It's a natural result of log math (when you find something, there are less left to find, so it gets harder)
but I always suspect it's to get the technology to evolve to a point where it can the most efficient it can be.
If it was a straight line we'd all still be doing it with a PC like Litecoin.
Topic: Why is bitcoin supply curve as it is? - page 2. (Read 1236 times)
It's a log-curve because the block reward that miners get for solving a block halves every 4 years.
If you want to understand why this is the case I would recommend reading the original whitepaper.
If you want to understand why this is the case I would recommend reading the original whitepaper.
My understanding is that is to create a diminishing return like that found in a resource like gold. That is to say, there is always more gold to be mined, but it gets harder to produce an ounce every year. That keeps upward pressure on the price.
Hey guys,
Why does the number of bitcoins in circulation follow a log-curve, and not linear (or perhaps of another shape)? What are the advantages of this approach?
Why does the number of bitcoins in circulation follow a log-curve, and not linear (or perhaps of another shape)? What are the advantages of this approach?
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