The image of halved BTC.

Opinion - Why Satoshi made halvings?

By peterurb | Peter Urban | 12 May 2020


In the evening when halving had to happen I watched live streams in one half of my screen and at the second I had opened block explorer of Bitcoin. When I was waiting I was curious why Satoshi created halvings. 

Why he didn't choose one date or some number of blocks with 50 BTC reward and then there will be no new Bitcoins? Did he want to make something like New Year? Only he can answer us - but if I would be Satoshi or I will know who it is I will surely tell it - I can't keep secrets.

The showman

Many people who know how Bitcoin works are saying, that mining is like game/lottery (my opinion). You have to deposit something (in BTC it is electricity) and you have to hope, that you will win, but more money (hashrate) you deposit here you have higher chance to win, lock the block and get the reward. And the same thing is with transactions where you have to spend much more on the fees to transfer Bitcoins. 

What if he asked himself (or people in his team): "What to make some special days?". And they found it out. They merged lowering the inflation and making special day. There were few tens of streams at many popular platforms and I am sure, that many other people which have slower internet where watching block explorers like me and waiting till block 630 000.

New year - in crypto

Bitcoin halving has many differences except it takes 4 years to halving. Also, we don't know exactly where will halving become (cause network is designed to mine blocks in every 10 minutes - in average). I am not even sure when should halving become - right when block 00 is confirmed or at a time between 99 and 00 blocks. I was also curious about how fast was block 00 confirmed, cause it was almost right after block 99 and I thought, that it was an error when people on stream were saying, that its having, but they were right.

One of the saddest things for me is, that Bitcoin Cash and its next forks don't have halving at the almost same time as Bitcoin but around a few days before. It is caused by using temporarily another algorithm to adjust the difficulty so blocks were mined faster. It is weird why they didn't test that algorithm if it will be fair and working, but that's the past for that fork, which I don't like a lot and when I am seeing in the comments on my favourite YouTube channels, that someone asks if it is good to invest money in BCH. I am still replying: "Why to buy some copy when you can buy original."

Mainstream news

Also, I think, that he wanted to make Bitcoin more popular. At this day it is more likely, that there will be some story about Bitcoin on TV. People who never looked at it will open Wikipedia and read what it is. I think, that it is interesting and that person will look deeper on how blockchain works or minimally he will buy some.

When I was looking for some articles about halving in my language I found an article from 2014: Hackers attacked Bitcoin - they made the only article about Mt. Gox hack. Then I was looking for some other articles and I found one from today about halving. There was something about halving and they showed price and asked what will it do with price. I don't know what that person thought. That price will rise to 10k USD by a few minutes? Huge pump/dump? I think, that people who know something about crypto or trading should wait a few months until some good price rise. It is generally known, that BTC is buyed only speculation and long-term HODLing. He showed us, that if he will buy BTC he will surely buy it only from speculation.

CNBC didn't look very crypto-friendly 2 years ago. But now it is much better and people who do they invite to their talk shows know much more about BTC and they are not only criticising it. Also, I have seen a part of their show where they were talking about halving a few hours after it became. I think, that Bitcoin is being much more accepted by TVs and people generally.

The line

I think, that Satoshi really wanted to make some Bitcoin special day - halving. But I am sure, that his biggest invention - blockchain will change the world. I hope, that price will rise, cause it will be more interesting for people who didn't like it before. Then the price will drop and they will not sell it. To not thinking about their money loss they will start learning about crypto and we will have more people in our community. Crypto-community.

 

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peterurb
peterurb

I hate fiat and love crypto and tennis. I love my wife and 2 kids.


Peter Urban
Peter Urban

I am writing about some interesting things in crypto community and also about basics of crypto.

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