12.5BTC GUARANTEE APRROXIMATLY EVERY 10MINS

[omone1]

Bitcoin is such a fascinating technology, it seeks to solve the long aged problem associated with the traditional banking system, through a decentralized peer-peer trusted network called the blockchain. Bitcoin is just similar to gold that people are willing to pay anything for in the hope of future appreciation in overall value. while the dollar is backed by government legislation, and has no commodity backing it up. But the bitcoin is been backed by proof-of-work. For example, when the government needs money, they simply print, and when there is no production or export of goods to meet up with the excess cash, it gives rise to high-inflation, or even hyperinflation like in the case of Zimbabwe wherein money failed and their currency became useless. The case will not be so with bitcoin as we already know that it's programmed in such a way to have a fixed supply of 21million bitcoin in it entire life. It will be wise for anyone to buy as much as they can and keep them for the future.

Some pundit, IT gurus and economics think and believe some billions of the world population will use bitcoin in the future, let's think about what this will be like when this prediction comes to pass. The value  will never remain the same. The issue of bitcoin is very complex and wide, One of the things that actually fascinate me is the economic reward.

MINERS GET  A DAILY REWARD OF 1,800BTC

The process of printing cash/fiat(walking corpse) is called minting while the process of getting a new bitcoin is called miners, and mining are done by specialized computers, this consumes a lot of power, through the solving a difficult mathematical set. As a reward to the miners a certain amount of bitcoin is released as a reward.  This reward is currently 12.5BTC per block and new blocks are created approximately every 10mins, the block reward is halved every 4years, until the total number of bitcoins are mined to zero. We expect a halving of the reward by year 2020. Simple Mathematics: If 12.5BTC are released every 10mins, therefore 75BTC are released every hour and when we multiply this by 24, then 1,800BTC are released every 24hrs been reward for discovering a new block by miners, the good part of this is that: any miner who is able to successfully guess a new consensus block will be rewarded with 12.5BTC, this is not mere feet to come through. The difficulty level of the bitcoin mining does increase at approximately 2016 block which is about 2weeks, which makes it very competitive and complex. Proof-Of-work(POW).

The above write up is just a tip of an iceberg about the bitcoin, this knowledge was partly  gotten from Nicosia University, Cyprus. Free Online Cryptocurrency course

[pushups44]

Let's not forget in a little more than a year this mining reward will get cut in half, and despite the 1,800 bitcoins mined daily, an amount greater than this is being hoarded by the biggest wallets. I suspect the purchases of bitcoin over the counter are keeping the price suppressed, but as we approach the halving there will be no way to keep the suppression going.

[manfredmann]

Are you sure that is how BTC mining works? I thought the BTC supply is already identified which is around 21M and that miners will going to mine BTC if there are transaction being made which it called as transaction fee. This fee is in terms of BTC for the miners and some for the the exchange and this will be deducted in every BTC transaction. Am I right?

[omone1]

Are you sure that is how BTC mining works? I thought the BTC supply is already identified which is around 21M and that miners will going to mine BTC if there are transaction being made which it called as transaction fee. This fee is in terms of BTC for the miners and some for the the exchange and this will be deducted in every BTC transaction. Am I right?

Well, over 80% of the total supply of the bitcoin has been mined, the first block reward was 50BTC per block, and got halved to 25BTC per block, and now 12.5BTC, next year, it will be 6.25BTC, it its expected to stop at year 2140. There is difference between block reward and confirmation reward which comes in terms of transaction fee.

[franky1]

Are you sure that is how BTC mining works? I thought the BTC supply is already identified which is around 21M and that miners will going to mine BTC if there are transaction being made which it called as transaction fee. This fee is in terms of BTC for the miners and some for the the exchange and this will be deducted in every BTC transaction. Am I right?

its more like in 2009 bitcoin started off with CREATING 50 new coins for every block solved. which every 210,000 blocks(~4 years) the reward halved.
this in human terms means roughly ever 4 years the reward goes as follows
50coins each block for 210,000 blocks
25coins each block  for 210,000 blocks
12.5coins each block  for 210,000 blocks
6.25coins each block  for 210,000 blocks
and so on. until the decimal(satoshi) level is so small it cant be halved, which will happen in the year ~2140
adding it all up means that roughly but not exactly 21mill coins would have been created by ~2140.

as for the tx fee. this was a later after thought as a way to deter spamming blocks with thousands of transactions of useless utility. by making it cost something to add a transaction to a block. the fee's are not creating new coins, but spending existing coins. thus at the moment pools can create 12.5 coins for solving a block and as a bonus get X existing coins for adding transactions to the block

and to clarify the topics mis understanding about the block timing/difficulty adjusting
the technicals is more so that there is a rule in which every 2016 blocks, if made under or over 2 weeks. the difficulty is adjusted up OR down to try to keep 2016 blocks being mined per fortnight.. which then using maths(to visualise it more simply) works out as ~144 blocks a day or 1 block ~ every 10 minutes.

its not a rule based on 10 minutes that then gets calculated out to a fortnight. its more a 2016 block rule that gets adjusted to stay inline with a fortnight which then (purely for human visual)calculates down to ~10 minutes average.