Bitcoin’s hashrate is reaching all-time highs, and it’s causing confusion about “the halvening” on Twitter.Read MoreCoinDesk
Bitcoin’s hashrate – the computational effort required to secure the network – is teetering on historical highs, raising concerns from a few people on Twitter about an accelerated Bitcoin halving schedule. (the reward for mining a block is halved approximately every four years).
Should they be worried? Not really. Bitcoin’s algorithm prevents acceleration of the halving schedule, a developer highlighted.
Bitcoin miners process transactions and compete to add a new block to the Bitcoin blockchain roughly every 10 minutes. Several factors (for example, number of miners or technological improvements) can disrupt that 10-minute rhythm, making it slightly easier or a little more difficult to mine blocks.
The Bitcoin algorithm monitors the level of difficulty and adjusts it every 2,016 blocks (approximately every two weeks) to maintain that 10-minute block time.
The algorithm also controls how many bitcoins miners receive as a reward for processing transactions and securing the network.
When Bitcoin was launched in 2009, miners received 50 bitcoins for successfully mining a block. That reward (called a “subsidy”) is halved every 210,000 blocks (roughly every four years), and the next halving will take place in 2024.
So can a jump in hashrate push that date to 2023 as some are claiming? The short answer is, no.
Changes in hashrate will not significantly alter Bitcoin’s halving schedule because Bitcoin’s algorithm prevents wild variations in block time by adjusting difficulty to match whatever external conditions exist at the time.
There may be small changes in dates here and there, but nothing significant enough to push the halving schedule from 2024 to 2023.
One Bitcoin developer tweeted his perspective:
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
With the price surging above $90,000, you’re likely all too aware that everything that isn’t…
While the last year or two have seen a number of proposals for covenant-proposing extensions…
Picture this, dear reader: It’s 2016, and for the princely sum of $288,400, you could…
Follow Nikolaus On X Here Today, Fox Business’s Eleanor Terrett revealed that the Pennsylvania House…
Look, I am not an expert in public markets, but raising money to buy more…
Bitcoin set a new all-time high yesterday, reaching $93,483, continuing its impressive rally without significant…