Bitgesell has successfully finished the halving event recently on March 28, 2021. This event is activated by bitcoin that hits the 52500 block and is the first major annual event for the Bitgesell project, which has minimized the reward of each block mining to 100 BGL from 200 BGL as blockchain technology is getting adopted as the perfect value store in the cryptocurrency ecosystem.
The halving event for Bitgesell marks an important move in achieving a coherent and efficient de-escalation economic model in comparison with that of its source crypto – Bitcoin. It was created in 2020 by Wu Emma, and the project extracts the important parts of Bitcoin and merges it with new innovative features that catapult it far ahead of the market-leading crypto.
Why is Bitgesell called the New Gold in the Digital World?
The similarities of Bitgesell and Bitcoin are quite limited to the Proof-of-Work consensus algorithm with an overall supply of tokens in the market of about 21 million. Apart from this, the features of Bitgesell are very outstanding as it aims to create contextual friendliness, improved usability and an exponential increase in the value of the token.
The asset model of BTC has been tweaked by the Bitgesell ecosystem to precipitate progress like four times the original. The project began with four times emission rate than the BTC rate, which means that 200 BGL for every block, and an annual halving event of the project in comparison to that of bitcoin that takes place in four years. With that given fact, the last Bitgesell will approximately be mined in 2054 as opposed to BTC in 2140. Additionally, it is quite easier to mine Bitgesell than it is to mine Bitcoin as the project uses a hashing algorithm with advanced SHA-3 standard rather than the SHA-2 standards that BTC runs on.
A convergence of Satoshi Nakamoto’s Theory and Silvio Gesell Theory
The basis of Bitgesell was from the idea of a German entrepreneur and economist, Johann Silvio Gesell that said that the solution to the economic problems globally is not hoarding money but using it as a medium of exchange.
He believes that if there is an expiry date attached to money, people will put it to action every time, rather than hoarding.