Thanks to the halving, Bitcoin inflation decreases
Posted: Mon Jan 27, 2025 8:59 am
Reward distribution systems
Reward Distribution in PoW
In the Bitcoin network, miners receive a reward for each block, which consists of a transaction fee and a fixed price for a new block. However, every 4 years, after a certain number of blocks have been mined, this amount is cut in half. This process is called halving and is included in the source code of the Bitcoin protocol.
over time. At some point, it will reach 0%, meaning miners will lebanon number data have mined all of the 21 million BTC “digital coins” that exist.
Halving the "coins" used for rewards doubles the price of Bitcoin or increases transaction fees - otherwise miners would not be able to make a profit and would turn off their equipment.
This is because the block size is fixed, and updates like the Schnorr authentication scheme will help improve the current number of transactions per second, but for the growing number of users these measures will not be enough.
Reward Distribution in PoW
In the Bitcoin network, miners receive a reward for each block, which consists of a transaction fee and a fixed price for a new block. However, every 4 years, after a certain number of blocks have been mined, this amount is cut in half. This process is called halving and is included in the source code of the Bitcoin protocol.
over time. At some point, it will reach 0%, meaning miners will lebanon number data have mined all of the 21 million BTC “digital coins” that exist.
Halving the "coins" used for rewards doubles the price of Bitcoin or increases transaction fees - otherwise miners would not be able to make a profit and would turn off their equipment.
This is because the block size is fixed, and updates like the Schnorr authentication scheme will help improve the current number of transactions per second, but for the growing number of users these measures will not be enough.