economicsfundamentals

Block reward

Definition

The block reward is how new bitcoin enters circulation. It started at 50 BTC per block in 2009 and is cut in half at every halving, gradually releasing all 21 million coins over time while giving miners an incentive to secure the network.

Example

After the 2024 halving, the block reward dropped from 6.25 BTC to 3.125 BTC per block.

Related Terms

Mining

The process of using computational power to verify transactions and add new blocks to the blockchain.

Halving

An event that cuts the Bitcoin block reward in half approximately every four years.

Bitcoin

A decentralized digital currency that operates without a central bank or single administrator.

Related Articles

What is Proof of Work?

Proof of work is the engine that keeps Bitcoin secure. Learn how miners compete to protect the network.

7 min read Read More →

The Bitcoin Whitepaper Explained

In 2008, Satoshi Nakamoto published nine pages that changed money forever. Here is what the Bitcoin whitepaper says in plain English.

4 min read Read More →

What is the Block Reward?

The block reward is how new Bitcoin enters circulation. Learn how it works, why it shrinks over time, and what happens when it runs out.

4 min read Read More →

Why Does Bitcoin Have Value?

Bitcoin has no CEO, no army, and no gold backing it. So where does the value come from?

7 min read Read More →