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Why Did Satoshi Nakamoto Limit Bitcoin’s Supply to 21 Million?

Attempt to answer this mysterious question.

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Attempt to answer this mysterious question.

Image: Shutterstock

or many people, Bitcoin is simply the new fashionable way to get rich fast. These people are taking a shortcut, which may well play tricks on them in the future.

In life, there are no shortcuts. There is no quick fix for getting rich fast. Everything is the product of hard work and perseverance.

Bitcoin is all about power. Bitcoin is the best savings technology in the world. You place the fruits of your hard work within the Bitcoin network, and it will be protected from the ravages of monetary inflation in a way that is resistant to censorship.

This is currently Bitcoin’s greatest value proposition. As the adoption of Bitcoin by the general public progresses, you will be able to use it as a means of payment in everyday life. However, we are not there yet. That is why I repeat that we are still at the beginning of the Bitcoin revolution.

I have been writing daily about Bitcoin for several years now, sharing my ideas, opinions, and some knowledge.

The most rewarding thing is then to be able to have exchanges with newcomers in this world. It is always interesting to listen to what drives these people to come to the world of Bitcoin. Even better, I listen carefully to the questions they may have and try to provide them with answers as best I can.

One question I am often asked is this:

Why Did Satoshi Nakamoto Limit Bitcoin’s Supply to 21 Million?

This is an extremely recent question to which few people generally provide answers.

This question can be divided into two parts. The first is why Satoshi Nakamoto has limited the supply of Bitcoin. The second is why did he choose the figure of up to 21 million BTC?

I will start by answering the first question, which seems to be the most obvious.

Satoshi Nakamoto understood that the problem with the current system is the total freedom given to central banks to print as much fiat money out of thin air as they deem necessary.

Thus, a few central bankers have far too much power over all the inhabitants of the earth. We should be able to trust them blindly, but history has shown us that this is impossible, as Satoshi Nakamoto rightly pointed out:

“The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve.”

You understand here that Satoshi Nakamoto created Bitcoin to address the problem of trust in the current banking system. Bitcoin is a successful attempt to return power to the people regarding money.

To address the problem of the endless debasement of fiat currencies in the current system, Satoshi Nakamoto has therefore limited the maximum supply of BTC that could be issued.

This limitation was defined within the Bitcoin source code. All nodes running on the network guarantee this essential rule.

This has incredible implications for the fruit of your labor that you secure within the Bitcoin network. If you buy 1 BTC today, you are guaranteed to still own 1 BTC out of 21 million in 10, 20, or 50 years.

With all other fiat currencies, you cannot have this essential guarantee.

The second question was why Satoshi Nakamoto chose the 21 million BTC limit. Indeed, he could have chosen 20 million or 26 million after all.

To begin with, it is interesting to look back at some of Satoshi Nakamoto’s messages on this question:

“I wanted to pick something that would make prices similar to existing currencies, but without knowing the future, that’s very hard. I ended up picking something in the middle.”

Satoshi Nakamoto then added in an email exchange with the developer Mike Hearn this:

“If Bitcoin remains a small niche, it’ll be worth less per unit than existing currencies. If you imagine it being used for some fraction of world commerce, then there’s only going to be 21 million coins for the whole world, so it would be worth much more per unit.”

Satoshi Nakamoto could therefore have chosen this number of 21 million to foresee a possible alignment with fiat currencies. Thus, 0.001 BTC (1 mBTC) could have been worth $1 at term. This prediction became true in 2013. Today, 0.001 BTC is worth much more than that.

Another hypothesis is related to the global money supply at the time Satoshi Nakamoto created Bitcoin. At that time, the global money supply was $21T. Known as the M1 Money Supply, this number includes the total value of all physical money in the world, including cash, coins, and travelers’ checks.

If we imagine that Bitcoin could one day become the world’s reserve currency, the figure of 21 million units for Bitcoin would have the following equivalence: 1 BTC = $1 million. The Satoshi, the smallest unit of Bitcoin, would then have represented $0.01.

All this, however, remains only conjecture.

In terms of conjectures, other people have imagined a mathematical explanation for this choice. To do so, they have assembled the various parameters of Bitcoin’s programmatic monetary policy.

The Bitcoin core software adjusts the difficulty to mine a new block every 10 minutes on average. From this average, 210,000 blocks should be mined during each 4-year cycle. At the end of a cycle, a Halving takes place reducing by half the reward allocated to miners mining a block of transactions correctly.

In the first cycle, the reward was 50 BTC. It was halved to 25 BTC per block mined in 2012. It then dropped to 12.5 BTC in 2016, before dropping to 6.25 BTC after the Halving of May 2020.

