Bitcoin (BTC) is a peer-to-peer digital asset that operates without a central authority. Transactions are validated by participants on the network using cryptographic methods and added to a publicly accessible ledger known as the blockchain. This validation process, referred to as mining, secures the network. Roughly every 10 minutes, the miner who discovers the next block is permitted by the network to claim all transaction fees from the block's included transactions, along with a fixed block reward of newly issued bitcoins.
The concept of Bitcoin was introduced in 2008 by an unidentified creator or group going by the pseudonym Satoshi Nakamoto. It became operational in 2009 with the release of the first open-source software implementation. The term "bitcoin" itself was outlined in a white paper published on October 31, 2008: https://bitcoin.org/bitcoin.pdf
Explore the tokenomics of Bitcoin (BTC) and review the project details below.
What is the allocation for Bitcoin (BTC)?
Bitcoin distribution, also known as mining, takes place through a decentralized process where newly generated coins are awarded to the miner who successfully validates a new block. Bitcoin has no pre-defined allocation. Speculation persists regarding "Satoshi's Bitcoin Holding" due to alleged early mining, yet concrete proof of ownership remains elusive. All mined Bitcoin is considered in use, except for certain addresses that are confirmed to be inaccessible, known as "burned" Bitcoin addresses.
What is the supply schedule for Bitcoin (BTC)?
Bitcoin's supply is programmed to have a hard-capped limit of 21,000,000 coins that will ever be mined into existence. On the 3rd of January in 2009, the Bitcoin Network began with what's known as the Genesis Block. Miners, who validate transactions, used to receive a full reward for every 210,000 blocks they processed, which happened approximately every four years. This process, called "halving," means that the rewards for miners are cut in half. This will keep occurring every 210,000 blocks until all 21 million bitcoins have been created, which is anticipated to be around the year 2142. Once those 21 million bitcoins are made, there won't be any more new ones. From then on, miners will make money from the fees paid for transactions.