When developing Bitcoin, Satoshi had already come with the idea that no more than 21 million of them will ever be made. However, there was an unsolved issue: how to accomodate all bitcoins in case it was actually used as a worldwide currency? Comparing to the current (2008?) world's M1 supply, it was determined that 8 decimal places was enough to cover the ...
If you are running Bitcoin Core, you can see the total amount in circulation using the RPC call gettxoutsetinfo (in the Bitcoin-Qt debug console, or using bitcoin-cli if you run bitcoind).
At the time of writing, the output is:
which means there are currently ~17 million BTC in circulation. ...
Miners (who will no longer be mining, but will be validating transactions in the blockchain) will earn transaction fees. What those fees amount to or are to be interpreted as are hypothetical at this point, but might be imagined to be a transaction cost that ensures the security of the ledger.
This is the announcement of Bitcoin:
Total circulation will be 21,000,000 coins. It'll be distributed to
network nodes when they make blocks, with the amount cut in half every
first 4 years: 10,500,000 coins
next 4 years: 5,250,000 coins
next 4 years: 2,625,000 ...
EDA (Emergency Difficulty Adjustment):
Median Time Past of the current block and the Median Time Past of 6 blocks before has to be greater than 12 hours.
If so, it gets 20% easier to create proof of work. In other words, miners can find blocks 20% easier.
Source: Jimmy Song
As EDA is one way (difficulty down), miners abuse it. They stop mining, and ...
The popular intuition is typically correct in well-saturated markets, but Bitcoin is not yet a well-saturated market. Though the supply of Bitcoin is currently increasing the demand is increasing dramatically faster. This is because we are during the initial adoption curve of a new technology and new demand is created as individuals discover the new tech.
The reward schedule is a consensus rule in the Bitcoin network. Consensus rules are enforced by each full node independently. Node operators choose which consensus rules they enforce per the Bitcoin implementation they are running.
If a subset of the nodes were to increase the block subsidy, this would be a hardfork: a non-forward compatible consensus rule ...
If the transaction fees from miners are not sufficient to maintain the security of the ledger, than the network will self-destruct.
But, with the cap being so-far away (who knows how many years) by then computing power should be sufficient to ensure the sanctity of the network with very very minimal costs (low power costs), it wouldn't surprise me if bitcoin ...
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 blockchain consensus mechanism is what effectively awards miners solving a very difficult hashing puzzle. The solution block groups a number of transactions ...
The first transaction in every block is called the coinbase transaction, it is a special transaction that pays the miner their reward. This transaction adheres to different rules than the rest: it has no inputs, but has output(s).
The coinbase transaction outputs are allowed to be equal to or less than the block subsidy (newly minted coins) + all ...
If you want the total amount of BTC created, you simply need to iterate through the coinbase transactions (first tx in every block) and add up the output. You will then need to subtract the transaction fees for that block to avoid double counting those.
If you want a somewhat accurate money supply, you will need to do the above, and then also subtract any ...
This is not addressed in Bitcoin's Whitepaper, although Satoshi
Nakamoto briefly mentions the decrease of the reward, but never
explicitly talks about the amount of the reward.
Satoshi speak about the halving process since the release notes for Bitcoin v0.1 Alpha:
Total circulation will be 21,000,000 coins. It'll be distributed
to network nodes when they ...
This is possible through the use of a multiplier. For example, you could add it to Bitcoin as follows:
You add a "currency multiplier" and "next currency multiplier" to the block header.
All Bitcoin amounts presented are multiplied by this multiplier.
You have a set of rules for how the next currency multiplier changes. For example, miners could be ...
Maybe. It would require a split in bitcoin users. Those who wanted the change could switch to a new version of the bitcoin software with the code changed to allow it. The problem comes from the fact that it would have to be a voluntary change. Some would want to change, others wouldn't, and this would split the bitcoin community. Any transactions that occur ...
