Bitcoin Halving Policy, Not As Bad As Community Thinks
In the near future, a point will come which will change the future of Bitcoin. The number of bitcoins awarded for successfully creating a new block will be halved, from 25 to 12.5. This new change, is neither a new thing not a surprise but it is sure to have lasting effects whether good or bad is not yet known.
When Satoshi Nakamoto, the code writer for Bitcoin wrote the original code, wrote it to address the problems faced with government issued currency. The continued issues resulted in the devaluation of the currency. It has very less chance of getting altered as it is an essential part of Bitcoin’s existence and its algorithm.
It might have some negative results as well, as miners can shut down the operations which will decrease the activity of miners or the restriction on supply will be a reason for increase in price which will make continued operation very profitable.
Since Bitcoin doesn’t keep any records, the task falls in the hands of miners. With this comes a risk known as 51% attack. This means that a miner controls 51% of issuance and could manipulate the records as the way he wants according to his will. It also means he can steal away all the bitcoins.
It needs to come to light that if the halving of coins takes place without a price increase, we can come close to facing the 51% situation which would rapidly decrease the popularity and consumer’s confidence in Bitcoin.
The same thing which happened in 2012 should happen again. Back then, the coins were halved, there was some loss of production and a little increase in price which cleared the path of sustained increase of price over time. It was very easy to mine coins after that change. There was no risk of 51% attack as the computing power needed was less along with the barriers for entry of miners being low.
Even though halving the number of coins sounds bad for the Bitcoin users, it is actually more beneficial to the holders as well as the community. It is once again sure to prove that Satoshi Nakamoto was wiser than the rest and had a vision for bright future.