What does mean "halving" actually? - page 2.

BrewMaster

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Quote from: Krislaw on May 01, 2020, 10:34:13 AM

Bitcoin halving can't be compared with salary because it's a crypto mining reward and price always to increase and circulation too.
As a miner, you get rewarded based of your contribution(mining power) in a mining pool.

in many ways it actually can be compared with what you are paid. and mining reward is literary paid for the work a miner does not their contribution. that is where the name "proof of work" comes from. the miner does a hard work and when they find the resulting hash, they publish it as a proof that they have done a certain amount of work to find it.

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Quote from: denzkilim on May 01, 2020, 10:11:34 AM

The answer can be easily found on google and also Coinmarketcap has and info tab about that too.
To make it simplified it's like you work in a certain company and you get a normal salary and with the event called halving they will make your salary 50% less than what you get before the halving and this will continue every four years.

Bitcoin halving can't be compared with salary because it's a crypto mining reward and price always to increase and circulation too.
As a miner, you get rewarded based of your contribution(mining power) in a mining pool. The more your mining power, the more your reward.
Reason why it can't be really compared with salary.

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Quote from: dothebeats on May 01, 2020, 10:00:18 AM

Why is this done in the first place and why not place a static pay rate to everyone who solves a block? This is done so as to not exhaust the supply cap in a short span of time. Imagine if the protocol still gives out 50 bitcoins per block mined to miners, we would have exhausted our 21M supply cap in 2017 and there's literally no incentive that keeps the miners hashing out on their machines to continue process tx which will result to the end of bitcoin.

If we go by your last sentence that means we will one day have an end to bitcoin? Because no matter how often the halving keeps happening every four years it will one day come to a day bitcoin will get exhausted out of the 21 million supply?

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Quote from: jmsk1 on May 01, 2020, 09:19:53 AM

i have seen too many places about bitcoin halving but nowhere found a good understanding. so wanted a clear explanation.

Hey we have an infographic that explains exactly that!

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The answer can be easily found on google and also Coinmarketcap has and info tab about that too.
To make it simplified it's like you work in a certain company and you get a normal salary and with the event called halving they will make your salary 50% less than what you get before the halving and this will continue every four years.

dothebeats

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It's basically cutting the mining reward into half, as was programmed to happen every 210000 blocks. On plain paper this sounds like a stupid idea to scare away miners from running their machines in order to profit, but theoretically this should still make the miners continue to use their machines for profit since by design, bitcoin only has 21M supply cap. And since it's getting rare as time goes by, its value would increase as was dictated by a deflationary model.

Why is this done in the first place and why not place a static pay rate to everyone who solves a block? This is done so as to not exhaust the supply cap in a short span of time. Imagine if the protocol still gives out 50 bitcoins per block mined to miners, we would have exhausted our 21M supply cap in 2017 and there's literally no incentive that keeps the miners hashing out on their machines to continue process tx which will result to the end of bitcoin.

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Currently, 1,800 bitcoins are generated per day(through mining) and enters the market. After the halving, which occurs every approximately 4 years, the bitcoins being generated per day halves. So in the next halving, which is in approximately 11 days, the bitcoins being generated per day goes down to 900 bitcoins per day.

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It's like if your boss says "I was paying you $20 per hour, but starting from the next week you will be paid $10"

To make it simple, miners receive a reward every time they mine a block, at the beginning they received 50 BTC per block. With the years passing and the previous halving the reward was reduced, with the next event, it will be 6.25 BTC.

With Bitcoin the 'pay rate' (the miners' reward) changes every 210 000 blocks, this change is what we call "halving"

You can find literally thousands of explanation on search engines

jmsk1

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i have seen too many places about bitcoin halving but nowhere found a good understanding. so wanted a clear explanation.

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