Bitcoin annual inflation rate

1.

bitcoin network generates a new block every ten minutes. Every time a miner completes a block, he can get a certain amount of bitcoin as a block reward, and the reward will be halved for every 210000 blocks mined. Because the time for mining each block is limited to 10 minutes, at this rate, the period for the reward to be halved is four years, that is to say, the reward for bitcoin blocks is halved every four years

when the bitcoin block reward was halved for the first time, its price rose 25 times from 300 yuan to 7995 yuan; In the second half, the price rose 28 times from 5011 yuan to 140000 yuan. So many people predict that the third halving of bitcoin in May 2020 will lead to a sharp rise in the price of bitcoin, at least 10 times. However, these figures are not so clear. After halving in 2012, bitcoin prices rose for two months, and in 2016, there was almost no immediate response to deflation for a month. This may also be the result of the strategy of "buying rumors and selling news" implemented by some speculators

extended data:

after bitcoin halved, the supply slowed down, and keeping deflation through algorithm has always been a part of bitcoin protocol design. It was set up to ensure the value of bitcoin. By recing block incentives and setting the maximum possible supply of bitcoin at 21 million bitcoins, bitcoin has an anti inflation feature, which runs counter to the tendency of central banks to print money at will. At present, there are about 17.5 million bitcoins in circulation, and less than 3.5 million bitcoins are available for mining. When the next block award halves, bitcoin's annual inflation rate will drop from the current 3.8% to about 1.8%

maintaining deflation through algorithms has always been a part of the design of bitcoin protocol. It was created to guarantee the value of bitcoin. By recing block incentives and keeping the total amount of bitcoin at 21 million bitcoins, bitcoin is endowed with an anti inflation nature, which is different from the tendency of central banks to print money at will. At present, there are about 17.5 million bitcoins in circulation and less than 3.5 million available for mining. The next block award cut in half could rece bitcoin's annual inflation rate from the current 3.8% to about 1.8%. This will be the first time in bitcoin's history that it has fallen below the historical average of about 2% - 3% growth in gold supply

2. In Keynesian economics, inflation caused by moderately issuing money in the short term can moderately promote the economy. 2. Money is an important source of Finance for the country. Government expenditure needs to be financed, including taxes, bonds, etc. Generally speaking, there will be a lot of opposition to more taxes. It is difficult to pass a tax policy. If the government can't borrow money from bonds, it is also very troublesome to issue money to raise money for the government, In fact, this makes the residents' currency devalue and levy inflation tax in disguised form. But now the government knows that the cost of hyperinflation is very high, and it is very cautious to use this function. 3. To promote proction, generally speaking, if there is a technology shock that reces the proctivity of workers, the real wage needs to be reced, but if the nominal wage is directly reced, the workers will strongly oppose it, But for example, if 5% inflation gives 3% nominal wage growth rate, the real wage will be reced by 2%, which not only realizes the wage rection, but also makes the workers psychologically easy to accept

3. In the long run, the current price of bitcoin is still at a low level. With the increasing demand for bitcoin from investors in the world and the limited total amount of bitcoin, its price will also be higher and higher. Therefore, it is suggested that if there is spare money, you can invest a little. Maybe after retirement, it will be a sum of money for the elderly

from the moment bitcoin proced value to the sky high price of nearly $20000 gold, bitcoin rose by tens of thousands of times ring this period, which also created a lot of people's freedom of wealth. Most investors love and hate bitcoin. They love speculative property, and they have no limit to the rise and fall. They hate to be unable to analyze the market and make profits in the market

so why is it still suitable to buy bitcoin in 2020

1. The third proction rection

in May, bitcoin reced its proction for the third time. Under the hype of the proction rection market, the third proction rection of bitcoin brought confidence to most investors in the market, but the price did not change significantly

judging from the market, bitcoin is leading the rise of other financial procts under the same conditions. It dropped to $3800 in March, and then rose all the way to about $10000, walking out of the V-shaped reversal

the V-shaped reversal is not easy. After all, the previous market had to be sorted out for several months before going up. This also illustrates the purchasing power of bitcoin in the market

moreover, after halving, the amount of bitcoin g up by the miners has graally decreased. In addition to the lost bitcoin, there are not many bitcoins in circulation in the market, and the bitcoin market is a market brought about by demand. With many external factors, many investors want to use bitcoin for risk hedging, and the liquidity of the market is expanding step by step<

2. Institutions bought a lot

after halving, gray alone increased its holdings of 18910 bitcoins, while after halving, the miners only mined 12337 bitcoins, indicating that the number of gray holdings increased was 150% of the total mining amount of miners in the same period

in addition to institutions, some celebrities have also publicly expressed their desire to buy bitcoin. For example, the author of "poor dad, rich dad" tweeted the reason why he wanted to invest in bitcoin. Before that, he repeatedly said that with the continuous release of water from the Federal Reserve, bitcoin may become a good hedging tool to deal with the current financial crisis

with the entry of specialized institutional teams, bitcoin has been known by more and more people, and its value has also been understood by more and more people< 3. Bitcoin leads the global financial asset growth

the secondary market of bitcoin is huge, with the number of new addresses and active addresses increasing every day. There are many people who know about bitcoin but don't enter the market

the massive entry of foreign institutions leads to the concentration of some chips. In this process, it is not only the transfer of chips, but also the transfer of price rights.

4. Let's briefly explain bitcoin. Bitcoin is a kind of "electronic currency", which is composed of a series of complex codes generated by a computer. New bitcoin is manufactured through preset programs. With the increase of the total amount of bitcoin, the speed of new coin manufacturing slows down. There is a strict constraint on bitcoin, that is, the maximum amount of bitcoin is only 21 million. Due to the 21 million restrictions, bitcoin has been used to fight against inflation. Since the 2008 financial crisis, central banks around the world have implemented extremely loose monetary policies in order to stimulate the economy. Throughout the next 5000 years, there has been no interest rate lower than those in recent years
his price is influenced by external factors.

5. You can sell usdt on huoyuan.com, and if someone buys it, you can transfer RMB directly to your account.

6.

For this bitcoin, we all have a certain influence on it< because bitcoin has a group of people investing in 2021, it is in a very good state as a whole, which makes many people feel that bitcoin is a very good choice so they will choose to dig bitcoin at this time. We can also understand the occurrence of this event, because for many young markets, they still make us feel very good when facing this kind of thing, so what I don't understand is that nearly 20% of Internet cafes in South Korea choose to mine at this time, We all understand this, because bitcoin itself belongs to virtual currency{ RRRRR}

so this tells us that many people do not keep a good attitude in the process of choosing bitcoin, which will naturally have a very bad impact on us at this time