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Author Topic: [2016-06-11] The Bitcoin Halving – What Will Change?  (Read 333 times)
secone
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June 11, 2016, 07:16:08 AM
 #1

The most noticeable change comes in the form of a reduced Bitcoin block reward. When Bitcoin was initially launched seven years ago, there was a block reward of 50 BTC. However, Satoshi Nakamoto, the creator of Bitcoin, put in periodic checkpoints during which this block reward would be cut in half.

The first halving occurred a few years ago when the Bitcoin block reward was reduced from 50 coins to 25 BTC. However, this time, the block reward will be cut in half once again, resulting in 12.5 BTC being generated by the mining process every ten minutes. As this happens, the available Bitcoin supply will keep growing every day, but at a slower rate than before.

Bitcoin miners will be the ones feeling the biggest impact from this change. Miners, who confirm network transactions to be included in every block, are rewarded in the form of a share of every block reward. This reward is based on the proportionate amount of computational power they contributed to finding that specific block.

A lot of things have changed in the Bitcoin mining game since the previous halving, though. Mining hardware has become a lot more power efficient, but it still rather costly to mine at home for most people. Moreover, achieving a return on investment after buying a Bitcoin miner is always a challenge. A reduced block reward could put some miners an unprofitable situation, albeit that hinges on what the Bitcoin price will do.


http://themerkle.com/the-bitcoin-halving-what-will-change/

 
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June 11, 2016, 04:22:29 PM
 #2

why miners will be harmed by the halving although the price rises since last summer by triple time approximately ? this increase for sure will compensate the block reward halving for their revenue
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June 11, 2016, 06:45:36 PM
Last edit: June 11, 2016, 06:59:35 PM by Lethn
 #3

why miners will be harmed by the halving although the price rises since last summer by triple time approximately ? this increase for sure will compensate the block reward halving for their revenue

That's my theory as well, we should also bear in mind that as transaction volume rises, Bitcoin miners are getting a cut of the fees, my thinking is that not only will the price rise mean Bitcoin miners will still make the same money but also they might even start making even more money than before as they are getting a cut of all the transactions on the network as well. Owning hashing power to me in the future will be the equivalent of if a central bank decided to publicly trade shares, you would be getting a cut of the entire economy, in this case with Bitcoin, you're getting a cut of global trade due to all the transactions happening everywhere.

So in the long run, the more people and big companies adopt Bitcoin, the more money miners make.
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June 11, 2016, 08:15:04 PM
 #4

Just a bunch of crap for a clickbait article.

We survived the other halving, we'll survive this one too. Sensationalism is out of place here.

fortitudinem multis - catenum regit omnia
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