Bitcoin's mining reward is halved every four years, reducing the rate of new coin creation from "summary" of The Bitcoin Standard by Saifedean Ammous
Bitcoin's mining reward is halved every four years, reducing the rate of new coin creation. This mechanism is known as the "halving," a feature that is hard-coded into the Bitcoin protocol. The purpose of the halving is to control the supply of new bitcoins entering the market, thereby ensuring scarcity and preventing inflation. In the early days of Bitcoin, the mining reward was set at 50 bitcoins per block. Every four years, this reward is cut in half, leading to a reduction in the rate of new coin creation. This process continues until all 21 million bitcoins have been mined, which is estimated to occur around the year 2140. The halving mechanism is essential for maintaining the integrity of the Bitcoin netw...
Similar Posts
Learn to differentiate between wants and needs
Understanding the difference between wants and needs is fundamental to achieving financial wisdom. Wants are desires that are n...
Giving back can bring greater satisfaction than accumulating wealth
Many people believe that the key to happiness lies in accumulating more wealth. They think that the more money they have, the h...
Competition benefits consumers through lower prices and better products
Competition between businesses forces them to constantly seek ways to attract customers by offering lower prices and better pro...
Bitcoin's impact on financial inclusion
The idea that Bitcoin could have a positive impact on financial inclusion is one that has gained traction in recent years. The ...
The return to sound money is necessary
Returning to sound money is not a luxury, but a necessity. It is the only way to ensure a stable and prosperous economic future...
Development of alternative cryptocurrencies
In the early days of Bitcoin, as the idea of a digital, decentralized currency began to take hold, a wave of new cryptocurrenci...