BITCOINZ FIRST HALVING
What is so special about mining BITCOINZ ?
BITCOINZ is the most fair cryptocurrency network ever, with no premine, no ico sales and no instamine period. This means that there is equality for everyone who wishes to support its network. Since the whole supply of the BITCOINZ cryptocurrency is distributed to the Community and not to any developer, founder or company. Besides BITCOINZ has no CEO or company behind it. Anonymous founders launched it as a gift to the world and its development is achieved by volunteers.
Why BITCOINZ was so much needed ?
BITCOINZ is the oldest “BITCOIN” named project that is not another bitcoin blockchain fork. It never gave any forkdrops to Bitcoin like so many other projects did just for easy exposure and speculation, benefiting only a few elites.
BITCOINZ used the name of the “BITCOIN” because it honours the pure cryptocurrency idea that the legendary BITCOIN expressed: a 100% Proof of Work Project that would offer free borderless transactions without the need to trust third parties like a Bank. However BITCOINZ was needed because :
2) it provided high supply and next to zero ultra low fees
3) it offered scalability and high speed
4) importantly : it offered a fair Proof of Work network to the world community again with its ASIC resistant mining algorithms. The ASIC miners had already dominated the Bitcoin and the most Proof of Work networks that gave up switching to new algorithms. This way a PC owner was unable to participate in the mining procedure. BitcoinZ is a great exception to this situation because it implemented ASIC resistant algorithms. This way it protects the PC miners, giving them the opportunity to gain meaningful mining rewards by joining its network.
5) its decentralized development model gave countless innovative features and partnerships. In addition, it is the first cryptocurrency community that is truly open, friendly and full with helpful people. Not with speculators and fraudulent “devs” like so many shady projects out there. The BITCOINZ Community pioneered with the Cryptospedia project, offering a true opportunity to every newcomer who wish to be educated about the world of cryptocurrencies: Cryptospedia is an online free encyclopedia, made by crypto enthusiasts that explains every cryptocurrency definition with simple examples and describes all the potential dangers of the Cryptospace.
What exactly is a mining reward ?
Who decides for the block reward’s value?
The block reward is predefined for each cryptocurrency network and usually it is not stable for the lifetime of the network.
This happens for inflation reasons, since each digital coin has a different maximum supply of coins and a different set of rules.
The circulating supply, aka the coins that are available in the market at the moment, come from a specified rewards plan. This plan describes the number of coins that are rewarded to the miners for each block (called emissions as well) and the future changes of these rewards. The changes are taking effect after a certain number of time which is equal to a certain block height.
The most usual scenario of the reward’s change is their reduction, typically cutting them to the half. This is what we call “halving” , because Bitcoin used this model.
But what is the meaning of a mining rewards halving? This usually happens as a hedge against inflation over time. Since the price, guided by price equilibrium, is bound to increase. On the flip side, fiat currencies (like the US dollar), inflate over time as its monetary supply increases, leading in reality to a decrease in purchasing power. This is known as monetary debasement by inflation. An example for this can be seen by just comparing the housing prices before some decades and today. In contrary, assets that have a finite or reducing supply, are resistant to this phenomenon and are considered deflative. BitcoinZ has a predefined finite maximum supply . Additionally it has a decreasing pace for the release of the new coins with the mining procedure. So we are speaking for exactly the opposite model of what happens with FIAT money as the central banks “print” more and more of them over time.
BitcoinZ’s halving plan
Like the legendary Bitcoin, BitcoinZ has a same halving reward approach (every 4 years) , was launched on September 20017 with 12,500 BTCZ coins as block reward with block time of 2,5 minutes.
About 4 years later, after the block height 840000, it is going to have its first halving. This means that there will be a 6,250 BTCZ coins reward for the next 4 years. Then, at block number 1680000, the reward will be reduced to 3125 BTCZ coins per block and so on.
The importance of a fair and slow halving plan
It is very important to understand the role of a well balanced halving plan for the block rewards of a digital coin. A digital coin with no halving plan would face inflation issues because the coin supply in the market would be endless. On the other hand, a plan with ultra fast halvings in a few months is usually a speculative trick . This “model” is extremely popular among the various cryptocurrency scams.
Fast and unbalanced halving plans : a high possibility scam
There have been cryptocurrency projects with their block rewards cut to half again and again in just a few weeks or even days ! Under such circumstances, the miners who know about the project, and join immediately its network, are enjoying huge block rewards while any future miner is condemned to be rewarded with just a small fraction of the reward.
Usually, the founders of projects with fast reward halvings are targeting to a massive sell-off. Since their easy to obtain “assets”, during the first period with the great mining rewards, are the lion’s share of the whole circulating supply.
This way, they can easily “pump” the price of their project with some tricks in order to technically increase the demand. Then they are selling their coins with the inflated prices before jumping to their next project that will be again under their full control and plan their next scam exit.
This is why the really Community Driven Projects with fair coin distribution are always much more transparent and resistant to such scam scenarios. Simply because there is no governor or founders ‘beneficiaries’ who by default own any major supply of the coin supply.
You can read some golden tips in order to protect yourself from cryptocurrency frauds here.