Thread by @RitaMkpado

Did you know that currently, approximately every 10 minutes, $6.25 #Bitcoin are minted and released into circulation?

A Quick #Thread on
#Block Rewards and #Bitcoin Halving
🧵🪀

A #Bitcoin halving is the process of dividing by half the rewards of mining #Bitcoin after each set of 210,000 blocks is mined/ approximately every 4years.

💡In 2009, When Bitcoin was created, the #Rewards for each block was 50 #bitcoins in addition to the transaction fees

1/

That was from 2009-2012, 50 #Bitcoins were minted as block rewards every 10 minutes(it takes approximately 10 minutes to find the hash of a block)

After the first halving, the rate of Bitcoin emissions reduced by half and as at

💡2012, 25 #Bitcoin was the Block #Rewards

2/

💡 In 2016, #Bitcoin Experienced another reduced #inflation and #block rewards was 12.5btc every 10 mins and then as at

💡May 11, 2020 the #Rewards for miners became 6.25 bitcoins per block, which is the current rewards for expending computing energy to do the "work"

3/

💡by the year 2024 block rewards will be Halved to 3.125

This #rewards system will continue until around the year 2140, when the limit of 21M is mined.

I know you may be wondering, oh if you're going to keep reducing my rewards, I think it's better I stop the "work"

4/

Hold it Dear, let me explain further

At that point, Where the limit of Bitcoin to be mined has been reached, miners will then be rewarded with transaction fees alone that network users will pay for processing transactions.

5/

These transaction fees is what helps to keep miners incentivized and continue to do the "work" to keep the Network secure.

Also by reducing the block rewards of mining Bitcoin, It limits the supply of new coins, so prices could rise if demand remains strong and increases.

6/

As of April 2022, the number of Bitcoins that have been mined reached 19 million.
Whoops!
So we have 2million more to go

7/

If you enjoyed this tweet, kindly help share the first tweet, and let's onboard more people to #Web3 one block at a time.
Follow me on @That_DEFI_GIRL for more Educational #cryptocurrency and #DeFi Contents.

Together we can keep #Chaining_the_blocks