Bitcoin Halvening Explained VS Bitcoin MYK Halvening

Welcome back to the channel. I hope you all are having a great day. So today we want to talk about the Bitcoin halving. It's a big news that's coming up in cryptocurrency with Bitcoin. What does it mean? What is it? How does it work? Why is it so important? And we're going to make some comparisons and talking about, uh, the Bitcoin MYK, what I guess we could call its version of the halving, and what is it and how How does it relate to all this? But anyway, with Bitcoin, we have to understand that when Bitcoin began, that every 210,000 blocks that were mined would have the tokens. So the reason why this occurs is many of us love fixed supplies. We love deflation because with deflation, you don't have inflation, which causes you to lose value in the assets you hold, right? So deflation stops that. That supply is gonna always be the same supply no matter what happens. There will never be more of those coins, right? No matter how much demand drives them, supply cannot meet the demand factors, right? And that's very important. The important part is to understand, and that's why Bitcoin is so appealing. So what happens is every 210,000 mined blocks, the Bitcoin mining reward is reduced, right? When Bitcoin first started, the mining reward was 50 Bitcoin. You mine, your block reward would be 50 Bitcoin. Every time 210,000 blocks are mined, that 50 Bitcoin would get cut in half, hence the term the halving. So go from 10 to 25 to where I believe we're at now, which is about 12.5, right? Um, and that's how it works. Now, 210,000 blocks equals about probably approximately every 4 years. Um, and you have the halving. Again, this is necessary because you're going to run out of coins and a fixed supply of some type of asset. The setbacks of a fixed supply, uh, the deflationary money. Um, and so that's how the Bitcoin halving pretty much works. Now, um, it is expected that around the year 2140, the very last Bitcoin will be mined. Now, what does that mean for Bitcoin holders? Right? Well, it means they will no longer receive a block reward when they mine because there will be no more coins to mine. However, at this point, Bitcoin still has transactions and they'll get by on the fees from the transactions. And that's how the Bitcoin halving works. Right? So the problem with a fixed supply, you only have so many, you can't create more. You're going to run out. If you're mining something, um, and it's giving out coins to you on a fixed supply, uh, then it would logically follow that at some point eventually there isn't going to be anything left in that fixed supply to mine. And hence the, you know, how we get the halving. So that's a description and an explanation of the Bitcoin halving. If you don't know, now you know. Some, some people hear it, they're not exactly sure or familiar with what it is, or they don't quite understand it, but that is basically how it works. Have something like gold, you have something that you want to be gold, uh, it is gold based on its rarity, and, uh, where it's only so much of it. Now The BitcoinMYK project, which is, you know, a lot of people get a little quite confused. Why is it called BitcoinMYK? Like, why is, why would we need to use that name? And of course, when I'm talking about BitcoinMYK, now we're talking about a project I started that is reminiscent of Bitcoin, but how does it relate to Bitcoin? So to be clear, we first have to understand that the idea of Bitcoin, how it first started off with Satoshi in those early days, we're talking a long time now. We're talking about probably back 2009 or something like that. The white paper that was created for Bitcoin, it talks a lot about this digital currency. And during that time, you gotta remember it was nothing like cryptocurrency projects how we know them today. So when people would hear, um, uh, the technology of the idea, or the idea behind Bitcoin at that time, was probably more relative to something like a digital currency. Prior to that, you had, um, I guess you could say the, uh, the progenitors or the, uh, of, um, Bitcoin were projects like E-Gold, A lot of people, some people remember eGold way back in the early 2000s where they had this type of gold money that you could send across the internet, right? Very reminiscent of what Bitcoin became. A lot of people felt those were the grandfathers of Bitcoin and some other projects way back then. But I'm saying all this to say that due to that fact, there's been a lot of misinterpretation of what Bitcoin is now today and what it was meant to be in Satoshi's vision. Um, the, uh, word that is out about why Bitcoin is a store of value has to do with what happens in early days of technology. What do you usually get? Well, usually when somebody creates nowadays, or even Back in the day, when people create technology, say the great inventor, the great tech genius sits down in his garage and he creates, uh, basically that, that great new technology or product. He now, he next usually would seek some funding. Where does he go to get the funding? Well, he doesn't go to his local bank. Usually what happens is venture capitalists will fund him, right? Private equity funds. And what do private equity funds and venture capitalists want? Well, they want money and as much money as possible. Now let's contrast that back to Satoshi's white paper. Whereas Bitcoin meant many different things to many different people, whether it was to freedom fighters or whether it was to anarchists or whether it was just normal citizens who didn't want inflation or the printing of government fiat currency to steal their wealth. Whatever the case may be, Bitcoin, um, had a variety of different, uh, ideas to people, um, and, uh, the venture capitalists, when they came along, they had their own ideas. And so the story goes that venture capitalists kind of concocted this idea to make Bitcoin not a currency or digital money, but just to store value, to just access gold. And people just hold it and they make money