The answer to your question can be found on the Bitcoin wiki.
It's true that everyone can mine, but the amount of coins that are up to be mined by miners is controlled by the Bitcoin protocol.
The difficulty of mining a "block" is adjusted automatically (every 2016 blocks or ~ 2 weeks). The adjustment is made by all miners using a transparent calculation. ...
TL;DR: The Bitcoin protocol runs the Bitcoin network and the rate at which coins are created cannot be adjusted manually, but follows a pre-defined reward schedule.
The money supply in Bitcoin is governed by the rules defined in the Bitcoin protocol. The protocol defines a reward schedule, i.e. how many Bitcoins may be created with each block, and the rules ...
Nobody knows. It depends on what the demand is for Bitcoins by that time. If everything goes as planned, the last bitcoin will be mined about 125 years from now, and I don't think anyone has a good idea what the world's economy will look by then.
One extreme possibility is that Bitcoin becomes the world's one global currency. To get a very rough estimate ...
The Bitcoin protocol allows block authors to create a limited amount of new bitcoins in the outputs of the coinbase-transaction (which also collects the transactions fees) in each block. The amount of the so called block subsidy is limited by the consensus rules.1 Creating more than the allowed amount makes a block invalid to other Bitcoin nodes.
Each full ...
For the block to be valid there must be a coinbase transaction but it is only checked that it spends at much the reward and the fees generated in the transactions included in the block.
So it is possible to generate a valid block with a coinbase transaction spending less than the available coin and thus destroying coins forever.
But you can always send the ...
Well, everyone can manipulate the exchange value of a currency by trading large volumes.
Having 51% in particular does not really change that.
Besides, for lowering the price, he will have to sell a lot, probably losing his 51% position.
So basically, you can't manipulate the price just by having > 51% of the bitcoins, but by trading very large volumes. ...
This is a highly speculative question. From a technical point of view there will eventually be 21 million (21e6) bitcoins in circulation, yes. But we are already witnessing a shift to using the millibitcoin (mBTC) when denominating prices.
This use of ever smaller fractions may go on until we reach the satoshi (1e-8 bitcoins). We would effectively have ...
The point you bring up is fundamental to understanding how the bitcoin market operates.
The majority of companies that have grown quickly in the space help merchants accept bitcoin. As you mentioned, these merchants generally end up selling bitcoin for fiat currency. Companies that provide bitcoin payment processing have grown more quickly over the past ...
The limitation in the number of bitcoins is by design and determined in the protocol code. It is a desirable feature because it makes the money supply predictable and independent of human decisions like it happens with fiat money.
You are right about the block finder being awarded the reward, but that reward halves every two years. At this moment it is 25 ...
As Nate Eldredge pointed out, the chart you're looking at is denominated in BTC, while the market cap is denominated in USD.
If you look at the chart below, you'll see that the price in USD (green) behaves exactly as you describe in your question.
On the other hand, the price in BTC (orange) does not behave like you expected, because it combines the ...
Bitcoin Cash is a seperate fork, a seperate entity.
There will be (a bit less than) 21 million BTC, and (a bit less than) 21 million BCH.
Price differentiation is because of supply / demand for Bitcoin Cash.
You should see Bitcoin Cash as an altcoin, and not something that is in any way connected to Bitcoin.
There is a fixed rate for how many bitcoins are mined each block. The block reward halves every 210,000 blocks, see Controlled Supply.
Here is a short term bitcoin distribution projection from the Bitcoin Wiki:
To calculate the total coins for a given block, try:
block = 210000 * 10
totalCoins = 0
subsidy = 50.0
for i in range(1,block):
To verify the supply, you have to compute the theoretical maximum issuance based on the block subsidy schedule. Then you can use the gettxoutsetinfo RPC which will output the total amount of Bitcoin in the UTXO set in a field named total_amount. Lastly you check that the amount in the UTXO set is less than or equal to the theoretical maximum issuance.