://uncommoncore.co/research-paper-a-model-for-bitcoins-security-and-the-declining-block-subsidy/
With a block subsidy halving scheduled for next spring, the topic is timely. As the authors' note
"the most important source of miner revenue, the block subsidy, will have to be replaced by an entirely new source of revenue"
Indeed, and it is miner revenue that plays the critical role in bitcoin's security.
Work on this topic tends to come in two flavors. Flavor 1 is full of mathematical splendor built upon assumptions that are too simplistic to make realistic predictions (e.g., assuming an arbitrary amount of hash power can be easily rented and thus predicting that double-spends should be occurring all the time [yet they rarely do]). Flavor 2 is better grounded in empirical fact but often limited to qualitative reasoning alone. This paper has the best features of both: it succeeds in incorporating the most-important real-world factors but in a way that still results in a rigorous model that permits quantitative reasoning about the system's security properties.
Key to the model is the concept of miner-extractable value (MEV). This is the total value that a miner can extract by "not mining honestly" as it were (e.g., reorging the chain or other shenanigans permitted by the protocol). If the MEV is big enough, then a miner can earn more profit by attacking than by mining honestly.
The paper is unique by incorporating the term p(postAttackPrice) in the model. If p(postAttackPrice) = 95%, it means the price of a bitcoin fell to 95% of its pre-attack price as a direct result of the attack. Interestingly, in the authors' model, only MEV and the miners' revenue are discounted by this term. The miners' cost remains fixed, as these costs are tied to consuming real-world resources like electricity and transistors. This means the expected value of the attack becomes negative very quickly with even small changes in postAttackPrice.
(Aside: Does this highlight an important difference between proof-of-work (PoW) and proof-of-stake (PoS)? In a proof-of-stake system, the costs are denominated in the same "units" as the rewards, since there is no tether to the physical world via mining. And so the terms in the equations related to the miners' costs might scale with p(postAttackPrice) too, thereby weakening the security model compared to PoW.)
The authors' then describe how, based on their research, ~50% of the cost of mining is due to fixed infrastructure costs (a term in their model called "commitment") rather marginal costs. Since a decrease in postAttackPrice applies over the entire lifetime of this infrastructure, even a slight decrease can impose a big cost on the miner, making dishonest mining unprofitable if detected.
(Aside: although the authors consider the security of confirmed transactions in their model, the arguments related to the infrastructure commitment and postAttackPrice apply similarly to miner-assisted fraud for unconfirmed transactions. Proposals such as subchains, STORM and double-spend proofs that bring visibility to miner shenanigans thus increase unconfirmed transaction security by providing the market with the information it needs to react (e.g., to drive down postAttackPrice)).
Finally, the authors include a term in their model that reflects the fact that the users could temporarily suspend Nakamoto consensus and fork to a different chain where the miners' infrastructure commitment has no value. This isn't new (it's often called the "nuclear option") but it's also incorporated into their quantitative model.
In terms of solutions moving forward, the authors talk about constraining the amount of block space produced to derive maximal transaction fee revenue from the users. This is a topic explored in depth by Nicola Dimitri in a recent peer-reviewed paper from the spring of 2019 that the authors may not be aware of:
https://ledgerjournal.org/ojs/index.php/ledgearticle/view/145/153
The authors also discuss the controversial option of ceasing the reward halvings in the future in order to maintain sufficient miner revenue for security. I agree this is a discussion we need to have. The point driven home by the authors is that, whether through transaction fees or inflation, security must be paid for somehow. And it's not yet clear what methods provide the best value for the network as a whole.
I do find it odd -- and a testament to how religious the cryptocurrency space is -- that the authors were brave enough to discuss increasing bitcoin's inflation head on, yet only skirted around the taboo topic of increasing the block size limit. It is very easy to see that by scaling bitcoin on-chain, for example to 50,000 tx/sec each paying $0.02 in transaction fees, would result in $1000 per second of miner revenue even without any subsidy -- 5 times more than the ~$200 per second the miners earn today. If bitcoin (BTC) discourse is actually at the point where an increase in the inflation schedule is on the table while an increase in the block size limit remains off the table, then BTC is doomed. Ironically, the authors discuss that one way to erode confidence in the system is by limiting transaction throughput:
"one way to achieve this [erode user trust in the system] would be to establish a mining monopoly and stop processing any transaction at all"
which, depending on the lens through which one is looking, is nearly the situation BTC finds itself in today.
Overall I think this was a really well written paper that both bitcoin newbies and veterans will enjoy.
submitted by Peter__R to btc [link] [comments]

