Post by Admin/YBB on Feb 14, 2024 20:08:37 GMT -6
Bitcoin Halving
A simple and understandable explanation of Bitcoin halving events. Every 4 years of so, the reward for finding new Bitcoin blocks is cut into half. The next halving in 04/2024 will be 4th such halving since inception (2009). The reward in Bitcoins per block has been 50 (01/2009 inception), 25 (11/28/12), 12.5 (7/9/16), 6.25 (5/11/20), 3.125 (pending in 4/19/24),...), with the last and 32nd in 2140. After every halving, many inefficient Bitcoin miners go out of business. The remaining miners get lower reward in Bitcoins, but the Bitcoin price may adjust upward. So, some market equilibrium is reached, but it would be too simplistic to think that price doubling after each halving would keep all miners in business. Instead, about every 4 years, there is a huge shakeout in the Bitcoin mining industry. Among the cryptos, Bitcoin are unique in that their maximum possible number is fixed at 21 million Bitcoin (93.3% outstanding, 1/6/24), while their demand may keep rising; blocks are transaction records and not related to any specific numbers of Bitcoin. Others cryptos can just be issued on demand.
Math: Halving after 210,000 Bitcoin blocks. It takes an average of 10 minutes to find a new block. So, (60/10) x 24 x 365 = 52,560 blocks found in a year. The halving time in years = 210,000/52,560 = 3.995 years.
Image www.fidelitydigitalassets.com/sites/default/files/images/pages/FDAS%20Bitcoin%20Halving%20-%20Bitcoin%20Issuance%20Rate%20Over%20Time%20Chart.png
Fix fwc.widen.net/content/chhn2spais/png/FDAS%20Bitcoin%20Halving%20-%20Bitcoin%20Issuance%20Rate%20Over%20Time%20Chart%20(1).png?crop=true&anchor=0,0&color=ffffffff&u=84mofz&w=2048&h=1055
Fidelity www.fidelitydigitalassets.com/research-and-insights/understanding-bitcoin-halving
Wiki en.wikipedia.org/wiki/Bitcoin
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YBB Personal Finance
@ybb_Finance
(2/14/24, YBB)
A simple explanation of Bitcoin halving events when reward is halved.
Halving is after 210,000 Bitcoin blocks. Avg 10 min to find a per block. So, (60/10) x 24 x 365 = 52,560 blocks/year. Halving time in years = 210,000/52,560 = 3.995 years.
www.fidelitydigitalassets.com/research-and-insights/understanding-bitcoin-halving
A simple and understandable explanation of Bitcoin halving events. Every 4 years of so, the reward for finding new Bitcoin blocks is cut into half. The next halving in 04/2024 will be 4th such halving since inception (2009). The reward in Bitcoins per block has been 50 (01/2009 inception), 25 (11/28/12), 12.5 (7/9/16), 6.25 (5/11/20), 3.125 (
Math: Halving after 210,000 Bitcoin blocks. It takes an average of 10 minutes to find a new block. So, (60/10) x 24 x 365 = 52,560 blocks found in a year. The halving time in years = 210,000/52,560 = 3.995 years.
Image www.fidelitydigitalassets.com/sites/default/files/images/pages/FDAS%20Bitcoin%20Halving%20-%20Bitcoin%20Issuance%20Rate%20Over%20Time%20Chart.png
Fix fwc.widen.net/content/chhn2spais/png/FDAS%20Bitcoin%20Halving%20-%20Bitcoin%20Issuance%20Rate%20Over%20Time%20Chart%20(1).png?crop=true&anchor=0,0&color=ffffffff&u=84mofz&w=2048&h=1055
Fidelity www.fidelitydigitalassets.com/research-and-insights/understanding-bitcoin-halving
Wiki en.wikipedia.org/wiki/Bitcoin
Edit/Add. Related comments at Twitter LINK
YBB Personal Finance
@ybb_Finance
(2/14/24, YBB)
A simple explanation of Bitcoin halving events when reward is halved.
Halving is after 210,000 Bitcoin blocks. Avg 10 min to find a per block. So, (60/10) x 24 x 365 = 52,560 blocks/year. Halving time in years = 210,000/52,560 = 3.995 years.
www.fidelitydigitalassets.com/research-and-insights/understanding-bitcoin-halving