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Author Topic: How much money is produced every four years...  (Read 810 times)
geffaxiv-532
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June 18, 2012, 09:52:37 PM
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http://bitcoincharts.com/bitcoin/

Blocks last 24 hours: 151 blocks x 50 BTC = 7550 BTC x 365 days = 2755750 BTC x $5 USD = $13,778,750 USD

Is the above accurate?
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HonorMe
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June 18, 2012, 09:55:12 PM
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I'm not sure exactly, but i don't think it is as constant as there is a finite amount that will be produced, thus putting a cap on inflation.
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June 18, 2012, 10:02:19 PM
 #3

http://bitcoincharts.com/bitcoin/

Blocks last 24 hours: 151 blocks x 50 BTC = 7550 BTC x 365 days = 2755750 BTC x $5 USD = $13,778,750 USD

Is the above accurate?

Accurate only for that moment.  Once 10.5 million bitcoins have been issued, the block reward cuts in half.  This happens roughly every 4 years, and continues to cut in half every additional four years until the block reward drops below a single bit on the 64 bit integer that holds bitcoin values; after which point no more bitcoins will ever be issued.  This algo results in a total monetary base for bitcoins that is highly predictable and trends towards a (calculas) limit of 21 million bitcoins, but in practice will cease somewhat before hitting that limit.

"The powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the systems was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations. Each central bank...sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world."

- Carroll Quigley, CFR member, mentor to Bill Clinton, from 'Tragedy And Hope'
geffaxiv-532
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June 18, 2012, 10:38:22 PM
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I don't like how 10 million BTC has already been mined, I find that absurd.
Stephen Gornick
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June 18, 2012, 10:38:43 PM
 #5

http://bitcoincharts.com/bitcoin/

Blocks last 24 hours: 151 blocks x 50 BTC = 7550 BTC x 365 days = 2755750 BTC x $5 USD = $13,778,750 USD

Is the above accurate?

Well, your exchange rate is off.  For a while when bitcoin was trading $15 and higher, in USDs, there was over $100K USD worth of bitcoins mined each day.  A matter of months later at $2.25, that dropped to $16K USD worth.

So how much "money" is mined each day, depends on your definition of "money".

The target rate is for 7,200 BTC per day, through block 210,000 (expected to be reached in early December), then 3,600 BTC per day for the next 210,000 blocks (targeted to take four years), then 1,800 per day for the 210,000 blocks (another four years) following, etc.

Stephen Gornick
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June 18, 2012, 10:39:19 PM
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I don't like how 10 million BTC has already been mined, I find that absurd.

Why so?

InterCoin
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June 18, 2012, 10:47:37 PM
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10 million is a massive amount to have already been mined... thats like $70,000,000 Shocked
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June 18, 2012, 10:54:50 PM
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If the market thought it was absurd the exchange rate would have been lower to reflect that. (not to say the market cannot be irrational, it can and often is)

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June 19, 2012, 07:05:06 AM
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10 million is a massive amount to have already been mined... thats like $70,000,000 Shocked

The first bitcoins were mined by people investing their time and computer resources in a system which at the time was highly experimental and nobody really knew whether it was going to work or not. They took the risk, a huge risk in fact, and they deserve to see a return on their investment. They've earned every cent of it.

Will pretend to do unverifiable things (while actually eating an enchilada-style burrito) for bitcoins: 1K6d1EviQKX3SVKjPYmJGyWBb1avbmCFM4
the joint
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June 19, 2012, 07:07:08 AM
 #10

http://bitcoincharts.com/bitcoin/

Blocks last 24 hours: 151 blocks x 50 BTC = 7550 BTC x 365 days = 2755750 BTC x $5 USD = $13,778,750 USD

Is the above accurate?

Accurate only for that moment.  Once 10.5 million bitcoins have been issued, the block reward cuts in half.  This happens roughly every 4 years, and continues to cut in half every additional four years until the block reward drops below a single bit on the 64 bit integer that holds bitcoin values; after which point no more bitcoins will ever be issued.  This algo results in a total monetary base for bitcoins that is highly predictable and trends towards a (calculas) limit of 21 million bitcoins, but in practice will cease somewhat before hitting that limit.

Is this something like the kill screen in Donkey Kong?

rudrigorc2
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June 19, 2012, 07:17:13 AM
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10 million is a massive amount to have already been mined... thats like $70,000,000 Shocked

The first bitcoins were mined by people investing their time and computer resources in a system which at the time was highly experimental and nobody really knew whether it was going to work or not. They took the risk, a huge risk in fact, and they deserve to see a return on their investment. They've earned every cent of it.



Look at where the whole network was only 100 GHASH

more than 100 thousand blocks already were already mined in Jan/11

http://blockchain.info/block-height/103000  look how difficult? 18,437.64

5 million relatively easy bitcoins
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June 19, 2012, 07:44:58 AM
 #12

Look at where the whole network was only 100 GHASH

more than 100 thousand blocks already were already mined in Jan/11

http://blockchain.info/block-height/103000  look how difficult? 18,437.64

5 million relatively easy bitcoins

Which at the time were worth something on the order of a penny apiece, due to the fact that Bitcoin was an unproven system that very few people were using and were afraid to invest large amounts of real money in. Nobody at the time seriously thought (although they all hoped) that bitcoins would be worth anything near what they are today. The only reason bitcoins are worth what they are today is because these early adopters were prepared to take the risk of expending a large amount of effort into something that may well have turned out to be a complete failure. All investments are like this. Those who take the risks stand to reap the rewards, and they also stand to lose everything if it doesn't work out.

Will pretend to do unverifiable things (while actually eating an enchilada-style burrito) for bitcoins: 1K6d1EviQKX3SVKjPYmJGyWBb1avbmCFM4
rudrigorc2
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June 19, 2012, 08:00:43 AM
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Look at where the whole network was only 100 GHASH

more than 100 thousand blocks already were already mined in Jan/11

http://blockchain.info/block-height/103000  look how difficult? 18,437.64

5 million relatively easy bitcoins

Which at the time were worth something on the order of a penny apiece, due to the fact that Bitcoin was an unproven system that very few people were using and were afraid to invest large amounts of real money in. Nobody at the time seriously thought (although they all hoped) that bitcoins would be worth anything near what they are today. The only reason bitcoins are worth what they are today is because these early adopters were prepared to take the risk of expending a large amount of effort into something that may well have turned out to be a complete failure. All investments are like this. Those who take the risks stand to reap the rewards, and they also stand to lose everything if it doesn't work out.

Sure! My point is: there are some rich out there without any herculean effort, some people became rich mining with CPU!
The coins worth nothing at that time, and so were the costs to mine. People just accumulated some digits in a weird piece of software. Like a silly game.

I understand all that and all I can do is to thank all  early adopters who brought this currency into the future, which is now!
ALOIS
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June 19, 2012, 05:51:14 PM
 #14

as i know i blocks decreases month-by-month. So annual production of money isn't same.
rudrigorc2
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June 19, 2012, 10:56:36 PM
 #15

as i know i blocks decreases month-by-month. So annual production of money isn't same.

the algorithm regulates the difficulty every 2016 blocks to try keep constant the production of blocks aproximatelly 6 blocks/hour

qhen more people come with more hashing power, the difficulty rises.

block halves every 210.000 blocks. so, this day its already very near.
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