Every four years, the Halving reduces Miner Rewards by 50%, which effectively doubles the marginal cost to produce a Bitcoin overnight (give or take).
This protocol feature puts upward pressure on the price of Bitcoin over time to fairly compensate the Miners for their work securing the network.
While the marginal cost to produce a Bitcoin is just a measure of Miner costs to process transactions and secure the Bitcoin protocol, it is also a reflection of how much global civilization values the most resilient accounting information system ever created by the human race.
More value is assigned to Bitcoin's resiliency everyday, which puts upward pressure on the Price, which attracts more miners to compete for miner rewards, which get cut in half every four years, which puts more upward pressure on the price, and so on and so forth...
I expect this process to continue until the supply and demand for the most resilient accounting information network reaches an equilibrium... which may still be many years into the future I suspect.
And none of this even considers the value of decentralized applications built on top of Bitcoin's security layer, which will no doubt only add more value and utility to the Bitcoin protocol.
Long story short, I highly recommend getting yourself some Bitcoin, so that we can get on with the real work of re-building human civilization under a new set of rules that promote Liberty and Justice for All.
Submitted May 04, 2020 at 01:10AM by the420chronicler https://bit.ly/2KUXglg
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