Certified Bitcoin Professional Practice Exam

How many Bitcoins were mined in each block when Bitcoin was first launched?

1. 25

2. 50

3. 75

4. 100

The correct answer is: 50

When Bitcoin was first launched in January 2009, the reward for mining each block was set at 50 Bitcoins. This was the initial reward established by Satoshi Nakamoto, the pseudonymous creator of Bitcoin. The block reward is an incentive for miners to validate transactions and add them to the blockchain, and 50 Bitcoins was intended to promote the early adoption and security of the network. This reward structure not only encouraged mining but also embedded a deflationary aspect into Bitcoin's economic model. It is important to note that the block reward is designed to halve approximately every four years, or every 210,000 blocks. This halving process greatly impacts the rate at which new Bitcoins are created, making the currency increasingly scarce over time. Understanding this initial block reward is essential for grasping the mechanics of Bitcoin's supply and its gradual reduction, which contributes to the overall value and scarcity attributed to it.