Monthly Archives: May 2020

BCH Hashrate

These last few decades saw the rise of a new transactional technique. This is the cryptocurrency. The cryptocurrency was an academic concept. However, it was soon virtual and took up the digital market by storm. Cryptocurrency came to existence with the rise of Bitcoin in the year 2009. Cryptocurrency is a virtual currency that is used for making transactions. These transaction records are stored in blocks. These blocks are highly encrypted and safeguarded with complex algorithms. In the nearer future, it is analyzed that a huge change in the industry is on the rise. It is predicted that it would add extra credibility if it floats on NASDAQ.

However, some say that the crypto platforms and currencies need an ETF. ETF stands for the Verified Exchange Fund. This will make it extremely easier for individuals to invest in Bitcoin. This will promote the demand for investing in Bitcoin.

Before investing you must dive into the basics of cryptocurrency. This will reduce your chances of losing your assets.

Similarly, many of you are not familiar with the term hash rate. What is it? Hash rate refers to the speed a computer takes to complete an operation in the Bitcoin code. Moreover, as an example, for Giga hash, a computer has the ability to try 1000000000 hashes in a single second.

Whenever you evaluate the hashrate of a Bitcoin network, it will take you near about 10 minutes. This is because of the block time offered by Bitcoin.

Moreover, complex hardware like ASICS helps you to mine efficiently. This hardware can go through trillions of hashes in a split second.

Generally, the hash rate determines the miner’s performance. Apart from this, it depends on the speed of a miner’s ability to solve Bitcoin codes. Higher the rate, the higher the rate of cryptocurrency mining. This is how a miner receives block rewards. Also, this efficiency is measured in J/Ghash i.e. Joules per 1 Billion Hashes.

As said earlier, the hash rate also determines a miners’ reward. When the network chart rises up, it means the hash rate will also increase. The miners then receive 12.5 BTC along with transaction fees.

However, when the complexity of the network increases the hash rate also increases. Hence, to solve a cryptographic problem you need to have more computational power.

Lastly, A hash per second illustrates SHA-256 algorithms. They are used at every second. The S.I. unit is h/s. Moreover, this rate also promotes the efficiency of the miner’s to solve problems and mine more.

Is the Bitcoin Block Generation Time Reasonable?

Bitcoin is a decentralized cryptocurrency that does not require any central authority. Instead, the distribution of Bitcoins is based on a peer-to-peer networking system. Here, the bitcoin generation time is of the essence as it gives an idea about how the Bitcoins will be produced and when. It is also crucial for tracking any malicious user that fails to follow the protocol, and as a result, the Bitcoins generated by the malicious user will be deemed null and void.

Bitcoins are created every time a miner comes across a new block in the network. It takes the use of pretty expensive equipment.

The Logic Behind Bitcoin Block Generation Interval

A peculiar calculation works behind the block generation interval of Bitcoin. For 2016 blocks on the network, the number of blocks created is constant for about fourteen days. It roughly means that one block is generated every six hours.

Now, there is a gradual nonrandom decrease in the number of bitcoins produced in each block. There is a 50% reduction in this value every four years, referred to as the Bitcoin halving event. As a result, the number of bitcoins mined is unlikely to exceed 21 million any time soon. It is proper mathematics behind then timing as this schedule is at par with the bitcoin reward halving that occurs every four years. The creator of Bitcoin, Satoshi, has not explained it clear as to why he has chosen the decreasing supply-chain algorithm. There are speculations that he has possibly chosen this because it has a close approximation with the mining of other things such as gold. It is the reason why people who discover a block are called miners.

The time required for the discovery of a new block depends on the user’s mining ability and the difficulty of the network. There are also variations for the time taken for different block rewards to halve.

What if the Bitcoin Mining Power were Constant?

If the mining power of Bitcoin were kept a constant since its inception in 2009, then the last Bitcoin would get mined on 8th October 2140. What is difficult is to predict how the mining power of Bitcoin is likely to change in the future and how exactly it will affect the block generation time.

The Bitcoin Halving Event: Explained

The value of Bitcoin halves every four years as per the sequence, and inMay 2020, the latest Bitcoin halving event has happened. Now, many people are still unaware of what Bitcoin halving is and how it affects the cryptocurrency market. In case you have the same questions, keep reading to know more about what happens when Bitcoin is halved.

The halving event of Bitcoin remains one of the most anticipated occurrences in the entire cryptocurrency community. Bitcoins are released in each block every ten minutes. In May 2020, the BTC was halved from 12.5 to 6.25. What draws so much attention to Bitcoin and the associated halving event is the possibility of unlocking riches. Many people have different speculations concerning the periodic decline that continues to occur in the mining rate of Bitcoin.

Why is Bitcoin Halving a Point of Attention?

One of Bitcoin’s essential components is the availability of block rewards, which are of high importance to miners. As the Bitcoin blockchain is leaderless, it is the block rewards that ensure security and safety.

The matter of concern is that the halving event of Bitcoin every four years will essentially bring the value to zero in about a decade. It is likely to be the entire security layer of Bitcoin as there will not be any economic incentives for the miners.

What Exactly is the Bitcoin Halving Event?

Every ten minutes, new Bitcoins enter blocks in the form of block rewards. When miners use expensive computational movement for mining, it means that they are producing these Bitcoins. The value of BTC or bitcoin reward is exactly halved after every four years when about 2,10,000 Bitcoins have been mined. Bitcoin started in the year 2009 when the cost of BTC was 50. The first having event took place in 2012 when the value decreased to 25. The following halving event occurred in 2016 when the price halved from 25 to 12.5. The latest halving event was from 12.5 to 6.25 in May 2020.

Bitcoin’s monetary policy is drastically different from that of the state-issued policies. Unlike the state-issued policies. Bitcoin is shared across a network, and its monetary policy has been written with the help of codes.

It is yet a matter of speculation whether BTC will soon be halved to zero or there will be an increase in the supply chain. One thing is clear: Bitcoin as a cryptocurrency will continue to be mined.