Cryptocurrency Q&A
How much is a block reward if all 21 million bitcoins are mined?
How much is a block reward if all 21 million bitcoins are mined?
DiamondStorm
Thu Jul 11 2024
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5 answers
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With the finite supply of 21 million bitcoins in existence, one might wonder: what is the value of a block reward once all bitcoins are mined? The original block reward for mining a Bitcoin block was 50 bitcoins, which halved every 210,000 blocks approximately every four years. This process, known as 'halving', ensures the scarcity of bitcoins and rewards miners with fewer coins over time. However, once the 21 millionth bitcoin is mined, there will be no more bitcoins to reward miners. This begs the question: how will miners be incentivized to continue securing the network? It's likely that miners will rely on transaction fees to compensate for their efforts, as the block reward will no longer exist. But the precise value of a block reward at that point remains unknown, as it's contingent upon market conditions and the network's future evolution.
5 answers
SumoPowerful
Sat Jul 13 2024
As the block reward diminishes, miners are faced with a question: What happens when all 21 million Bitcoins have been mined? Currently, miners rely heavily on the block reward as their primary source of income.
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alexander_jackson_athlete
Sat Jul 13 2024
The current block reward for Bitcoin mining stands at 6.26 BTC per block. However, the future of this reward is set to undergo significant changes.
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CryptoBaron
Sat Jul 13 2024
It is projected that the block reward will undergo 30 more halvings until it eventually reaches 0.000000011641532 BTC per block. This minute amount is calculated by dividing the current reward of 6.25 BTC by two 29 times.
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BonsaiBeauty
Sat Jul 13 2024
This gradual reduction in block reward is a fundamental aspect of Bitcoin's monetary policy, designed to limit the total supply of Bitcoins to 21 million.
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CryptoBaron
Fri Jul 12 2024
With the diminishing block reward, miners will need to seek alternative sources of revenue to sustain their operations. This could include transaction fees, which are currently a small fraction of miners' income but are expected to become more significant in the future.
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