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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,...


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 ...


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

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

I was on another forum and the claim was made that the miners using new technology GPUs GPU mining has been obsolete for Bitcoin mining since around 2014. All mining these days is done using custom chips specifically designed for Bitcoin mining. It is orders of magnitude more power-efficient. and because of this there will be more bitcoin produced. ...


5

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 ...


2

as the popularity of bitcoin keeps on increasing, wouldn't more transactions take place daily? Yes, scaling of Bitcoin is a recognised issue. For people who use Bitcoin as a currency, as its creators intended, the solution is mostly off-chain payment systems such as the Lightning network. For speculators and day traders who treat Bitcoin as nothing other ...


2

The question contains a brief description of Bitcoin’s history, followed by this: This description of bitcoin's history makes it sound like an awful like a normal commodity such as crude oil …. The net result (according to Hubbert, at least) is that there is a peak in the extraction rate of the commodity. This is often referred to as "peak oil" in ...


2

The currency supply of Bitcoin currently inflates at about 2.5% p.a.. However, this is what economists refer to as monetary inflation. The supply is disinflationary, because the rate of monetary inflation is decreasing over time as each block increases the supply by a smaller relative amount. When people speculate about Bitcoin being inherently "...


2

Bitcoin halves every 210,000 blocks, which is approximately every 4 years. Since we can not be sure on an actual time, only blocks, the variance you are noticing is likely because it's a different estimate.


1

TLDR: The price of bitcoin determines how many miners are mining, not the other way around. Your last paragraph is on point! After a block halving, every miner unprofitable at the new reward will stop mining. They will stop mining because they need to pay for the electricity they burn. But for each miner that stops mining, the remaining miners become more ...


1

You can use new address for each transaction and receive BTC in the same wallet. Use one of the open source bitcoin wallets.


1

We do not know whether it was a deliberate choice or an oversight that the difficulty interval is not a factor of the halving interval. Instinctively, I'd suspect that both were chosen on their own to be round numbers in their context: 14 days worth of 10 minute intervals, and a 4 year intervals starting with 50 ₿ rounded to the next ten thousand. Choosing a ...


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