Today marked a day of celebration for the entire Bitcoin ecosystem. Today marks a milestone for the Bitcoin network as the second Bitcoin block halving has taken place globally today on the 9th of July, 2016. So what is the big thing with this block halving? Many people do not understand what this event means. Could anyone imagine if the Federal reserve would announce that instead of printing more US Dollars they are now going to print less. This would actually be a miracle and of course will never happen. In fact, the Federal Reserve will continue to issue more paper money and thus diminish the purchasing power that each one of us has when buying goods and services. We all know that the more money there is in supply will create an inflationary effect that ruins any possibility of appreciation of wealth.
With Bitcoin it is much different. Bitcoin is the first digital currency of its kind to bring an opposite reaction to inflation by creating less and less of the currency via the Bitcoin peer to peer network. When Satoshi Nakamoto (person or group that created this currency/asset) created this currency it was meant to fight the problem of inflationary currency. This is currency that appreciates in value as less is created and released every 4 years into the network. Bitcoin started with 50 Bitcoins that were generated every 10 minutes, 24/7, 365 days a year back in 2009. Since 2009 these 50 Bitcoins represented a new and technological breakthrough in money. So now we have money that becomes more valuable as time passes but only if the users give it this value. Just as with the US Dollar, every user gives this paper money its value with people's trust and confidence. The same applies with Bitcoin. It is the confidence that users give any currency that will extend the life of any currency. The Dollar has been losing value and trust as government becomes more and more distrustful. Now, Bitcoin shows up with a new twist on a more valuable form of money. Today marked the 2nd halving date with Bitcoin. The network will now only release 12.5 Bitcoins every 10 minutes, 24/7, 365 days out of the year. Between the years of 2013 and now it was 25 Bitcoins and now it is 12.5. This is how currency becomes more valuable when less is released for people to use for whatever use cases there may be.
Today marks the 2nd halving date that is a historical point in time. Many governments will continue to print paper money into oblivion while Bitcoin will become more scarce as time passes. This is cause for celebration.
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