Barry on Nostr: Here, n represents the nth halving event. As n increases, the block reward decreases ...

Here, n represents the nth halving event. As n increases, the block reward decreases geometrically, hence the name "geometric progression". These halving events continue until the block reward becomes so small that it rounds to zero. This process is expected to continue until around 2140, when 21 million Bitcoins will be mined. The mathematics behind Bitcoin ensure that issuance is predictable and diminishing, creating an environment of scarcity that encourages preservation of value over time. This has led to Bitcoin being labeled “digital gold”. It is a testament to the genius of Satoshi Nakamoto that he not only created a functional decentralized currency, but also gave it properties that incentivize savings and long-term investment through a deflationary monetary policy. Understanding this formula is more than just understanding how cryptocurrencies technically work. It’s about appreciating the beauty of the fusion of economic theory, cryptography, and mathematics that underpins what may be one of the most important inventions of the 21st century.