Current Block reward is 12.5 BTC = $6,438.00 * 12.5 = $80,475. We will discuss block reward and Bitcoin mining in this answer. Many people are not aware of Bitcoin mining while they just know how to invest make some profits. Bitcoin mining is no more profitable because of 82.02% of total Bitcoins are mined. So, out of 21 million Bitcoins, only 4.3 million Bitcoins left to be mined. It is estimated that 30% of these coins which are about 16.7 million coins can be destroyed or lost forever because of the crash in hard drive and misplaced private keys.
What is Bitcoin?
Bitcoin is an open-source ledger of transactions held on a decentralized network. It enables a user to perform transactions securely without any central authority as we discussed earlier. Tokens are not printed as dollars or euros but they are a digital signature which is produced by computers. The verification and security are provided by cryptographic functions.
Read Also – What is Ethereum Blockchain?
Who invented Bitcoin?
Bitcoin is developed by an individual or a group under the name of pseudonymous software developer known as Satoshi Nakamoto. In 2008, Bitcoin was released as a digital currency which is based on a mathematical proof.
How Bitcoin’s are mined?
Bitcoin mining is nothing but a process in which transactions are verified and added to the public ledger which is also known as BlockChain. The process of mining involves compiling recent transactions into blocks which are like a puzzle which requires computing power. For utilizing computational power by these Cryptocurrencies such as Bitcoin provide rewards also known as Block Reward for mining contribution to the network. So, to keep running these disruptive networks we do mining and as difficulty increases earning block rewards becomes more difficult.
Block Reward is not static because of mining reward involves halving when 210,000 blocks occur. It takes about 10 minutes to mine a block. First block reward was 50 bitcoins and has since “halved” twice. It takes about 4 years to occur a halving and after 64 total halvings, there will be no block reward for miners all 21 million Bitcoins will be in circulation which will occur in 2140.
Are you wondering that without any incentive how this Network will run?
Don’t worry Satoshi has played this game very carefully. Block Reward is not alone incentive which is received by miners. They also receive transaction fees which is associated with each transaction. Transaction fees will increase which will be enough to incentivize Miners. The higher the transaction fee is payed by you, the more likely a miner will process your transaction.