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Bitcoin’s “Halving” Is Bad For Miners, Good For Everyone Else

The bitcoin network underwent a significant change on Monday as the number of new bitcoins produced in each block fell by half. This is according to a schedule established by bitcoin founder Satoshi Nakamoto almost 12 years ago.

Previously, each block in the blockchain came with 12.5 new bitcoins worth roughly 110,000.Noweachblockincludesonly6.25newbitcoinswortharound110,000. Now each block includes only 6.25 new bitcoins worth around55,000.

That’s a challenge for the bitcoin mining industry, which derives the lion’s share of its income from these block rewards. But it has a happy side effect for everyone else: the bitcoin network’s energy consumption is likely to fall in the coming months as lower profits from bitcoin mining force miners to tighten their belts.