Even those who are not familiar with crypto assets or cryptocurrency investments have heard about it at least once in their life Bitcoin. Their invention, which dates back to the not so distant 2009, is a mysterious figure known by the pseudonym of Satoshi Nakamoto. The cryptocurrency nowadays has already reached a value of 40,000 per unit, with a peak last year reaching nearly $70,000 worth of BTC.
But why are Bitcoins worth all this value? One of the reasons lies in the fact that its creator designed it so that it was minted in a finite number, that is, equal to a maximum of d21 million tokens. This limit of 21 million tokens is called a “hardcover” in technical jargon and was set because of the offer BTC They were limited in nature as gold and precious metals and created this effect of increasing demand and decreasing supply of these assets.
Contrary to popular belief, in fact, bitcoins were created so that their behavior in the markets follows that of commodities like gold value reservesInstead of replacing the dollar in the strict sense of the word.
Michael Saylor, CEO of micro . strategy, who together with his company is considered the largest owner of BTC in the world, often points out that bitcoins are a better safe haven than precious metals because unlike these they are not perishable and cannot be destroyed. In fact, cryptocurrencies rely on technology Blockchain Which does not depend on a central server, lost data is destroyed, but it is a decentralized platform.
Bitcoin as ‘digital gold’, where does this definition come from?
The Bitcoin It is not a physical asset but a digital asset, yet the source code is so structured that there can be no more 21 million tokens.
This phrase often leads to confusion, as logical procedure leads us to believe that if I BTC In the end they are nothing more than an application, so how can we not modify Code source In order to create as many icons as you want.
Well, what you need to understand is that rather than being created in limited numbers, bitcoins (BTC) are regulated in such a way that no one has any advantage in cracking the hard cap and getting past this 21 million limit.
First of all, bitcoins are philosophically designed to behave like gold or similar assets, that is, because the force that drives price increases lies precisely in loss in nature, which causes the value of the currency to collapse as well.
hard cover It is set at 21 million units, which, moreover, is a very low limit if we consider, for example, that Ethereum can be minted to an unlimited number, which is precisely one of the main responsible for the huge value of Ethereum. Bitcoin.
How does Bitcoin work and what is ‘mining’ cryptocurrency
Bitcoins are regulated so that only they have the power to modify the network “Miners”, It is precisely those who have the least interest in lowering Maximum 21 million This is also for a phenomenon, which is always part of the source code, called “Half”.
To understand what we are saying, we need to give some grounding on how cryptocurrency works, starting with the fact that to validate transactions on Bitcoin blockchain The protocol named . is used proof of work, Which consists of a series of devices connected to the same network that solve complex mathematical operations. The use of these particular devices means that the cost of electricity and the environmental impact of these processes is very high.
When complex computations are resolved and transactions are validated, a block is added to the network and “miners,” that is, those who solve computations using these machines receive new mined bitcoins as payment for their work. This process of decoding new terms is called “Mining”. To be precise at the moment, miners receive it as a reward 6.25 Bitcoin for each added block.
What is halving and how does it affect the price of bitcoin?
source code BTC expected a phenomenon called “half” Which occurs on average every four years and consists of halving miners’ bonuses. That’s it 210,000 pieces It is halved to the Blockchain network and miners receive half of the BTC they received before as a reward. The next half has to happen eventually 2024 And raising the reward for one block added to only 3.125 BTC.
What one wonders when reading this is: Where then is the advantage Miners?
In this order, to prevent Mining It became less profitable, followed by the halving, a rally in the price of the cryptocurrency which so far has always led to historic highs. In this way, it is true that miners receive less bitcoin as a reward for their work, but these same coins are worth much more. The reason miners are the first not to care about smashing hard cover and coins more than 21 million bitcoinsas this would reduce the value of the digital currency itself.
It should also be taken into account that i Bitcoin They are also generated because the more you progress in mining, the more difficult it is to mine newer tokens. So far they have been extracted 19 million tokens, But the system predicts that circulation of all 21 million should wait around the year 2140.
A clear, detailed and simple explanation dI What are Bitcoins You can also find it in the YouTube video edited by “Te lo spiego”, which we suggest below:
It is possible to hack the Bitcoin Blockchain and break the 21 million token hard limit
Once only 21 million bitcoins It will be a trader, then the miners will be paid through the validated transaction fee.
As for the box the pirate From the network to destroy the hard cover also in this case, if everything is possible in theory, it would be much simpler to say something than to do since Bitcoin They do not have a single source code, but multiple source codes and any change requires unanimous approval from the network.
The periodic trend of the bitcoin price. What do you expect from the next half?
As for the price Bitcoin Many analysts looking at historical data are convinced that it follows a Four-year course and then half There is a year of strong bullishness for the currency, followed by a year in which the price has fallen and then two years of slow rise preparing for the next halving.
However, there are also many who suggest that over time halving can affect less and less in price of cryptocurrencies.
Specifically, according to many experts, the next halving could break the cycle and not reach a new, long-awaited high for i Bitcoin For macroeconomic reasons.
That’s because right now we have to be in the two years before the halving and cut it steady albeit not much. Noticeable uptrend. The problem is that this circumstance is also slow to happen for reasons associated with central banks at the global level, first of all feed it The United States, which is planning to raise interest rates on bonds, with disastrous effects on the crypto-asset markets. In fact, remember that a huge number of factors influence the value of individual cryptocurrencies in the markets.
Collaborator in editing, born in 1984.
I have a degree in classical philology and a doctorate in ancient history fromUniversity of Naples Federico II, with a treatise on the fragmentary work of Asclepid de Tragello. I am an author Scientific Publications About the Classical World and co-editor of two international academic volumes. Since 2015, I moved to England where I worked as a freelance copywriter and casino dealer.
My motto is? “Naples is a flower of paradise. The last adventure of my life.”