By extrapolating this reduction, you will notice that the sum of the block rewards over each 4-year cycle is equal to 100:

50 + 25 + 12.5 + 6.5 + 3.125 + 1.5625 + … = 100

Multiplying this number by the number of blocks mined in each cycle, 210,000, you get the maximum number of BTC that can be put into circulation: 21 million.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.inbitcoinwetrust.net/why-did-satoshi-nakamoto-limit-bitcoins-supply-to-21-million-1d0395cef25b?source=rss——-8—————–cryptocurrency

Blockchain

Which crypto exchange platform is faster, coin transfer or Godex?

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The coin transfer exchange works in a semi-automatic mode. The exchange takes place from morning to evening with the participation of the operator. All switching processes are carried out with the help of a support person. This way of working has its advantages.
A lot of people these days use automatic exchanges because it’s quick and easy. However, a semi-automatic service offers the possibility of a safe change.
This option is particularly recommended for beginners who do not yet know how to correctly fill in the fields in trades, how to find out the amount of the commission and when to complete the operation.
Most important steps in currency exchange
The change works in 3 steps:

Step 1: Select a currency pair to swap in the cryptocurrency converter. Check the box that you agree to the tariff, service fees, and fees for the cryptocurrency network.
• Step 2: Fill out the exchange form and check the entered data, as in most cases cryptocurrency transactions cannot be canceled.
• Step 3: Send the amount specified in the application to the address provided by the exchange operator and receive the cryptocurrency on your wallet within 5-30 minutes.
Cointransfer has been active since 2016 and offers 219 currency pairs.
The swap board has over 1,760 reviews, most of which are positive. If you have already changed the currency on this service, you can leave your feedback and add to the collection of comments on this exchange service.
Godex
The Godex crypto exchange is an excellent example of a website that allows you to exchange one type of cryptocurrency for another online. Dynamic price changes, complete absence of transaction limits (the transaction time can increase with large amounts), a clear user interface – everything is done here to ensure that investors feel comfortable. There is also a dedicated affiliate loyalty program so you can get a quick entry into the cryptocurrency market. It is time to look into the subject of such an investment.
You should understand right away that it is impossible to completely eliminate the risks involved in buying a cryptocurrency. Even most stable coins can lead to a complete loss of the money invested; even if the likelihood of such a course of events is extremely low. Only after you have considered all the advantages and disadvantages of each model, familiarized yourself with the market indicators over a period of time and analyzed the opinions of experts, should you make an informed decision.
When you are ready to buy cryptocurrency, you should do so strictly in accordance with certain rules. Investments need to be planned and made wisely. Creating a wallet with an address is necessary and does not take much time. You can buy the cryptocurrency you are interested in after registering with a specialized exchange – just select a popular currency to buy. After buying, many advise transferring the coins to offline storage to eliminate the possibility of hacking and theft of investments. By investing in one with a view to market capitalization, the risks of a currency can be significantly reduced. The three cryptocurrencies that currently meet these requirements are:
Bitcoin;
Ethereum;
Litecoin.
Godex.io currently serves thousands of customers with over 10,000 transactions daily. So if you are looking to swap one coin for another, you should try Godex.io and enjoy fast transactions at good exchange rates.

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Maker Hits a New All-Time High Close to the $5,000 Mark

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Maker is the first Ethereum-based smart contract system to launch an automated cryptocurrency lending platform. 

Maker provides the first decentralized basic stable currency Dai (which can be compared and analyzed as the U.S. dollar on Ethereum) and a derivative financial system, promoting the prosperity of decentralized finance (DeFi).

Dai is issued through a full mortgage guarantee of digital assets. Since its launch in 2017, Dai has always remained anchored to the U.S. dollar with a 1:1 ratio.

On April 19, members of the MakerDAO community began to vote on MIP45, a proposal aimed at upgrading the liquidation system of the Maker protocol and maintaining the stability of Dai pegged to the U.S. dollar.

If approved, the liquidation 2.0 system will provide higher security, predictability, and decentralization, and provide community members with more opportunities to participate in collateral auctions through Auction Keeper software and a more conventional interface. This will promote the participation of the Maker community and the entire DeFi department.

According to data from DeFi Pulse, Maker, the largest DeFi agreement with system collateral of $965 million, dominates 16.44% of the entire DeFi market.

The holders of the Maker (MKR) tokens of the project have received a 64.23% price increase reward in the past week. According to CoinMarketCap, Maker with a market cap of $4,817,105,553, ranks as the 30th largest cryptocurrency.

