Bitcoin Diamond BCD: Block Reward Halving
The team behind Bitcoin Diamond has
recently received a lot of enquiries about the upcoming block halving
event and we would like to clarify and provide some insight about the
What is a halving? Why is it a Necessary system?
In short a halving event is a method to refine the value of a cryptocurrency by reducing the amount of coins gained via each block BTC (12.5 to 6.25) and with Bitcoin Diamond (125 to 62.5).
By reducing the amount of new coins found with each block the current circulating supply gains more value, this system is in place to help future scalability as mass adaptation would limit decentralization if said currency was too easy to obtain.
For an example that shows this system works, when Bitcoin first started anyone with a laptop or personal computer could mine a few a week if not more. Adoption was low and the value was only around one cent since it was such an easy commodity to acquire, once popularity started to grow around Bitcoin it became much harder to obtain due to increased mining efforts in the community thus increasing the value. This ideology also works in halving, making the required asset harder to acquire; increasing the value of all current coins in circulation and rewarding early adopters. These price increases also encourage trading and new users to join in on adaptation to acquire the asset before it becomes too hard to personally obtain via mining or other methods. In short the upcoming halving is not an event to be feared but instead celebrated since it rewards early investors and helps promote growth and widespread adoption, it’s a system that will help Cryptocurrency extend well into the future.
When will the Halving happen?
Bitcoin Diamond will follow suit halving at block 630,000 mimicking Bitcoin, which is estimated to happen on the 18th of May, Bitcoin diamond will halve two months later due to Hashrate differences between the two separate coins and other factors, We estimate Bitcoin Diamond will halve on the 29th of July.
We believe 2020 will be the year of change, widespread adoption is just around the corner and the team behind Bitcoin Diamond will strive to be on the forefront of mass adaptation that will not only benefit our current community members but all future user’s that choose to use Bitcoin Diamond.
The cryptocurrency mainnet operates according to certain rules. To improve network performance or correct errors, it is periodically made changes. A hard fork is changes that are not compatible with previous versions of programs that support the cryptocurrency network and in order to continue to mine cryptocurrency, miners need to update the software.
In some situations, as a result of a hard fork, a completely new cryptocurrency may appear, as happened with Bitcoin Cash.
Decreasing a block reward means that miners supporting the cryptocurrency mainnet will receive a lower reward for found block. Typically, the block reward is halved and leads to a decrease in cryptocurrency emission, which can positively affect the growth of its value.