Tutorials:Bitcoin Client Released

Quest: Bitcoin Client Released

1. Read the email where the Bitcoin client was released:

Bitcoin Client Released

Task

1. Read the email.
2. How many Bitcoins were mined in the first four years?

Exercise

• The total number of Bitcoins will be capped at 21 million.
• Bitcoins are distributed to network nodes when they add blocks (transactions processed in blocks).
• The reward amount is halved approximately every 4 years.

Economic Incentive:

• Network nodes receive Bitcoin as an incentive to process transactions and maintain the database.
• It is anticipated that when block rewards diminish, the system will sustain itself through transaction fees determined by open market competition.
• Some nodes may even process transactions for free, ensuring the network’s continued operation.