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⚡⚡𝓦𝓱𝓪𝓽 𝓲𝓼 𝓱𝓪𝓵𝓿𝓲𝓷𝓰 𝓲𝓷 𝓑𝓲𝓽𝓬𝓸𝓲𝓷? ⚡⚡

Think about the old savings passbook, the bank teller and machine that prints your transactions on the passbook. Now visualized this, the old savings passbook needs to print out the details of your transactions, it cannot be done without the bank teller, by bringing to the bank and allowing the bank teller to verified you and your passbook, the bank teller will place your passbook into the machine and get your transactions data successfully printed. What does the bank teller get in return? The bank teller receives a salary monthly.

🎯So, putting this into blockchain and cryptocurrency, we know that, by solving a block, a miner will be rewarded in cryptocurrency. Bitcoins are created through a process called mining, where miners solve a puzzle using specialized hardware. This process occurs roughly every ten minutes. By solving the block, the miners will receive cryptocurrency in the form of a reward. And the 1st coin to ensure that a blockchain is legit and put in use is Bitcoin.

⚡𝑯𝒐𝒘 𝒎𝒖𝒄𝒉 𝒃𝒊𝒕𝒄𝒐𝒊𝒏 𝒅𝒐 𝒚𝒐𝒖 𝒈𝒆𝒕 𝒘𝒉𝒆𝒏 𝒂 𝒎𝒊𝒏𝒆𝒓 𝒔𝒐𝒍𝒗𝒆𝒔 𝒂 𝒃𝒍𝒐𝒄𝒌?⚡

In the early days, it pays out as much as 50 Bitcoin when a miner solves a block, yes, 50 bitcoins! 1 bitcoin is worth $54,224.80 USD today.

So this person or this group called Satoshi Nakamoto created this bitcoin blockchain and gets miners interested to mine the bitcoins, but there’s a catch, there is this mathematic formula that is in placed in the system that automatically half the rewards received every time 210,000 blocks are solved. Which means, it went from 50 bitcoin to 25 bitcoin to 12.5 bitcoin to 6.25 bitcoin and so on, as long as 210,000 blocks are solved. Once the puzzle is solved, new bitcoins enter circulation and are rewarded to the miners that solved the puzzle first. But the rewards are not fixed. Every 210,000 blocks mined, or approximately every four years, the Bitcoin rewards are cut in half.

⚡𝑺𝒐, 𝒘𝒉𝒚 𝒊𝒔 𝒕𝒉𝒆 𝒉𝒂𝒍𝒗𝒊𝒏𝒈 𝒊𝒎𝒑𝒐𝒓𝒕𝒂𝒏𝒕? ⚡

The main reason why the BTC halving matters is that it changes the emission rate of the currency, which directly alters the balance of supply and demand.

In other words, the number of bitcoins entering the economy decreases while the demand, at least in theory, remains the same. Many believe that this sudden shrinkage in supply will push Bitcoin’s price higher.

⚡𝑫𝒐𝒆𝒔 𝒂 𝒃𝒍𝒂𝒄𝒌 𝒔𝒘𝒂𝒏 𝒆𝒗𝒆𝒏𝒕 𝒍𝒊𝒌𝒆 𝒄𝒐𝒓𝒐𝒏𝒂𝒗𝒊𝒓𝒖𝒔 𝒂𝒇𝒇𝒆𝒄𝒕 𝒕𝒉𝒆 𝒉𝒂𝒍𝒗𝒊𝒏𝒈? ⚡

The covid-19 pandemic black swan event encounters a whole new level of complications with countries shutting down and travelling ceases.

This pandemic sends global stocks prices nose diving down and many stock investors lost their money over this event.

We do see the impact, however, is mainly on the supply of manufacturing components for the mining of bitcoins as well as the distribution of these parts to all parts of the world was affected.

Despite having only slight correlations with traditional assets classes like stocks, gold and ETFs, it appears that Bitcoins have a mind of its own. There is not much impact of the pandemic towards bitcoin. It does not seem to have any inverse correlation with traditional markets.

Bitcoins seems to move eerily by itself and what seems to have more influence towards it are the whales and leverage traders of bitcoins.

🧐Do you think bitcoin will ever be an investable asset class recognize by the government? What are the various application you can think of for bitcoins? Comment below. ⬇⬇⬇

𝘋𝘪𝘴𝘤𝘭𝘢𝘪𝘮𝘦𝘳: 𝘛𝘩𝘪𝘴 𝘮𝘢𝘵𝘦𝘳𝘪𝘢𝘭 𝘴𝘩𝘢𝘭𝘭 𝘯𝘰𝘵 𝘣𝘦 𝘤𝘰𝘯𝘴𝘵𝘳𝘶𝘤𝘵𝘦𝘥 𝘢𝘴 𝘢𝘯 𝘰𝘧𝘧𝘦𝘳, 𝘳𝘦𝘤𝘰𝘮𝘮𝘦𝘯𝘥𝘢𝘵𝘪𝘰𝘯 𝘰𝘳 𝘴𝘰𝘭𝘪𝘤𝘪𝘵𝘢𝘵𝘪𝘰𝘯 𝘵𝘰 𝘤𝘰𝘯𝘤𝘭𝘶𝘥𝘦 𝘢 𝘵𝘳𝘢𝘯𝘴𝘢𝘤𝘵𝘪𝘰𝘯. 𝘛𝘩𝘪𝘴 𝘪𝘴 𝘱𝘶𝘳𝘦𝘭𝘺 𝘴𝘩𝘢𝘳𝘪𝘯𝘨 𝘰𝘧 𝘧𝘳𝘦𝘦 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘵𝘩𝘢𝘵 𝘪𝘴 𝘢𝘷𝘢𝘪𝘭𝘢𝘣𝘭𝘦 𝘧𝘳𝘰𝘮 𝘵𝘩𝘦 𝘸𝘦𝘣𝘴𝘪𝘵𝘦 𝘢𝘯𝘥 𝘤𝘰𝘯𝘴𝘰𝘭𝘪𝘥𝘢𝘵𝘦 𝘧𝘰𝘳 𝘦𝘥𝘶𝘤𝘢𝘵𝘪𝘰𝘯 𝘢𝘯𝘥 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘱𝘶𝘳𝘱𝘰𝘴𝘦𝘴.