131
People say the total will be 21000000 BTC.
... however:
The 1st 210000 blocks each allow creating 50 BTC.
The 2nd 210000 blocks each allow creating 25 BTC.
The 3rd 210000 blocks each allow creating 12.5 BTC.
...
The 10th 210000 blocks each allow creating 0.09765625 BTC.
The 11th 210000 blocks each allow creating 0.04882812 BTC, and not 0.048828125 BTC, ...
29
If you were a miner, what are the steps you would take to create the extra (21,000,012.5th) bitcoin?
Where in the source code is this exactly (link)?
There are two components to CVE-2018-17144. There is a crash bug and an inflation bug. Both are triggered by almost the same scenario: a transaction contains an input multiple times.
In general, how this would ...
27
The estimate is 2140 based on the block reward halving frequency of four years. According to math and knowledge that there are 32 halving events, in 2136, the block reward will yield 0.00000168 BTC per day, which is 0.00000042 BTC per block. That's 42 satoshis.
It's arguable that there could be one additional halving, to a block reward of 0.00000021 BTC, ...
20
Neither. The reward eventually ceases, but not at 21 million Bitcoins.
Here's the code (edited for clarity and brevity):
int halvings = nHeight / 210000;
CAmount nSubsidy = 50 * COIN; // COIN is one Bitcoin
// Subsidy is cut in half every 210,000 blocks which will occur approximately every 4 years.
return nSubsidy >> halvings;
(Source.)
Note that ...
18
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 extraction rate was about the first 4 years of Bitcoin's existence.
In fact, it was from 3 January 2009 to 28 November 2012.
The block reward includes both the ...
18
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 the issuance rate rather than actually being an abundant resource getting consumed over time.
The bitcoin reward schedule halves the block subsidy every 210,...
16
Bitcoin becomes very insecure if miners stop mining. Think of how easy a 51% attack would be to pull off.
However, I disagree with your assumption that miners will stop. And certainly that if Bitcoin dies it would be because miners stop. I would instead think that miners would only stop if something else already killed Bitcoin. Bitcoin is designed to always ...
15
As Artefact2 mentioned, Bitcoin uses fixed-point math to calculate the block subsidies. So, ignoring the unspendable genesis block, the sundry lost coins and unclaimed rewards, the maximum number of bitcoins is 20999999.9769 BTC.
I found that number through the following python program:
COIN = 100 * 1000 * 1000
nSubsidy = 50 * COIN
nHeight = 0
total = 0
...
15
Year #bitcoins Inflation per annum
2009 1,624,250 -
--------------------------------------------------
2010 5,020,250 209.1%
2011 8,001,400 59.4%
2012 10,733,825 34.1% (halvening November 28)
2013 12,199,725 13.7%
2014 13,671,200 12.1%
---------------------------------------------...
12
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.
10
Because the block halving incentives getting into Bitcoin NOW, rather than later. Early birds take more risks and get more rewards. Otherwise the network would have problems getting enough miners involved in the first place.
Asides that, there is a concept of inflation and deflation - we have already experienced the first one, so we might as well try the ...
10
No, mining will not come to an end at that point. The article is incorrect.
Mining will continue once the block rewards are no longer available, as transaction fees will continue to be offered. As the block rewards tend towards zero, the total value of transaction fees in each block will start to exceed the block reward. This will happen long before the ...
9
There are a lot of reasons and I don't think it's known what factors led to the final decision.
For one thing, when the basic Bitcoin mechanics were designed, there was a significant risk that Bitcoin would never be adopted. By giving a fixed term to mining and a fixed supply of Bitcoins, the original designer(s) increased the chances that people would want ...
9
The Bitcoin reward schedule follows a predetermined pattern, see Controlled supply from the Bitcoin wiki.
The next reward drop will happen at block number 420000. The current block number at the time of writing this answer is 318662. There are about 101338 blocks remaining. At approximately 10 minutes per block, there are approximately 1008 blocks per week, ...
8
I've read some of the linked discussions, and it seems some of the participants fail to understand the basic economic theory of the marginal cost. In any high fixed-capital business, the net present value (NPV) determines the ROI (IRR) and determines the opportunity cost where investors apply their capital. Thus, in normal functioning markets, the lowest ...
