Carmelo_Alemán
A Peculiarity About Bitcoin
After the halving on April 20, 2024, Bitcoin reduced the mining rewards to 3.125 BTC per mined block. The idea is that one block is mined every 10 minutes, and the miner is rewarded with 3.125 BTC. If we do the math, miners should be earning 450 BTC per day from mining. But is this really the case? Let’s go through the calculations and what actually happens On-Chain. The theory says that one block is mined every 10 minutes in Bitcoin, so 6 blocks are mined per hour. That gives us: 24 x 6 = 144 blocks/day. Now, multiplying by 3.125 BTC per block mined gives us the 450 BTC released daily: BTC mined per day = (3.125 BTC/block every 10 min) x 6 x 24 = 450 BTC mined per day But reality is different. On-Chain, we use the CryptoQuant metric "Bitcoin: Total Supply" with daily resolution. See graph We can observe that 450 BTC are not mined every day. Instead, the number of BTC mined daily is variable. To see this, we simply subtract the BTC supply of one day from the previous day — and we’ll know how many BTC were mined on a specific day. Example: If we want to know how many BTC were mined on March 23, we subtract the supply of March 23 from that of March 24, and we get the BTC mined on March 23. This way, we find that: – On March 23: 487 BTC were mined – On April 9: 453 BTC were mined – On April 20: 394 BTC were mined The numbers are always variable and depend on the mining difficulty set by Bitcoin. The higher the difficulty to mine a block, the longer it will take for miners to mine it — and therefore, fewer BTC will be released. In this way, we can also determine how many blocks were mined per day. We simply divide the number of BTC mined on a given day by 3.125 BTC. For example, on April 20, 394 BTC / 3.125 BTC = 126 blocks. Conclusion: Most metrics can provide much more insight than what initially meets the eye. ✍️ Written by Carmelo Alemán 📲 Connect with me: ◾ X: @oro_crypto ◾ YouTube: OroCryptoCanal ◾ Email: [email protected]