as the price goes up based on the scarcity. Now, what that did, and a lot of people, even in cryptocurrency, I don't think have thought this well out because what many in cryptocurrency tend to do is attack many Bitcoin forks. And they go, oh, this is— it's only one real Bitcoin. And they go, well, if it's only one real Bitcoin, why would you create other Bitcoins? Well, this is the reason why. The reason that the more Bitcoins have been created is because of the fundamental disagreement and the philosophy that Bitcoin could be a store of value based on venture capitalists wanting to make money. Now you first have people like Roger Ver fork Bitcoin with ideas like Bitcoin Cash, and a lot of people didn't like that. Next you have all these various forks of Bitcoin and Gold Bitcoin Satoshi Vision. Just a lot of different forks that take place. Um, I believe it's something like over maybe 100 now, quite a bit. So, um, so to make a long story short, I think what we have to pay attention to— I'm sorry, I had to run off and do something, so I kind of lost my train of thought for a second. But to make a long story short, what part of the fundamental disagreement was, was that by making Bitcoin a store of value Many of these other forks and personalities felt that, um, then what would be the use of Bitcoin, right? Because it's not a money, it's not based on the Satoshi white paper being this digital money. Um, and because of that, many, they start to fork it. They said, well, if you're not actually using it for anything, if it's not of use to people, people are going to see that and they're not going to want to use it. Right now, in comparison, we look at something like gold. A lot of people would say something to the effect of, well, gold is a store of value. It works well as just a store of value. But some economists state that in order for something to be an efficient store of value, it has to have had a history of being good money. To transfer that value, right? And when you look at the history of gold, you go back 3,000, 4,000 years, gold has been that, has been a transferable money in day-to-day operations in life up to almost, it was still relevant up to about the 1970s when it was no longer backing paper currency. So gold has really put in the, been implemented into the system to a great degree that it is foundationally sound as a money in our system, whereas Bitcoin was kind of just pushed to a store of value through a scarcity mechanism that is now being duplicated by hundreds, if not thousands or tens of thousands of projects. So this is part— was part of a lot of the fundamental disagreement. So do I agree with all of these different forks and ideas? No, I do not. Just want to be clear about that. But what a fork does suggest in some ways is that the original product somehow is, um, you know, missing something, right? And a fork, uh, is kind of some type of improvement, at least an idea upon that. Now even the term fork is quite complicated, as many of you all will know. And, uh, with our project, we're going on a very basic definition that has been published online about forks, and it is in the idea of anything that inherits the Bitcoin ledger. You know, basically what it means is that our token matches up to the Bitcoin ledger, and if you hold Bitcoin, you hold our token in a ratio, in an almost exact ratio. Um, you know, hence the idea of a fork. Now some people would say, oh well, that's not a fork because it's not, um, a hard fork. It's, it's not, you know, a fork, uh, much like what you got with Bitcoin Cash or Bitcoin Satoshi Vision. And in that, they would be absolutely right, right? We're using the term loosely just for reference. The only thing that really would relate to Bitcoin with us would be the branding as well as the ledger itself determining who owns the tokens, right? So we would have no issue at all, uh, even not even using terms like fork. We only use them for reference because many people understand that in reference to how you would receive our tokens. But, um, Because of that, um, our, our, the BitcoinNYK project, how it's happening works is totally different from Bitcoin's, yet very similar in some ways, right? Because it matches up with the Bitcoin Ledger, there are certain things that have to occur in relation to Bitcoin, but it doesn't follow the exact, uh, mechanics of Bitcoin. So to explain, the BitcoinNYK project trees on The Steem blockchain. Now that's weird. Why would any kind of Bitcoin product trade on the Steem blockchain? Well, the Steem blockchain is, um, basically the transactions are free and it's very fast. It's one of the fastest networks. So to, to think about what if you had a Bitcoin where the transactions were fee-free and it was super fast, right? That would almost be a no-brainer. You would want a Bitcoin like that. So what BitcoinNYK, by piggybacking off the Steem blockchain, it could kind of create that situation. Now the next thing it can do is because it's piggybacking off of a chain, it doesn't have any real miners, right? So if it doesn't have any real miners, why are we even on the subject of a halving, right? So what's been happening as well is that Some people believe that, and I think it's kind of obvious to see the amount of energy expenditure that goes into mining rigs, the proof of work algorithm, the electricity costs, and some believe the harm to the environment. I'm not going to get deep into that, you know, whether that's true or not or to what effect, but it is a subject of discussion. Um, so part of the issue is that, um, if that is correct, or just the large amount of electrical use is a huge problem, uh, and it's led many to use different algorithms, whether it be proof of stake or delegated proof of stake or what have you. Um, the point, uh, you know, that I'm making is that the proof-of-work algorithm, in reference to why would the BitcoinNYK project be on a blockchain like Steem, is that the proof-of-work algorithm has many issues and it's causing many people to opt to some