Bitcoin miners earn $20 million! Why reward reduce but the income is increasing?

Bitcoin miners earn $20 million! Why reward reduce but the income is increasing?

What is bitcoin mining?

Bitcoin mining refers to create trade blocks and attach it to the process of bitcoin blockchain. Each new block contains hundreds of transactions, where each transaction is from one or more bitcoin address transfer to other address to.

The process of creating blocks called bitcoin mining, building blocks and attach it to the process of block chain, each dug up a new block will give the miners part reward. As of 2017, the reward is 12.5 bitcoin. Therefore, to create any new blocks, and can create blocks faster than others, are able to get 12.5 bitcoin in each “dig” a block of reward.

The study by Dr. Hileman Garrick and Dr. Rauchs Michel wrote the study shows that bitcoin has been released, which is since 2008, bitcoin mining returns a total of more than $2 billion. It should be noted that each block mining reward every 4 years will be halved again.

It started in 2008 50 bitcoin reward for each block, each block in 2012 halved to reward 25 bitcoin, then halved to 12.5 coins per block award in 2016. So in the past, the miners dug up each new block to get more bitcoin.

However, with the value of bitcoin bitcoin per hit an all-time high of $1200, although the award is reduced, but the miners at present income should be much more than in the past.

The miners in the role of community development

The miners have been in recently because many people in the teeth of the storm, proposed to amend the bitcoin protocol, and this time the miners can play an important role. Bitcoin Unlimited is one of the proposed modifications, its purpose is to modify the bitcoin protocol and replace to run its software.

Bitcoin Core, or the main software version of bitcoin, also recently proposed a new proposal, called isolated witness, or SegWit. In these new proposals in a superb collection of beautiful things should choose which one? This time the miners can play an important role.

In this regard, the study finds that most miners understand their important role in protocol development.

The main focus of study include:

A. 70% large miners will assess its impact on the development agreement for high or very high, while for small miners this value is 51%.

A. Encryption currency mining map display, known as the mining equipment is geographically dispersed, but in some provinces China observed significant concentration.

More research results

This study reports some other important discoveries, including the estimation of the world bitcoin user number. According to this study, the global estimate of 2 million 900 thousand to 5 million 800 thousand active users of bitcoin. Most users in Europe and North america.

The study also found that 1876 people are working around the clock to encrypt the currency industry. This does not include some of the mineral company personnel, so the actual number may be greater.

[University of Cambridge alternative financial center (CCAF) affiliated to the University of Cambridge in the UK]. Dr. Hileman and Dr. Rauchs Garrick Michel, before the release of related research, research propositions as “global crypto currency benchmarking study”.

This article from the Bitcoinist, compiled by Lei ying.

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