Bitcoin Forum
May 02, 2024, 03:23:39 PM *
News: Latest Bitcoin Core release: 27.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: The mining reward is less with every new block, actually  (Read 1805 times)
remotemass (OP)
Legendary
*
Offline Offline

Activity: 1117
Merit: 1016


ASMR El Salvador


View Profile WWW
March 24, 2013, 05:35:20 AM
Last edit: March 24, 2013, 05:46:09 AM by remotemass
 #1

If you see coins as ownership in the bitcoin network, enabling you to harness more power out of it, you can notice that the percentage of ownership that you earn with a mining reward is equal to: number of coins rewarded over the number of coins in circulation at that moment.
The mining reward is now of 25 BTC, roughly every ten minutes or so, but notice that the amount of coins in circulation is increasing with every reward, so if you see reward as such a percentage of ownership, you can see that the reward is actually decreasing with every reward, and not only every four years.
At the same time the bitcoin network is increasingly more valuable and useful, making the power you can harness with it with less percentage of it as such, compensate, as the network and usage of it scales.

{ Imagine a sequence of bits generated from the first decimal place of the square roots of whole integers that are irrational numbers. If the decimal falls between 0 and 5, it's considered bit 0, and if it falls between 5 and 10, it's considered bit 1. This sequence from a simple integer count of contiguous irrationals and their logical decimal expansion of the first decimal place is called the 'main irrational stream.' Our goal is to design a physical and optical computing system system that can detect when this stream starts matching a specific pattern of a given size of bits. bitcointalk.org/index.php?topic=166760.0 }
1714663419
Hero Member
*
Offline Offline

Posts: 1714663419

View Profile Personal Message (Offline)

Ignore
1714663419
Reply with quote  #2

1714663419
Report to moderator
1714663419
Hero Member
*
Offline Offline

Posts: 1714663419

View Profile Personal Message (Offline)

Ignore
1714663419
Reply with quote  #2

1714663419
Report to moderator
According to NIST and ECRYPT II, the cryptographic algorithms used in Bitcoin are expected to be strong until at least 2030. (After that, it will not be too difficult to transition to different algorithms.)
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
bg002h
Donator
Legendary
*
Offline Offline

Activity: 1463
Merit: 1047


I outlived my lifetime membership:)


View Profile WWW
March 24, 2013, 11:16:12 AM
 #2

It's called inflation. It's meant to help people want to spend their coins.

Hardforks aren't that hard. It’s getting others to use them that's hard.
1GCDzqmX2Cf513E8NeThNHxiYEivU1Chhe
gendal
Member
**
Offline Offline

Activity: 74
Merit: 14


View Profile
March 24, 2013, 11:21:22 AM
 #3

you can see that the reward is actually decreasing with every reward, and not only every four years.

Not really.  The rate of production is known in advance by everybody who participates.  So this predictable inflation in the supply of BTC can be factored in to everybody's assessment of the value of the currency.   The perceived value of the "earlier" coins already takes into account the expected future production.

Moreover, BTC is fungible:  the 25BTC reward you get for your block is indistinguishable (for all intents and purposes) to the 25BTC that the miner of the previous block earned.  If your BTC are somehow worth less, then so are his.

coastermonger
Sr. Member
****
Offline Offline

Activity: 367
Merit: 250

Find me at Bitrated


View Profile
March 24, 2013, 05:06:03 PM
 #4

Quote
(number of coins rewarded)/(the number of coins in circulation at that moment)

This is your equation

(Block reward + Transaction Fee Reward)/(the number of coins in circulation at that moment)*(The purchasing power of those coins)

If you're talking about rewards, This is what your equation should be

Bitrated user: Rees.
remotemass (OP)
Legendary
*
Offline Offline

Activity: 1117
Merit: 1016


ASMR El Salvador


View Profile WWW
March 24, 2013, 08:38:47 PM
 #5

(Block reward + Transaction Fee Reward)/(the number of coins in circulation at that moment)*(The purchasing power of those coins)

I think you mean:
(Block reward + Transaction Fee Reward)/(the number of coins in circulation at that moment)*(Bitcoin market cap)

{ Imagine a sequence of bits generated from the first decimal place of the square roots of whole integers that are irrational numbers. If the decimal falls between 0 and 5, it's considered bit 0, and if it falls between 5 and 10, it's considered bit 1. This sequence from a simple integer count of contiguous irrationals and their logical decimal expansion of the first decimal place is called the 'main irrational stream.' Our goal is to design a physical and optical computing system system that can detect when this stream starts matching a specific pattern of a given size of bits. bitcointalk.org/index.php?topic=166760.0 }
Pages: [1]
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!