Bitgesell, a project which takes the BTC blockchain and improves it, will complete its first ever halving tomorrow, March 28th, 2021.
Bitgesell announced today that it will successfully complete its first ever halving – reducing the block rewards on its’ BGL blockchain by half. This will be the first block reward halving since the genesis block was mined in April 2020 giving rise to the revolutionary “new digital gold” currency.
According to Coinmarketcal, a halving countdown calculator, the halving will happen at block number 52500 at around 12.00 AM on Sunday, 28th March, 2021.
Created with a Revolutionary Vision
Bitgesell was founded by Emma Wu, following Bitcoin’s codebase and rectifying the problems and challenges faced by the top blockchain & other proof-of-work (PoW) chains in the past. The blockchain is named after German entrepreneur, Silvio Gesell, who is best known for his forward-thinking writings on rampant inflationary practices & policies and plans to create “expiring money”.
During the financial depression of 1890 in Argentina, Gesell created a new kind of paper money that would have an expiration date. To avoid expiration, the bills would have to be periodically stamped for a fee. No new stamp meant that the bills would become worthless – such that storing or saving this money makes it worthless.
“Savings, in other words, would have a negative interest rate,” an NPR post reads.
“Only by spending or investing it would you be able to avoid stamp fees.”
Similar to Gesell’s vision, Bitgesell employs a unique deflationary asset model that aims to constantly increase the value of BGL tokens. The blockchain has a similar maximum hard cap as Bitcoin –21 million BGL tokens – that will be mined possibly till 2054. However, unlike BTC, the rate at which halving happens on Bitgesell has been cut in four.
“Whereas Bitcoins halvings occur every 210.000 blocks, Bitgesells halvings will occur every 210.000/4 or 52.500 blocks,” a Bitgesell spokesperson said. “Roughly one year between each halving instead of four.”
Since the halving, every block mined rewards the miner 100 BGL tokens from 200 BGL token rewards in 2020.
Bitgesell: Deflationary at the Core
While Bitcoin gains its value from scarcity – given only 21 million BTC will ever be mined – Bitgesell aims to make its tokens even scarcer by burning the tokens. According to the spokesperson, over 90% of the transaction fees on Bitgesell will be burnt by the time the last block on the blockchain is mined. This is expected to increase the value of the coin as supply decreases – probably making it more valuable that the ‘king of crypto’.
Apart from increasing the value of the coin, deflationary currencies also maximizes profit for the early coin holders, reduces price volatility of the circulating coins and also reduces the huge supply of tokens available to the community.
BGL is currently listed on Hotbit exchange and CREX24 crypto exchange, and has recently had its’ first USDT pair listed at DigiFinex. BGL continues to trade with increasing volume,and interested readers can find out more about how Satoshi Nakamoto & Silvio Gesell’s vision are marrying to make the future of digital gold at www.bitgesell.ca
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