Halving Of Bitcoin Results In Helping Business Of Peercoin
The mining of the Bitcoin is best viewed as a speculative endeavor. Electricity taken by the Miners and turned into the bitcoin with a hope that a profit can be generated, when the producing cost of the digital currency is lower than the spending amount. If they can’t, they will two options-one is to begin mining another digital currency or they can shut their equipment. Many of the miners choose this very choice due to the recent bitcoin halving.
Some of them made the smart choice rather than abandon their machinery, they started to mining a new cyptocurrency known as Peercoin. Peercoin was launched in 2012 and uses a similar hash function as the bitcoin. The Researcher Adam Haynes explains that the network hashrate of the peercoin surges from the 500 terahashes per second to 6,500 TH/s after the halving of bitcoin.
Why Peercoin gets the boost?
The approach of the peercoin towards the mining has created new economic edge for the miners. Proof of stake is used by the peercoin in order to secure their network, whereas the bitcoin uses a process known as proof-of-work. In this type of model, the users of the peercoin can verify the transactions on the network. The more peercoin held by the user, the importance of verification will be increased for the network.
The main argument in the peercoin is that it incentivizes the users to save it rather than spending it. Although there is still a network of miners having responsibility to create new peercoins for the circulation in this network. It is not like bitcoin who have a predictable release schedule because the schedule of the peercoin is more fluid and releases its coins at a rate depending on the difficulty of the network.
It clearly means that fewer rewards will be offered by the network, the more is the difficulty level to mine.