[New Crypto Rumor in China] Bitcoin Core Hopes to Stop “Halvening” of BTC to Add to Fixed Supply

When Bitcoin was originally created, Satoshi Nakamoto chose to make a limited supply of tokens with an entire whitepaper of other rules. One of the …
[New Crypto Rumor in China] Bitcoin Core Hopes to Stop

When Bitcoin was originally created, Satoshi Nakamoto chose to make a limited supply of tokens with an entire whitepaper of other rules. One of the other rules that is coming up again slowly in Bitcoin is a process called halvening, but Jiang Zhuoer of Bitcoin Core wants to get rid of that process.

Zhuoer, founder of the BTC Top crypto mining, said that his Weibo post on February 10th that the goal of the Bitcoin Core development team is to increase the current supply of Bitcoin, which is presently at 21 million coins. Furthermore, the halvening process that lowers the reward for miners is yet another aspect of Bitcoin that Zhuoer aims to change.

The developers at Bitcoin Core are dedicated supporters of the original protocols that Satoshi set up for Bitcoin. They have remained in favor ever since August 2017 when the Bitcoin network last forked.

Zhuoer said, “This is a long-held plan for Bitcoin Core camp to increase bitcoin supply, and now they just try to know the bitcoin community’s response to it by sparking the debate.”

At the time, Zhuoer included that the development team would continue to encourage others to follow their lead.

He spoke on how he had known the plan for Bitcoin Core to establish these changes, though he had doubts about how the changes would actually be implemented. Luckily, the developers have been making fast progress on the change with experiments involving Grin and discussing the topic at Satoshi’s Roundtable.

The information is not often released to the public regarding what happened during Satoshi’s Roundtable, but founder of Fold, Matt Luongo, attended the meeting and reported back on Twitter. He stated,

“I was the guy that said we might have to one day raise the Bitcoin supply cap. Fight me.”

Much of the reason that Bitcoin Core developers are in favor of the increased supply cap and stopping halvening is due to the changes that it will make in the censorship resistance of Bitcoin, improving it substantially.

Zhuoer says that the current resistance to censorship makes it a requirement to have smaller blocks, which inhibits scalability. If this halving event continues even one more time, the revenue that miners make will dwindle, and fewer miners will remain active in their validation of blocks. With fewer miners, the speed of the whole network slows down and will become a potential target for 51% attacks.

The only way to keep miners profiting is with the stopping of the halvening process. However, if the fixed cap is removed and the halvening ends, investors that hold Bitcoin would likely see a substantial drop in their own holdings and profit. While Zhuoer has expressed that the changes to the Bitcoin network do not elicit any reaction from him, he was adamant about leaving the fixed supply where it is.

Considering that the halvening is still about a year away, Zhuoer does not think there will be security issues on the blockchain right now. However, there is much to be seen in the network’s changes after the halvening occurs, if at all.

Bitcoin (BTC), Ethereum (ETH), XRP (Ripple), and BCH Price Analysis Watch (Feb 12th)

Bitcoin Core Aims to Solve Limited Supply and Bitcoin Halvening Problems

The bitcoin core development team is a big fan of the original software introduced by Satoshi Nakamoto which was in use before the Bitcoin …

Feb 12, 2019 11:45&nbspUTC

| Updated:

Feb 12, 2019 at 11:45&nbspUTC

By&nbspPrashant Jha

During the recent Satoshi roundtable event, the cry for increasing the limit of Bitcoin was addressed by Jiang Zhuoer, the founder of prominent cryptocurrency mining pool BTC. The founder wrote on his weibo page that the next goal for the Bitcoin core members is to increase the upper limit of 21 million total supply and halt Bitcoin halvening.

The bitcoin core development team is a big fan of the original software introduced by Satoshi Nakamoto which was in use before the Bitcoin blockchain hard forked into bitcoin cash.

Jiang noted,

“ This is a long-held plan for Bitcoin Core camp to increase bitcoin supply, and now they just try to know the bitcoin community’s response to it by sparking the debate,”

The Satoshi Roundtable Conference and Major Topics of Discussion

The roundtable conference which commenced last week was not covered by the media, however, apart from Jiang, Matt Luongo, the founder of Fold was another participant and the one who put out the question of increasing the limited supply cap.

Jiang in his post on weibo says that he was aware of the Bitcoin core team’s plans of working upon increasing the supply of total Bitcoin. However, he was not certain if this massive plan would be put to trial or executed.

The Bitcoin core team has made some significant progress in the initial testing phase where they have conducted a ‘no deflationary halving on the Grin experiment,’ After Matt came out on Twitter claiming that he was the one who initiated the increase of supply chain topic on Twitter, the whole crypto space broke into a debate on the same topic.

Jiang acknowledged the revelation made by Matt and called him the mouthpiece of the Bitcoin core development team in the round table conference.

What Could Be the Possible Impact of Increasing the Bitcoin Supply?

Jiang believes that increasing the supply limit of Bitcoin could help it in establishing the pioneer cryptocurrency as a true censorship resistance form of asset, which was the main aim behind the formation of Bitcoin.

In order to be a true censorship-resistant currency, the block size of the currency should be small and if the supply limit is not increased, the Bitcoin halvening would continue, in order to counter the scalability woes.

In the currently limited supply scenario, the 1MB block size limit might affect the mining revenues to a great extent. With lower block rewards, people might opt against the mining process and the ever-lingering bearish market only adds to the cause. Jiang is worried that, if the block reward continues to lessen people will eventually opt against the mining. The lesser hash rate input due to the scarcity of miners can expose the Bitcoin network to 51% attack.

However, Jiang is looking at the other side of the spectrum as well and thinking from an investor perspective, stopping the Bitcoin halving and increasing the fixed supply could dilute the value of investors holding.

Jiang concluded that he does not care much about the Bitcoin core developers initiative on the main Bitcoin network as long as they are not increasing the supply limit of Bitcoin cash.

Prashant Jha

As a content writer Prashant believes in presenting complex topics in simple laymen terms. He is a tech enthusiast and an avid reader.

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