There is also another mechanism to encourage mining called transaction fees, which will grow in importance in the far future, but for now, the block reward is by far the largest financial incentive to encourage people to participate in the block creation process. In order to understand whats going to happen on Wednesday, its important to first understand how money creation in Bitcoin works. Currently, fo estimates that the average miner spends.3-0.6 on electricity and bandwidth for every 1 that they earn from mining. Outside of special circumstances, like how do you buy bitcoins online landlords paying for electricity or mining doubling as a heating system, mining with anything but an asic will not yield a profit at all. WordPress started accepting Bitcoin, and historically price has been highly correlated with search volume as well. You probably just want to know how this will effect the price of bitcoin.
The block reward is how new bitcoin is "minted" or brought into the economy. Projected to take place on Wednesday at around 18:00 UTC, for the first time ever in Bitcoin history, the rate at which new bitcoins are generated will permanently be cut by a factor of two, and people all over the Bitcoin community are debating what. Unit: nbspBitcoin, US Dollar, source: nbspBitcoinVisuals node (bitcoind learn More). Today each bitcoin is worth 13032.00. As time goes on and more blocks are added on top of that block, the consensus solidifies, and after four to six blocks, any attempt to fraudulently change the transaction history to your own benefit becomes impractical because of all the work that has already.