The 10 Incredible Guarantees the Bitcoin Protocol Gives You in a World More Uncertain Than Ever | by Sylvain Saurel | Dec, 2021

The 10 Incredible Guarantees the Bitcoin Protocol Gives You in a World More Uncertain Than Ever | by Sylvain Saurel | Dec, 2021

Bitcoin was launched on January 3, 2009, with a maximum quantity of BTC set at 21 million. This limit has never changed, and will never change. For it to change, more than 51% of the network would have to go in that direction.

This is highly unlikely because no one has an interest in making Bitcoin less scarce than it is. This 21 million BTC limit is an incredible force that can be measured even better since Mars 2020 by seeing that the M2 Money Stock exploded in a few months to over 20,900 billion dollars. More than 35% of the U.S. dollars currently in circulation have been printed in the last eighteen months.

New Bitcoin is issued each time a new block of transactions is successfully added to the Bitcoin Blockchain. To control this issuance over time, Satoshi Nakamoto has designed the Bitcoin so that a block is issued on average every 10 minutes.

This average delay is a target that allows for the inflation of the supply of new Bitcoins over time to be predicted in advance.

Bitcoin’s Hash Rate has been steadily increasing over time. So that the average 10-minute delay between the issuance of each block can be best respected over time, an adjustment of the difficulty to mine new blocks takes place on the Bitcoin network every 2,016 mined block.

Every two weeks on average, the mining difficulty is therefore automatically adjusted. All this is done fully automatically. Everything is written in the Bitcoin source code. No human decision is involved in this process.

The final technical element essential to the control of Bitcoin’s monetary policy is the reduction of the reward for miners who correctly validate a block of transactions.

For every 210,000 blocks mined, this reward is halved in a process called Halving. The last one took place on May 11, 2020, bringing the inflation of the supply of new Bitcoins down to around 1.8%.

At block height 840,000, the fourth Bitcoin Halving will take place. The reward will again be halved from 6.25 BTC to 3.125 BTC.

Taking into account a block issued on average every 10 minutes, we will go from 900 BTC issued every day to 450 BTC. Bitcoin will officially become the scarcest asset in the world with an annual inflation rate of 0.9%.

The essential guarantee here is that Bitcoin’s monetary policy is programmatic. Everything I have just described will happen as planned no matter what happens in the future.

At the heart of the Bitcoin Blockchain is its consensus algorithm based on the SHA-256 cryptographic function. Its algorithm is better known as Proof-of-Work. Since the creation of Bitcoin, it is always the same algorithm that allows the network to function properly.

Proof-of-Work is often criticized because it is very resource-intensive.

In reality, it is an incredible strength for Bitcoin. Few people understand it, but the fact that Bitcoin consumes so much power is what gives so much value to the Bitcoin issued.

The higher the Hash Rate of the Bitcoin network increases, the more difficult it is to mine, the more secure the Bitcoin network is, and the more valuable each unit of Bitcoin is. It’s as simple as that.

Bitcoin is a unique invention. It is a monetary revolution based on disruptive technology: the Blockchain. Without Bitcoin, the Blockchain is nothing more than another data storage technology.

Without the Blockchain, Bitcoin cannot work. This dual dependency is essential.

With its decentralized network, Bitcoin is unique. It will remain a separate species in a future world where everything will be digital. In September 2020, the Bitcoin network broke another Hash Rate record confirming that it is the most secure decentralized network in the world.

When you buy Bitcoin, you can be sure that your wealth is safe because of the power of this network.

Unlike the banking system, which is only open 5 days a week during restricted hours, Bitcoin is always available. You can make transactions on the Bitcoin network at any time 24 hours a day, 7 days a week, 365 days a year.

Since its creation, the Bitcoin network has had an uptime of 99.985%, which has nothing to envy to those of Web giants such as Google or Facebook.

Such availability is exceptional because Bitcoin has never received financial support from governments or private investment banks. Bitcoin owes its success solely to its users who are convinced of the importance of participating in the construction of a fairer world for tomorrow by supporting its network daily.

This permanent availability is a strength that will allow Bitcoin to become the standard for Generation Z and Generation Alpha.

No matter how much its opponents dislike it, Bitcoin has never been hacked. The hacks that have occurred in the Bitcoin world have generally involved trading platforms.

The Bitcoin network has never been hacked. This is essential to reassure future users who will come to buy Bitcoin to protect their wealth from the effects of the great monetary inflation.

Bitcoin is an open ledger. Anyone can come and consult all the transactions that have been made on the Bitcoin network since its official launch. Every transaction recorded on the Bitcoin Blockchain is immutable.

Bitcoin has nothing to hide. Everyone is free to form their own opinion about the truth through Bitcoin. This has also contributed to its phenomenal success for more than 12 years.

The best thing to do is to run your full node and then check for yourself at any time that Bitcoin is sound money.

Satoshi Nakamoto immediately understood the importance that his unique invention could have on the world of the future. For this reason, he decided to make Bitcoin open source.

This made Bitcoin an outstanding success.

By deciding to offer Bitcoin to all its users as a magnificent gift, Satoshi Nakamoto decided to put the fate of his invention in the hands of all the inhabitants of the Earth. It was then up to them to make it a success or a failure.

Considering how far Bitcoin has come since 2009, it can be said that its users have fully grasped the importance of their mission. Bitcoin is already a phenomenal success with a market cap of more than 1,100 billion dollars.

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