Getting started with blockchain | The total amount of Bitcoin is constant at 21 million. What should I do after I finish the excavation?

Author | Sanli

Produced|Baihua blockchain (ID: hellobtc)

In the recent message, many newcomers are asking Bitcoin to halve in about four years. What should I do after I finish the excavation? Where does the miner reward come from, and what is the reward? What if the total amount is not enough? Today we will talk about the total amount of bitcoin and the reward of miners.

01 What is the total amount of Bitcoin? How was it learned?

In 2009, Satoshi Nakamoto dug up the Bitcoin creation block and generated 50 bitcoins. According to the Bitcoin mechanism, the next block will appear every 10 minutes, every 210,000 blocks. The reward will be halved.

In other words, the reward for the first 210,000 blocks is 50 bitcoins; from the 210001 block to the 420000 block, the reward for each block is 25 bitcoins. Calculated according to the output time of each block is about 10 minutes, the output time per 210,000 blocks is about 4 years, which is the halving of the 4 years often mentioned.

Four years of change, about 210,000 blocks will be produced every four years. Each block in the first four years is 50 bitcoins; in the second four years each block is 25 bitcoin; in the third four years each block is 12.5 bitcoin, and so on until all Dig up.

That is (50+25+12.5+6.25+3.125+1.5625+…+0.00000001)×2100≈210000, until about 2140 or so.

02 In addition to Bitcoin, can other coins be dug?

In addition to bitcoin, other coins can be dug. However, different mining machines can dig different coins. If the algorithmic mechanism of the two coins is the same, you can use a mining machine to dig different coins. Otherwise, there is no way to use a mining machine to dig different types of currencies at the same time, or the mining efficiency is very low, because the mining machines are customized according to specific algorithms.

In addition, the miner will dig the bitcoin rewards for bitcoin, and the lite will reward the Litecoin, so the rewarded currency depends on what you dig.

03 What should I do if I don’t use it after I finish it?

Unrestricted currency issuance in various countries has made money less and less valuable. The emergence of bitcoin has brought about a solution to the problem of inflation.

As it becomes more and more familiar to the public, the total amount of Bitcoin is constant at 21 million, which can avoid inflation. If it succeeds in the future, it will be applied in a large amount. Even if it is dug up around 2140, it will not be enough. Lead to deflation?

As mentioned earlier, the smallest unit of Bitcoin is Cong, only one billionth of a bitcoin. The value of Bitcoin can be subdivided into small ones, so you don't have to worry about it in the short term.

In addition, if it is really 2140 years, facing the situation of being dug, bitcoin is just a form of digital currency development to date, in addition to Ethereum, EOS, etc. can be used. However, if it can be issued without restrictions, it will be the same as the French currency and lose its value.

In addition, after the bitcoin was dug up, the issue of miners’ rewards, Nakamoto said:

As long as a given amount of electronic money has entered circulation, the incentive mechanism can be gradually converted to rely solely on transaction fees.

Therefore, even if the coins are dug up, the miners can continue to maintain the entire network system through the handling fee.

What do you think about the fact that the constant amount of Bitcoin will lead to deflation? Feel free to share your opinion in the message area.

——End——

 

『Declaration : This series of content is only for the introduction of blockchain science, and does not constitute any investment advice or advice. If there are any errors or omissions, please leave a message.