Having Of Block Putting Bitcoin At Significant Risk?
A process called mining occurs at the root base of Bitcoin trading company. This part of the process involves adding transaction records to the ledgers respectively. This ledger is made up of blocks of transactions which are usually linked in the form of a chain, thus creating the highly essential block chain.
To enable the validity and proof of the work being done on individual blocks, there is an excellent system by the name of hash cash which is being followed by bitcoin effectively. This particular specialization is designed to meet the specific design criteria for the same and is highlight resource intensive in the like.
Moreover, the difficulty level also top the pillar hence the miners are paid a significant incentive to keep the normal and smooth flow of the transactions and their corresponding records. This exquisite allocation of block reward to the miners pays off the subsequent transaction amounts. With the increase in the number of users and transactions, the blocks tend to complete with the highest transaction fees being at the top of the stack accordingly as such.
However a proposal to reduce the reward to the miners which is preoccupied to take place in the month of July has set the doubts in the minds of the miners likely. With the miners leaving the premises and the corresponding occupation, bitcoin risks a high fear of downward price movement.
However this is not as yet confirmed to the recent cases of the same in the past years of 2012 and 2013. Estimates suggest that if the price before halving is $600 miners can successfully earn the same amount of reward as the amount earned for price at $300. This hash rate has suggestively increased to around 78 percent in the year 2015.
Alternatively, this defeats the raising concerns of bitcoin craving a kind of significant risk of downfall in case of any halving of block reward for the miners accordingly.