Author: Ferdinando M. Ametrano 2014-10-28 20:17:58
Published on: 2014-10-28T20:17:58+00:00
In October 2014, a discussion ensued on the potential impact of the upcoming Bitcoin halving. One participant believed that the previous halving had been a non-event and questioned if there was any reason to believe the next one would be different. Another participant pointed out that Bitcoin was much younger in November 2008 when the first halving occurred and had less liquidity and trading, a smaller market cap, and happened during a stable positive price trend. The same participant warned that competition might drive down mining margins and generate unexpected disruptions in mining operations. Furthermore, the participant suggested that the halving was not strictly necessary to respect Nakamoto's monetary rule and its 21M limit. At the beginning of the third reward era (block 420000, in 2017), a new reward function could become effective to calibrate the parameters h and k so that R(419999)=25 and sum_b{R}=21M. If the increased issuance speed in the third era is considered problematic, then each era could have its own R_e(b)=k_e*2^(-h_e*b/210000) fitted to the amount of coins to be issued in that era according to the current supply rule. The participant questioned whether this BIP would have any chance to be considered and asked if they were missing something. A chart was attached to the email showing the historical block size and height of Bitcoin.
Updated on: 2023-06-09T03:29:47.896307+00:00