The token has grown nearly eight-fold since the beginning of this year, rising from $587 to $4,652,  It hit a record high of $4,995 today, breaking the $4,500 marks in one clean swoop.

Maker (MKR) Price Analysis

Source: MKR/USD 4-hour via TradingView

Judging from the 4-hour candlestick chart, MKR has successfully broken through its previous high of $4,118, and the rapidly expanding trading volume has resulted in $4,118 being flipped from a resistance to a support level.

The transaction price of MKR/USD is higher than the Exponential Moving Average (EMA) ribbon. Both the upward moving average and the bullish MACD index indicate that the bulls are currently dominating the market.

However, the Relative Strength Index stepping into the overbought zone is gradually levelling off, which suggests that MKR is encountering relatively strong selling pressure after touching its all-time high of $4,995 today. The MKR’s price will therefore experience a slight retracement, and it is likely to trade sideways for a period of time around $4,400-$4,600 before resuming its upward momentum.

If MKR’s price can stabilize above $4,200, then the upward trend of Maker may open a faster upward channel. As Maker hit a new high, this will mean that the altcoin will not encounter strong selling pressure on its way up. If the entire crypto market emerges from its current slump, it is highly likely that Maker breaks through $5,500 in the short term.

Conversely, a surge in the number of sell orders will push MKR below the $4118 support level and may trigger a more severe correction to the 20-day Exponential Moving Average of $3,795.

Image source: Shutterstock Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://Blockchain.News/analysis/maker-hits-new-all-time-high-close-5000-mark

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Bitkingz Casino Exclusive Bonus

Bitkingz casino is a crypto and fiat casino. The casino offers over 4000 casino games. Online… read more

The post Bitkingz Casino Exclusive Bonus appeared first on BitcoinChaser.

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Bitcoin Chaser – April 22, 2021

Bitkingz Casino Exclusive Bonus

Bitkingz casino is a crypto and fiat casino. The casino offers over 4000 casino games. Online slots are the most popular vertical, and you’ll find offerings from providers such as BGaming, Betsoft, Endorphina, Playtech, and Yggdrasil. 

Bitkingz has a mobile version available on most devices, and it is licensed and registered by the government of Curacao. Are you looking to get more bang for your buck? Well look no further! Head over to Bitkingz Casino for a BitcoinChaser exclusive promotion. 

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Bitkingz offers 24/7 online support and a cast array of tournaments and promotions. Dive into Bitkingz Casino today and get the most out of your gambling experience! 

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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://bitcoinchaser.com/bitkingz-exclusive-bonus/

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RIT Capital Partners acquires a stake in crypto exchange Kraken.

According to the official announcement, RIT Capital Partners invested in the crypto exchange Kraken last month. The British investment firm described Kraken as one of the largest cryptocurrency exchanges worldwide, with more than 6 million clients. Kraken has seen a surge in cryptocurrency trading volumes during the last few months. The crypto exchange is also reportedly […]

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According to the official announcement, RIT Capital Partners invested in the crypto exchange Kraken last month. The British investment firm described Kraken as one of the largest cryptocurrency exchanges worldwide, with more than 6 million clients. Kraken has seen a surge in cryptocurrency trading volumes during the last few months. The crypto exchange is also reportedly planning to go public in 2022 through a direct listing.

“Kraken is currently in talks with investors about another round of fundraising.”

“Kraken is currently in talks with investors about another round of fundraising that could give it a valuation of $20bn. Talks have been held in discussions with Fidelity, Tribe Capital, and General Atlantic. Kraken CEO Jesse Powell said this is being delayed in order to evaluate how Coinbase’s IPO performs. Kraken has a strong balance sheet, and the company is not in a rush to raise capital,” the official announcement states. Kraken is not the only cryptocurrency exchange that is planning to go public for global expansion; several other crypto exchanges are eying IPO in the coming time. 

Coinbase went public via a direct listing on Nasdaq last week. 

The US-based crypto exchange went public last week and received a reference price of $250 for COIN shares. The shares of the crypto exchange touched an all-time high of approximately $420 on its debut but saw a correction later. COIN stock closed at $311 yesterday. As reported earlier, Coinbase CEO Brian Armstrong sold 749,999 COIN shares worth nearly $292 million last week. The US-based crypto exchange saw nearly $335 billion in trading volumes during the first three months of 2021. The crypto industry has garnered a lot of mainstream attraction in the last year or so. Coinbase getting listed on Nasdaq is being hailed as a major milestone for the crypto industry. 

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://coinnounce.com/rit-capital-partners-acquires-a-stake-in-crypto-exchange-kraken/

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