Bitcoin production halved cloud computing power
2020 is the first year of digital currency proction rection. Most currencies will achieve the first proction rection this year, while bitcoin will usher in the third proction rection cycle. And the market is generally high on the halving market, it is expected that this year will usher in a wave of bull market, and the logic behind it is very clear. From the perspective of historical experience, this has already formed a more extensive "consensus" in the circle of cryptocurrency
secondly, bitcoin, known as "digital gold", is recognized by more and more funds for its risk aversion, which indirectly pushes up its price. At present, in addition to bitcoin, which has the most influence, BCH, BSV, etc, dash and other currencies are the most concerned. Dozens of counterfeit currencies have chosen to be halved in 2020. Therefore, 2020 is also known as the first year of halving
what is half bitcoin
bitcoin halving means that the reward for procing new blocks is halved about every four years. This means that after halving, the corresponding bitcoin reward for each block proced is only half of the reward before halving. At present, bitcoin has been halved twice, respectively in November 2012 and July 2016. The third half of bitcoin is expected to take place on May 13, 2020. By that time, bitcoin will be halved from 12.5 blocks to 6.25 blocks
half block reward means that it will take longer for all bitcoins to enter circulation, but it also means that mining will proce fewer and fewer new bitcoins. Moreover, e to its limited supply and increased mining difficulty, its scarcity attribute becomes more and more obvious, and scarcity will directly enhance the value. As the saying goes, scarcity is more expensive! For bitcoin, there is no doubt that this is a very big advantage
buying bitcoin in 2020 is better than buying bitcoin ETF fund
3, bitcoin current price 10000x4 = US $40000 (expected price after this year's proction rection)
in this period, the return comparison between holding spot and ETF fund is as follows:
1, buying spot holding, earning three times
2, buying ETF fund, Up to 15 times (intelligent position adjustment + fund compound interest calculation)
there is no doubt that bitcoin ETF launched by bitoffer is the best investment choice
1. With the increase of computing power in the whole network, the proportion of computing power owned by miners in the whole network decreases
2. The generation of bitcoin is slowing down. When bitcoin was born in 2009, each reward was 50 bitcoins. Ten minutes after its birth, the first 50 bitcoins were generated, and the total amount of money at this time is 50. Then bitcoin grew at a rate of about 50 every 10 minutes. When the total amount reaches 10.5 million (50% of 21 million), the bounty will be halved to 25. When the total amount reached 15.75 million (5.25 million new output, or 50% of 1050), the bounty was further halved to 12.5. In theory, bitcoin's mining speed has halved in four years.
for ordinary investors, the most important thing is the price of bitcoin. Does the rection of bitcoin proction next year mean that the price of bitcoin will rise significantly? In fact, from the trend of bitcoin after the first two proction cuts, we find that bitcoin will usher in a super market soon after each half cut. Proction rection can indeed stimulate the price of bitcoin to rise substantially. It is no exaggeration to say that bitcoin halving is an important catalyst to push bitcoin into a super bull market
in addition to ordinary investors, there is a group of people who are quietly paying attention to the price of bitcoin, that is miners! Nowadays, mining costs are rising, coupled with the competition for computing power, currency price fluctuations and other reasons, resulting in the extremely unstable income of miners. In addition, it should be noted that in 2020, with the rection of bitcoin proction and the new upgrading of mining machinery, the cost of mining will be even higher. If the price of bitcoin falls below the cost of mining, the high cost will make the miners have to shut down, resulting in the loss of investment in mining machinery, and finally lead to mine disaster
How do put options hedge the risk of bitcoin falling
recently, bitoffer is the world's first BTC option, which has no margin, no handling charge and no exercise, so it is the most suitable tool for hedging bitcoin spot risk
for example, the current price of bitcoin is $7000. If it goes up to $8000, you can make a profit of $1000 from the spot
What if it falls to $6000? You did not do any hedging, spot direct loss of $1000
if you hedge accordingly and open a put option in bitoffer, the cost will be about US $20-50. If bitcoin falls from US $7000 to US $6000, the put option will earn US $1000. In this way, the US $1000 of spot loss will be offset, and there will be no loss in the account. This is the charm of hedging.
on November 28, 2012, BTC was halved for the first time, from $2.01 to $1178, an increase of nearly 600 times
on July 10, 2016, BTC halved for the second time, from $163.65 to $19800, an increase of more than 120 times
BTC is expected to halve for the third time in May 2020.
for reference only, it has no practical significance. After all, I don't count.