The Importance of Bitcoin’s Block Reward
By 2020 everyone was familiar with Bitcoin, blockchain technology, and the famous block reward. Thanks to the incredible Bitcoin halving in May 2020, the block reward was cut in half, and this triggered a bull cycle in the market.
So, if you want to learn more about Bitcoin and its ecosystem, it is very important to take the time and learn about Bitcoin’s block reward. That said, in this article, we will cover important aspects of Bitcoin’s block reward.
The Value of The Block Reward
The block reward was developed as motivation for the miners to continue to contribute with their computing power and maintain the security of the blockchain network. The initial bock reward was 50 BTC, but after the halving event in 2012, it was cut to 25 BTC.
This continued to happen every four years, and in May 2020, the block reward was minimized to 6.25 BTC. As we mentioned, the main result was a bull cycle that generally happens after a halving because it creates a different relationship between supply and demand. Actually, the demand is higher for BTC than the supply.
As a result, the price of Bitcoin soared to over $10,000 and continued to increase throughout 2020, and by the end of the year, the value of Bitcoin was at a price point of over $20,000. In 2020 the Bitcoin’s price increased to over $60,000 thanks to the support of the business and the public sector and the reduced supply of BTC.
Support by Businesses
Businesses decided to accept BTC payments because they saw the benefits from the bull cycle and the value of Bitcoin. Online casinos are a great example of cutting-edge gaming platforms that are keeping up with the latest technological innovations, and some accept BTC payments on their sites.
Otherwise, on casino sites, users have their luck with roulette games. One great example is Novibet roulette, where you will find hundreds of top roulette games in many versions. Generally, there are many other casino games available, including slots, poker, craps, and others.
Bitcoin halving is the main event associated with Bitcoin’s block reward. It was designed in order to control the inflation rate of BTC, and because this is a decentralized cryptocurrency, this is the main tool of the blockchain network to self-regulate the supply of BTC and control the price.
Otherwise, the entire supply of Bitcoin tokens is capped at 21 million BTC, and this is why the bitcoin halving event has impacted not only the price of Bitcoin but also the overall supply. It is expected for Bitcoin having to continue to halve the block reward as long as there are BTC available for mining.
After the last Bitcoin is mined on the blockchain network, the transaction fees will become the primary source of compensation and also main motivation for the miners to keep working on the blockchain network. This is why the book reward is not only important for anyone that wants to become a miner or an investor, but it has a great impact on the operations of the blockchain network and the value of Bitcoin.