18 votes

When, if ever, will "peak bitcoin" occur?

At the beginning of Bitcoin, every newly mined block (about every 10 minutes) creates 50 bitcoins. This is called the block subsidy. About every 4 years, this number cuts in half. Therefore, the peak ...
18 votes

When, if ever, will "peak bitcoin" occur?

According to comments by the project's founder, Bitcoin's issuance rate was indeed inspired by that of precious metals. However, it is implemented algorithmically, of course, which artificially limits ...
  • 66.1k
17 votes
Accepted

Bitcoin without mining - what needs to be implemented

Mining is not essential for coin creation. New coin introduction can be tied to new block creation, or be time based. Even if you don't use proof of work, you will still have blocks (even if you don't ...
12 votes
Accepted

Coinbase transaction's 100-block cooldown period

how is the output of a coinbase transaction (plus block's transaction fees) different than the outputs of any other transaction? Because it's validity is tied to WHICH block it is included in. You ...
  • 13.8k
12 votes

Bitcoin halving conflict? Is this a rumor

It is exactly at block 420000. When block 420000 will be mined is not certain, as the block mining process is random and influenced by hashrate variation.
11 votes

What is the coinbase?

David has already given a good explanation of the term coinbase, but I'd like to give further details on the coinbase transaction. The coinbase transaction is a special type of transaction. Every ...
  • 66.1k
11 votes
Accepted

What Value does mining provide?

As you mentioned, bringing coins into the network is one of the main purposes of mining. But this reward is just an incentive to do the other more important part of mining: 'processing' transactions. ...
  • 13.8k
10 votes

Who issues bitcoins and how?

the protocol allows a miner when he creates a block to send himself 25 BTC which do not have a proper source (input). that's how those 25 BTC are created, they're bitcoins that come from nowhere.
9 votes
Accepted

Is it possible to "unmine" particular coins?

Technically, yes it's possible to do this. Practically, doing this would probably break everyone's trust in Bitcoin. One of Bitcoin's principle guarantees is that nobody can confiscate anyone else's ...
9 votes
Accepted

How much time in average does it take for an simple PC to create block?

The answer is constantly changing, but this is something you can calculate yourself. Look up the current Bitcoin difficulty value. Right now it is 460,769,358,091. Let's use scientific notation: 4....
9 votes
Accepted

Is there a minimum number of transactions in a block?

A block may contain only one transaction: the coinbase transaction. However, the time it takes to mine a block is not affected by the number of transactions in that block, so mining blocks with fewer ...
  • 314
8 votes
Accepted

How many Bitcoin are mined per day?

Colin's calculation has a mistake in that it doesn't account for partial Bitcoins not being paid out in block rewards. It rounds down the reward per day, but should round each block reward down to the ...
  • 66.1k
8 votes
Accepted

How did Satoshi manage to mine so many bitcoins being the first user of the system?

Blocks can include transactions, but it is not necessary for transactions to occur in order to create blocks. The only transaction that is required in a block is the coinbase transaction which is the ...
  • 66.1k
8 votes
Accepted

What is the exact moment when a miner gets rewarded?

A coinbase transaction it not spendable until it is 100 blocks deep in the blockchain. Since a block is produced every 10 minutes, it will typically take 1,000 minutes (just under 17 hours) before a ...
7 votes

What date does the 2016 halving happen at?

The first block with the halved block subsidy is 420,000. However, blocks are discovered in a random process – whereas the protocol aims to have blocks found approximately every ten minutes, in effect ...
  • 66.1k
7 votes

Does the block reward comes from a bitcoin treasury? If yes, then how is it issued?

There is no treasury. The Bitcoin is generated out of nothing. The coinbase transaction has special rules. It is allowed to have only one input which has no previous output and really no value. It is ...
  • 63.9k
7 votes
Accepted

Why does Bitcoin block 526,591 have a 6.25 (instead of 12.5) block reward?

There is a maximum limit on the block reward which is 12.5 BTC but nothing prevents a miner from claiming less than 12.5 BTC. In fact, there have been times when miners forgot to claim any bitcoin at ...
  • 701
7 votes
Accepted

Why does the mined block differ so much from the block template?

The version of the mined block is 0x2fffe000 instead of 536870912. Many miners employ a strategy known as overt Asicboost. This strategy requires modifying the version number like the nonce, so we ...
  • 63.9k
7 votes
Accepted

How/When is mining reward given in the presence of forking / orphan chain?

You have to distinguish between nodes' local view of the chain, and your global view when discussing here. Every chain (meaning: a block together with all its direct and indirect ancestors) is a ...
6 votes

Is mining an instant process or it generates fraction of coins constantly?

You are correct, bitcoin mining is a very binary thing. Either you find the hash and you get rewarded bitcoins (currently 25 BTC) or somebody else finds it and you get nothing and have to try your ...
6 votes
Accepted

What is the motive of a miner to include transaction in a block?

Blocks can contain whatever is valid, anything beyond that is up to the miner to decide. Including no transactions other than the coinbase transaction is valid, and there is no way of having a rule ...
  • 15.2k
6 votes
Accepted

Why are coinbase transaction outputs greater than reward?

The extra 0.25058085 BTC is the sum of the transaction fees on the block (each transactions fee is the difference between the value of the transaction's inputs and the transaction's outputs). As you ...
6 votes

Why would a Bitcoin miner take less than the full reward?

Likely you're correct, it's not useful in practice. People could, however, use value destruction as an costly signal. Voting example; I run a poll of mining pools; number of Satoshis less than the ...
6 votes
Accepted

Without side chains will transaction fees rise as block rewards fall?

You are correct that transaction fees per block are much smaller than block reward, but they are still significant and rising: https://www.smartbit.com.au/charts/transaction-fees-per-block Recently ...
6 votes
Accepted

How does a miner create a transaction input to spend tx fees?

The transaction fees in a block are included in the coinbase transaction, which is a special type of transaction in that it does not have any inputs. The value of the coinbase transaction’s output ...
  • 17.6k
6 votes
Accepted

Verifying Block 124724

assert coinbase_amount == block_reward + total_tip That's not correct. The actual consensus rule would be coinbase_amount <= block_reward + total_tip (in other words: miners are allowed to burn ...
5 votes

Who issues bitcoins and how?

No one entity overseas the issuance of block rewards. This is one of several revolutionary concepts behind Bitcoin. (There is absolutely no Federal Reserve.) The Bitcoin Protocol and its distributed ...
  • 2,967
5 votes
Accepted

Is the Bitcoin rewards formula flawed?

From "The Unreasonable Fundamental Incertitudes Behind Bitcoin Mining" (page 40): With current bitcoin software [6, 7], at certain moments in time the reward for mining is divided by two in one ...
  • 66.1k
5 votes
Accepted

Why bother having limitations on Bitcoin Coinbase Transaction Scriptsigs?

The correct answer is: ask Satoshi. My guessed answers to the questions you asked: Why only one input? You can't predict when a particular coinbase transaction will make it into a successful block ...
5 votes
Accepted

Who generates the coinbase transaction?

The coinbase transaction is not relayed by the network. It is invalid except as the first transaction in a block. A standalone miner generates the coinbase transaction itself. In mining pools, the ...
  • 28.9k

Only top scored, non community-wiki answers of a minimum length are eligible