Seeking group effort on more opinions and insights

- Generational member of ruling bloodline family states on September 10 , 2008 " I am prepared to give you some things coming down the timeline, that you will be able to look back upon, and verify my predictions retrospectively. The stock markets will soon complete there controlled demolition. After an initial "appearance" that the "bail outs" and "rescue packages' have steadied the ship, there will be new record lows by the end of the month. Our financial institutions will later call in all loans. There will be many bankruptcies and foreclosures. ------There will be a new currency by the end of 2008 / early 2009 ( he or she is talking about bitcoin)
- Great recession of 20th century started in December 2007 and ended/ declared a global depression in June 2009.
- " The domain name "bitcoin.org" was registered on 18 August 2008.[21] On 31 October 2008, a link to a paper authored by Satoshi Nakamoto titled Bitcoin: A Peer-to-Peer Electronic Cash System[4] was posted to a cryptography mailing list.[22] Nakamoto implemented the bitcoin software as open-source code and released it in January 2009.[23][24][16] Nakamoto's identity remains unknown
- The WHO declares global pandemic (H1N1) July 1st 2009
- Bitcoin block halving reward countdown 44 days from now (April 13 or 14) 2020
- Covid 19 seems to be the cover up for this for another looming recession thats been happening up until the boiling point
Im not that well versed on natural law so I am going to ask questions now in hopes of jumping over the impediment of my free will/ sovereignty so here it goes. What is going to happen 40 plus days from now that will effect the world? What is the plan behind the scheduling of bitcoin, virus plot, recession etc ? What are all of the laws that you follow as to not accumulate karmic debit?
https://preview.redd.it/mway6k7qlup41.jpg?width=1136&format=pjpg&auto=webp&s=d1a8f3d84b8caaf5c0b64ca6134d64e8119be4f4
https://preview.redd.it/4lhsie4tlup41.jpg?width=1136&format=pjpg&auto=webp&s=f9cfba3567b96e3992b6d4c9162ccfad89d54370
submitted by shayeyetuh to conspiracy [link] [comments]

BCH Block Reward Halving ONLY 16 Days to Go – How Will Markets React?

BCH and Bitcoin halving, where the reward for mining new blocks is halved, are scheduled to occur once every 210,000 blocks.
BCH has roughly 16 days to go till the block rewards halve.
Bitcoin is expected to have its halving event in 49 days, a full 33 days after BCH.
How do you think this will affect the miners and market sentiment for BCH and for Bitcoin?
https://coin.dance/
submitted by FluidAttitude to btc [link] [comments]

Myths & Facts On Bitcoin

Myths & Facts On Bitcoin
Bitcoin is attracting the attention of an increasing number of both investors and ordinary people. Many years have passed since the birth of the first cryptocurrency but there are still a lot of rumors surrounding it.
by StealthEX
In this article, we will try to dispel the most popular myths about Bitcoin and shed light on reality. So let’s roll!

Everyone can “print” Bitcoins, so they are useless

Nowadays the complexity of Bitcoin mining is too high and moreover it is constantly increasing.
As known, Bitcoins are mined in blocks and the reward for each block is halved after every 210 thousand blocks produced. And if in 2009 the reward for the block was 50 BTC, now it is only 6, 25 BTC, and this reward will continue to decrease.
Due to the innovation in mining equipment, the total network performance has increased many times along with the complexity. At the moment, a standard PC is not able to provide the necessary computing power for mining digital gold. For profitable mining, huge investments required which measured in hundreds of thousands and millions of USD.
The value of Bitcoin is determined not by the fact that it can be minted by everyone, but by whether this currency will be used by people in everyday life.

BTC is used to buy drugs and money laundering

Illegal activities exist much longer than Bitcoin. Yes, it is possible to buy drugs for BTC as it is also possible to do so using the American dollar, Nigerian naira, or Thai baht. Bitcoin is just a means of payment. So blaming the tool for how it is being used is not right.
It is also worth mentioning that in the blockchain each transaction is public, which is not very convenient for illegal activities. It is believed that only 1-5% of all BTC transactions are used for money laundering. Of course, there is no consensus on this issue.

Using Bitcoin is not safe, exchanges are constantly being hacked

Headlines announcing that another major cryptocurrency exchange was hacked could scare away anyone from the crypto industry. However, Bitcoin network has never been hacked.
The technology that was created by Satoshi Nakamoto is safer than any bank in the world. So rogues are unlikely could withdraw coins from hardware wallet even with physical access to it. Bitcoin cannot be falsified: the issue of new coins occurs according to a strictly predefined schedule, which cannot be violated.
But the situation with storing currency on exchanges is a real problem. Unfortunately, hackers remain the key enemy for the crypto community. So please be extremely careful when considering options where to store your savings.