8
According to a BIP (Bitcoin Improvement Proposal) I found, this code:
nSubsidy >>= (nHeight / 210000);
will actually wrap the reward generation back to 50 at some point in 2200 or so. Making the supply of bit coins infinite. The python code above does not have this property. The C++ code does. See BIP https://github.com/bitcoin/bips/blob/master/bip-...
8
This is the announcement of Bitcoin:
http://www.metzdowd.com/pipermail/cryptography/2009-January/014994.html
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
4 years.
first 4 years: 10,500,000 coins
next 4 years: 5,250,000 coins
next 4 years: 2,625,000 ...
7
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 satoshi. The first period changed by this correction is Halving 10.
Payout per day at 144 blocks
Start (2009) : 7200.00000000
Halving 1 (2013) : 3600....
7
All times approximate.
Each block takes ten minutes, so there are six blocks per hour, 24 hours per day. The original block reward was 50 BTC. Thus, 7200 BTC per day introduced to the system.
I contrived this script to model the decline, including the year the halving is expected to occur:
ruby -e 'reward = 7200.0; halving = 0; while halving < 33 do ...
7
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 blocks are currently found about every 8.94 minutes. Therefore, one can only estimate the precise arrival of the Halving:
thehalvening.com estimates 2016-07-...
7
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 all (claimed 0 BTC), a very expensive mistake. This is probably a mistake from the miner, he could have certainly claimed more bitcoin.
As long as the block ...
7
I have created this Google sheet to calculate various metrics of the reward schedule. The numerical maximum of bitcoins that could be created is 20,999,949.9769 BTC.
0.98 × max = 20,579,950.977362
So, the network will have issued more than 98% of all bitcoins once there are more than 20,579,950.977362 BTC. Looking at the table I linked above, we see that at ...
6
The new FinCEN regulations are quite clear that the term "create" includes currencies that people "obtain by their own computing or manufacturing effort".
A final type of convertible virtual currency activity involves a de-centralized convertible virtual currency (1) that has no central repository and no single administrator, and (2) ...
6
As I understand it, this is by consensus, i.e. all the nodes in the network agree on this protocol.
No. The network doesn't vote to change itself. Read this: What can an attacker with 51% of hash power do?
Arguably, you could try to get a change to the bitcoin client implemented through astroturfing.
Here's how you'd increase monetary inflation.
Find this ...
6
On average, since the creation of Bitcoin, a new block has been created every 9 minutes and 20 seconds. This is 7% faster than the correct time of 10 minutes. Taking that into account, I predict that the next one will be at Jun 20, 2016.
6
When no Bitcoins are left to be mined, how will the Blockchain continue to be validated? [duplicate]
Mining rewards are not the only source of income for miners. There are also transaction fees. When there are no more bitcoins to be mined (happens around 2140) then miners would be mining for transaction fees only.
6
There will be 32 halvings, but the block subsidy will be reduced 33 times with the last reduction not halving it, but reducing it from 1 sat per block to 0 sats per block (see table with calculation). So there will actually be 33 eras with a block subsidy, which would mean that per your calculation the last new bitcoins would be created in 2141.
However, the ...
5
Some time in around year 2100, blocks will only be worth 0.00000001 BTC or less. But a long time before this, miners will earn their bitcoins by the transaction fee. And when blocks no longer can generate bitcoins, then the miners will earn their bitcoins only from the transaction fee (versus earning 99.99% from the fee). Miners can still generate blocks, ...
5
As per the current rules there will only ever be 21 million coins at most (explained in other answers here). However, I'd like to add that this is by general agreement, which means that it can be changed.
See this question: Could there be hyperinflation in Bitcoin?
Looking at the history of money, I am skeptical that there will only ever be 21 million ...
5
The block halving takes place every 210,000 blocks. The difficulty retargeting mechanism makes it so that 210,000 blocks take approximately 4 years, but this is not exact. If the hashrate is rapidly growing, it will take a little less than that.
For example, if the total network hashrate doubles every year, it will take about 1 month less. If it doubles ...
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