why is there only 21 million Bitcoins Day 6

Day 6

Chapter 1

A complete crash course for beginners.

Why is there only 21

Million Bitcoins?

There will only ever be 21,000,000 BTC

found. This is based on the fact that

when Bitcoin started, the reward was 50

BTC, and every 210,000 blocks, the

reward is divided in half. Given that there

is a new block found every 10 minutes ,

we know that the rate is 6 blocks per

hour. Given 24 hours in a day we then

know there are 144 new blocks found per

day. With the reward currently set at 25

BTC per new block, the total new BTC

entering the network per day is 3,600.

Bitcoin started January 3, 2009.

The first

Block halving was on November 28, 2012.

About every four years the block reward

will half again. Due to this continuous

halving we will approach but never reach

21 million. Well that’s what math would

have you believe, but due to the

limitations of precision it will occur in

about 100 years. The Block reward from

2009 through 2012 was 50 BTC. This

constitutes the first 210,000 Blocks. As a

result half of all the Bitcoins that will ever

be in existence will have been found in

the first four years. Then from 2012

through 2016 the reward will be 25 BTC

per new block found. As we are entering

in third block so the reward will be 12.5

bitcoins every day however this period

one fourth of the remaining Bitcoins will

be found. This will continue for about the

next 100 years.

Next Topic

Volatility of Bitcoin Prices

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