From 06155bcb20b748729a18bcc2b7f6523dc52f7788 Mon Sep 17 00:00:00 2001 From: Lornestar Date: Mon, 25 Aug 2014 01:52:05 +0800 Subject: [PATCH] Never heard that ex nihilo before, no need --- ch08.asciidoc | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/ch08.asciidoc b/ch08.asciidoc index 0f81d186..89b2cd0e 100644 --- a/ch08.asciidoc +++ b/ch08.asciidoc @@ -16,7 +16,7 @@ In this chapter, we will first examine mining as a monetary supply mechanism and ==== Bitcoin Economics and Currency Creation -Bitcoins are "minted" during the creation of each block at a fixed and diminishing rate. Each block, generated on average every 10 minutes, contains entirely new bitcoins, created ex nihilo (from nothing). Every 210,000 blocks or approximately every four years the currency issuance rate is decreased by 50%. For the first four years of operation of the network, each block contained 50 new bitcoin. In November of 2012, the new bitcoin issuance rate was decreased to 25 bitcoin per block and it will decrease again to 12.5 bitcoin at block 420,000, which will be mined sometime in 2016. The rate of new coins decreases like this exponentially over 64 "halvings", until block 13,230,000 (mined approximately in year 2137) when it reaches the minimum currency unit of 1 satoshi. Finally, after 13.44 million blocks, in approximately 2140, all 2,099,999,997,690,000 satoshis, or almost 21 million bitcoin will be issued. Thereafter, blocks will contain no new bitcoin, and miners will be rewarded solely through the transaction fees. +Bitcoins are "minted" during the creation of each block at a fixed and diminishing rate. Each block, generated on average every 10 minutes, contains entirely new bitcoins, created from nothing. Every 210,000 blocks or approximately every four years the currency issuance rate is decreased by 50%. For the first four years of operation of the network, each block contained 50 new bitcoin. In November of 2012, the new bitcoin issuance rate was decreased to 25 bitcoin per block and it will decrease again to 12.5 bitcoin at block 420,000, which will be mined sometime in 2016. The rate of new coins decreases like this exponentially over 64 "halvings", until block 13,230,000 (mined approximately in year 2137) when it reaches the minimum currency unit of 1 satoshi. Finally, after 13.44 million blocks, in approximately 2140, all 2,099,999,997,690,000 satoshis, or almost 21 million bitcoin will be issued. Thereafter, blocks will contain no new bitcoin, and miners will be rewarded solely through the transaction fees. [[bitcoin_money_supply]] .Supply of bitcoin currency over time based on a geometrically decreasing issuance rate