The week after bitcoin mining reward halving, ForkLog decided to compile a short overview on the history of mining methods.
Generally speaking, bitcoin mining is a process of cryptographic calculations. As we know, bitcoins are mined in blocks, and the more there are generated coins altogether, the smaller is the block size. Initially, a block was just 50 BTC, but the number of mined coins halves each 210,000 blocks. Thus, the reward for each found block also halves with some periodicity. In economic terms, this model, aka halving, is required to control the currency’s inflation rate.
The very process of mining requires computational capacity, time, and power expenses. The longer you mine bitcoins, the more power intensive the mining becomes.
The increasing speed of generated bitcoins is reversely proportional and exponentially drops. The total number of coins ever to be mined is 21,000,000. It will never exceed this number. This process looks as follows: