The next step in the digital economy and the contactless form of payment is the implementation of cryptocurrencies on a day-to-day basis. Bitcoin is the major virtual currency that has promoted the mass adoption of other cryptocurrencies and has also made it possible for us collectively to invest in crypto and use it for crypto transactions.
The design of Bitcoin and the blockchain network is the main reason why Bitcoin became the most successful crypto asset. In this article, we cover the main aspects of the technology which promoted its growth.
Blockchain technology is the main technological infrastructure that did not only make Bitcoin a successful crypto-asset, but it is an essential component of the crypto ecosystem. The blockchain network is defined as a peer-to-peer distributed ledger, where the BTC transactions are recorded and processed. It has specific characteristics that make the process of adding BTC transactions easier and also transparent to every other user in the network.
Actually, complete transparency is one of the main advantages of the blockchain network. Otherwise, as each BTC transaction is registered in the network, it is saved in a so-called block of transactions; the blocks of transactions are approved by the miners who validate the transactions in the network, while each transaction is connected with a previous block of transactions.
This makes the chain of transactions in the blackchin network. Blockchain technology is designed in a way where each transaction as it is registered becomes irreversible, and because they are all connected to each other, it is not possible for anyone to change the data in the network.
Available Trading Sites
Another reason why Bitcoin became a popular asset is that it is very easy for new investors to obtain it on trading sites. Also, because Bitcoin is a digital currency, the volume of trading is growing when there is a high demand for it. In case you want to invest in Bitcoin, there is a great automated trading site Bitcoin Digital where you can invest in the cryptocurrency.
Automated trading platforms have become more popular because they make the trading process easier for any new user in the crypto field. Also, thanks to the design of this trading site, you only need to spend about 20 minutes of your day on the platform. You can become a member by depositing $250.
The blockchain network is designed in a way where even when the block reward is halved, the rate at which new BTC is generated on the market is stable. So, the supply is kept at a lower level, compared to the overall demand that is higher, especially since there are now a lot of investors. But another point that makes Bitcoin valuable is that the total number of tokens is 21 million.
The Blockchain Protocol – Bitcoin Halving
Bitcoin halving is one of the main protocols in the design of Bitcoin that made it possible for the cryptocurrency to reach stable growth over time and to enter a bull market phase every time the halving event occurs. It is scheduled to happen after 210,000 blocks are mined, so by now, it roughly happens every four years.
Originally, the block reward was 50 BTC, but after the three halvings, it reached a point where it was 6.25 BTC in 2020. The main goal of the halving event is to cut the inflation rate in half because it also halves the number of new BTC that are generated in the blockchain network.
After a halving, Bitcoin enters a bull cycle, and the last one is the longest bull cycle in its history, where the price increased in 2020 by 170%. It actually ended with a great price of $20,000. Moreover, in 2021, it registered another burst of growth and hit the price of over $60,000.