In may 2020, there will be another halving Bitcoin. Because of this, the reward miners for the extraction of each block will be reduced exactly twice — from the current 12.5 to 6.25 BTC. According to the Protocol of cryptocurrencies, halving should take place every 210,000 blocks, or roughly four years. Thanks to this rule we can predict how many coins will be to miners at any time. Including a hundred years later.
A little reminder. The block consists of information about transactions in Bitcoin network. Each block can be represented as a page in the Ledger that is the blockchain. In the case of cryptocurrencies pages cannot "pull" the blocks are logged into it forever. Read more about this topic, we wrote in this article.
Each coin in the account
So, around may of next year, the reward miners will drop from 12.5 to 6.25 BTC. Recall, the release of new bitcoins is fixed and predictable — by the year 2140 will produce the last coin out of 21 million. It’s funny that before that, for each block miners will get only 1 Satoshi per block.
1 Satoshi = 0.00000001 BTC. This is the smallest indivisible part of bitcoin.
For clarity: here the value of awards after each halving that happened or will happen in the future. Compared to 2140 year now miners get 1.25 billion more crypto-currencies.
Mining Bitcoin began on 3 January 2009, when the Creator of the cryptocurrency Satoshi Nakamoto mined the first block. Before the first halving miners were given 50 BTC as a reward for blocks or approximately 420 thousand dollars at the current rate.
Nakamoto wanted to artificially increase the demand for the digital asset in the future due to the fixed reduction of the supply of Bitcoin. That is new coins on the network every four years, will become less, and not Vice versa — as is the case with the national currencies. This trait makes bitcoin similar to gold. In the end, the reserves of the precious metal on Earth is not unlimited in the future as the volume of its production will definitely fall.
After the year 2140 the miners will be completely deprived of allowances for the extraction of blocks. It is expected that by the time they can provide themselves only through transaction fees. If the bitcoin becomes really popular method of payment in each block Bitcoin in 120 years there will be tens of thousands of transactions.
Also in the distant future we can expect a mass transition to renewable sources of energy. The mining hardware also has become more energy efficient, which will reduce production costs of coins. And it will support the network of Bitcoin is more profitable than it is today.
Of course, all this is just speculation. No one knows what will be Bitcoin price in the future and “will survive” if he is for a long period of time. User under the name Coolasfirehotasice expressed the assumption that 1 Satoshi in the end will rise up to one thousand dollars.
That 1 Satoshi might be equivalent to 1000$
— Coolasfirehotasice (@SajeelAhmad88) November 10, 2019
Analysts suggest that by 2030 a large part of the reward miners will be just the fee, not the reward blocks. When the sum of commissions exceeds the reward for a block will hold so-called crossover. Read more about the fate of Bitcoin mining after the last block we wrote in this article.
Perhaps I should buy some Bitcoin while it’s so cheap. More useful information can be found in our cryptodata millionaires. Join.
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