type of proof-of-stake mechanism similar to what's happening even with Ethereum, right? So this is going on in the space and everybody knows about this pretty much. So another advantage to piggybacking off of a blockchain means you don't have to pay miners. What happens when you don't have to pay miners? Well, the value can go back into the project. It can go back to the investor. Uh, some people complain miners are overpaid. They are paid way too much, um, and, uh, in fees and, um, miner rewards or what have you. And because of that It's causing some people to look for other solutions, right? The BitcoinNYK project, it doesn't have to pay miners. So what is it that we're really doing? Well, we look at this more like a learning experience or a game application in that the mining is simulated. And because it's simulated, uh, and it's not really block rewards, what it means is that our tokens then would have to somehow simulate what happens when you're awarded a block reward, right? Now, um, how we accomplish that is, it's quite simple. We use a random algorithm that selects miners, uh, that are purchased on our network. It selects your miner and you win the block reward, right? Um, now the, the, the problem with that is, as our Token matches up with Bitcoin, what happens is when halving occurs with Bitcoin and when, uh, we give out these miner rewards and we circulate these tokens back and forth, we become subject to the same issues as Bitcoin. And so what we've done is we do something a little bit different. Instead of halving, we do, uh, burning. Right? Burning tokens, reducing that supply. So what we have to do with our simulated miner rewards, as we explain here, uh, on the page, is that, uh, uh, the rewards are reduced based on the tokens burned. Every 1 million burned tokens, the miner's rewards are reduced by 1%. This represents 1% of the total supply And so what it's basically saying is that, um, the Bitcoin NYK, uh, tokens will eventually match up with the Bitcoin supply, um, and, um, the mining rewards that go out now, as that the burn ratio burns down to match the Bitcoin supply, the miner rewards will be reduced in ratio with that. So what you'll actually get is you won't get You won't, you won't get really any changes in the value of the network, right? Because it will move in relation, you know, with the reduction of the burn, the burning, and the miner rewards. Well, the math will work in relation to that. So you won't have that. But it will basically come out working pretty much the same as the halvening, but with that element of the mechanism would be different because there aren't really actual miners. So it's quite interesting. It's quite interesting. You know, some people say, well, don't want another Bitcoin, it's only one real Bitcoin. And with this project, if you own Bitcoin, you don't have to worry about it anyway. You get our tokens free as long as you hold Bitcoin. One strategy is just buy Bitcoin and collect our tokens, right? Um, some people will speculate on it. They will see it as, uh, well, this is an opportunity at a new Bitcoin, right? There's an opportunity to have this project go up to a value like Bitcoin, and I can kind of repeat what we did in Bitcoin. So many people are going to look at it different ways, but we're having a lot of fun with it. We just started selling our miners. We've already sold like 13 miners, and our miners are aren't cheap at all. Although you get the tokens for free, it's kind of— we call it a proof of participation model. You kind of swap your value for the tokens in a way. We do have other means you can use the site and you can get tokens free, or you can earn tokens and so on and so forth. But these miners, they started about 10,000 BitcoinNYK tokens, and our first, or our peak price with the Bitcoin MYK token has been about $1.04. Uh, since then it's reduced down to fractions of pennies as more people loaded in the network on the platform and, uh, started to sell off. Excuse me, but it's, uh, reduced down to fractions of penny. Even at fractions of pennies, miners are still hundreds of dollars if not thousands of dollars. Uh, so they're probably cheaper than, uh, traditional miners because they're virtual, they're not real. But it's quite interesting that they, they— people still purchase them. They care to this kind of value. And so, um, they still have to simulate what's happening with Bitcoin, but you know, it gets all the good advantages and dumps all the bad stuff. Like, you know, no electrical costs, you don't have to worry about your electric bill, uh, so that's good. You don't have to worry about harming the environment, uh, or any of those things. And, and it's, it's a pretty cool, fun project. And, um, We invite you all to participate and check it out. But those are the differences. Also, if you're a miner who didn't quite understand this part, you know, anytime you have a project that's just started, it's a lot of beta testing. There are gonna be some mistakes in the math and things going on, but we wanna assure you that if you've purchased a miner, that the burn rate and the rewards rate will reduce identically, which means your ratio share of the network will remain the same even though you may see a reduction in tokens. Your value will be the same because the network itself would have reduced in the same ratio value, right? So in other words, it will not only be less rewards tokens, but you'll also have less tokens circulating through the entire network, right? So everyone's tokens will reduce in like form. But that's it. That's, that's all I want to say in this video. Um, if you are interested in the Bitcoin halving, uh, we hope you— we explained it in this video. And if you hold Bitcoin, come on over to our site. You can do it free and get our tokens free, uh, as long as you hold Bitcoin. We'll leave a link in the description. But that's all we want to say in this video. If you like content like this, don't forget to like and subscribe. And until next time, take care.