BITCOINZ HALVING COUNTDOWN
The first BITCOINZHALVINGCountdown has begun! The TOPCommunity Drivenand 100%PoWcryptocurrencyhas its firstmining rewards‘halvingsoon!
BITCOINZ FIRST HALVING
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What is so special about mining BITCOINZ ?
BITCOINZ is the most faircryptocurrencynetwork ever, with nopremine, noico salesand noinstamineperiod. This means that there isequalityfor everyonewho wishes to support its network. Since thewhole supplyof the BITCOINZcryptocurrencyis 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 isnotanother bitcoinblockchain 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 Projectthat would offer free borderless transactions without the need to trust third parties like a Bank. However BITCOINZ was needed because :
it added optionalprivatetransactionswithZK-Snarks cryptography
it provided highsupplyand next to zeroultra low fees
it offeredscalabilityandhigh speed
importantly : it offered a fairProof of Worknetwork to the world community again with itsASICresistantmining algorithms. TheASICminers had already dominated the Bitcoin and the mostProof of Worknetworks that gave up switching to new algorithms. This way a PC owner was unable to participate in theminingprocedure. BitcoinZ is a great exception to this situation because it implementedASICresistantalgorithms. This way it protects the PC miners, giving them the opportunity to gain meaningfulmining rewardsby joining its network.
itsdecentralized developmentmodel 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 theCryptospediaproject, offering a true opportunity to every newcomer who wish to be educated about the world of cryptocurrencies:Cryptospediais an online free encyclopedia, made by crypto enthusiasts that explains everycryptocurrencydefinition with simple examples and describes all the potential dangers of the Cryptospace.
What exactly is a mining reward ?
The whole procedure of finding the nextblockin a cryptocurrencyblockchain, is calledmining.
Who decides for the block reward’s value?
The block reward is predefined for eachcryptocurrencynetwork and usually it is not stable for the lifetime of the network.
This happens for inflation reasons, since each digital coin has a different maximumsupplyof coins and a different set of rules.
The circulatingsupply, 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 eachblock(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 certainblockheight.
The most usual scenario of the reward’s change is their reduction, typically cutting them to the half. This is what we call “halving” , becauseBitcoinused this model.
But what is the meaning of a mining rewardshalving?This usually happens asa hedgeagainst inflationover 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 maximumsupply. Additionally it has a decreasing pace for the release of the new coins with theminingprocedure. So we are speaking for exactly the opposite model of what happens withFIATmoney as the central banks “print” more and more of them over time.
BitcoinZ’s halving plan
Like the legendaryBitcoin, 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, atblocknumber 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 awell balanced halving planfor theblock rewardsof a digital coin. A digital coin with no halving plan would face inflation issues because the coinsupplyin 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 beencryptocurrencyprojects 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 enjoyinghugeblock rewardswhile any futuremineris condemned to be rewarded withjust a small fractionof the reward.
This leads to extremecentralizationin the level of the digital coin distribution and this is something that goes against the originalcryptocurrencyidea.
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 wholecirculating 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 reallyCommunity DrivenProjects 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 fraudshere.