Bitcoin is a pyramid scheme

Bitcoin value has risen 15 times in 2017 so no wonder that many people think that BTC is just another soap-bubble or Ponzi scheme.
But how does Ponzi scheme work? Existing investors profit from new entrants. However, there is no objective increase in the value of investments. In addition, a creator of the pyramid ultimately derives maximum benefit for itself.
All this has nothing to do with Bitcoin technology. Because there is no regulatory center interested in income generation and all the users are equal. And each transaction, each wallet is part of one huge system. The other important Bitcoin difference from the classical pyramid is that as the number of BTC holders increase the value of currency grows. But the profit of users doesn’t rise exponentially.
You should remember that Ponzi’s schemes exist in any currency. The Bitcoin technology should not be confused with various scam projects on the Internet that can accept this digital currency as deposits. And very often people who are being scammed in such suspicious projects blame the technology itself and not those who had deceived them.

Bitcoin has no value

In comparison with traditional assets like Dollars or Euros, Bitcoin is just a piece of program code. Cryptocurrency owners can only see some numbers in their digital wallets. But how real is their savings? Bitcoin is not backed with gold or government obligations. That’s why Bitcoin critics dismiss its value.
Saying that BTC is not backed with anything is not entirely true. But first let’s figure out how traditional currencies are backed.
After the suspension of the gold standard, most of the currency in the global economy is not backed by either precious metals or foreign exchange reserves. Moreover, many national currencies don’t have commodity collateral: currency issued doesn’t cover the value of goods produced in the country.
But then what is the source of currency credence? The answer is simple – government. As long as the nation-state supports the currency – people trust in it. But if the government can’t or doesn’t want to maintain this trust any longer – the currency fall.
So currency has value as long as people believe in it.
The source of confidence in BTC is in its own intrinsic value that brings this digital currency truly golden. Because the real value of Bitcoin is financial freedom.
Like and share this article if you find it useful 😉
Original article was posted on https://stealthex.io/blog/2020/06/02/myths-facts-on-bitcoin/
submitted by Stealthex_io to u/Stealthex_io [link] [comments]

✅ BITCOIN HALVING 2020 DONE ✅ Bitcoins Next Move? Bitcoin Block Reward Halving Explained! Bitcoin Block Reward Halving  What is it, and why is it HUGE for BTC Buyers & Miners Bitcoin Halving (The Halvening) versus the US Dollar & Fiat Inflation What You Should Know About the Coming Bitcoin Halving

The inflation/supply schedule of Bitcoin. Bitcoin Halving Dates. When the Bitcoin network was first launched January 1st 2009, the Bitcoin block reward was 50 Bitcoins per block.. Almost four years later on November the 28th 2012, Bitcoin had its first halving and the block reward was cut in half, to 25 Bitcoins.. Another four years later on July the 9th 2016 the second Bitcoin halving took ... Bitcoin Halving Schedule. The Bitcoin halving is scheduled in block height, not date. The halving happens every 210,000 blocks. The 2024 halving will happen on block 840,000. What Happens to Miners During Halvings? Many always speculate that miners will shut down after the halving. The reality is most miners are very smart and price in the halving, so they don't end up shutting down any miners ... The Bitcoin mining block reward periodically halves, until it will eventually reach zero, and this article explores the block halving schedule Block reward halving. Controlled supply. Bitcoins are created each time a user discovers a new block. The rate of block creation is adjusted every 2016 blocks to aim for a constant two week adjustment period (equivalent to 6 per hour.) The number of bitcoins generated per block is set to decrease geometrically, with a 50% reduction every 210,000 blocks, or approximately four years. The result ... Bitcoin’s halving schedule means that the “emission” rate of bitcoin goes down steadily over time. Most bitcoins were mined in the early days of the currency when the block reward was set at 50 BTC. By the time bitcoin is in the year 2100 and beyond, the block reward will have dropped to just a fraction of a bitcoin. To understand the impact of a bitcoin halving, it helps to look at some ...

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✅ BITCOIN HALVING 2020 DONE ✅ Bitcoins Next Move?

The Bitcoin halving of 2020 is almost upon us! What is the Bitcoin halving? Will Bitcoin's price pump?? What does the Bitcoin halving mean for you!?! Let's d... We will experience a couple more bitcoin halvings in our lifetime. Ledger miners are in charge of this task receive a mining reward in the form of Bitcoins for each block recorded the amount of ... How does Bitcoin's currency issuance schedule compare with the US dollar and fiat-based currencies? Is Bitcoin (and Bitcoin Cash) inflationary or deflationary? Which would be a better store of ... New Energy Source is the Oil of the 21st Century. Learn More: http://CrushTheStreet.com/Charge GUEST: http://Bitcoin.kn TOPICS IN THIS INTERVIEW: 02:50 Curre... The most anticipated cryptocurrency event of 2020, Bitcoin’s ( BTC ) third halving , has just taken effect. Occurring only once every four years, the latest Bitcoin mining block reward halving ...

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