Definition
The block reward is the primary incentive for miners to secure the Bitcoin network. It consists of the block subsidy (newly created Bitcoin) plus all transaction fees from the transactions included in that block.
The block subsidy started at 50 BTC when Bitcoin launched in 2009 and halves approximately every four years (every 210,000 blocks). The current subsidy is 3.125 BTC after the April 2024 halving. Transaction fees make up an increasingly important portion of miner revenue as the subsidy decreases over time.
In Simple Terms
The Bitcoin earned by mining a block. Currently 3.125 BTC, it halves roughly every four years.
Block Reward is a term used in Bitcoin mining related to mining basics.
Also known as: Mining reward, Block subsidy.
The block reward is the primary incentive for miners to secure the Bitcoin network. It consists of the block subsidy (newly created Bitcoin) plus all transaction fees from the transactions included in that block.
The block subsidy started at 50 BTC when Bitcoin launched in 2009 and halves approximately every four years (every 210,000 blocks). The current subsidy is 3.125 BTC after the April 2024 halving. Transaction fees make up an increasingly important portion of miner revenue as the subsidy decreases over time.
Understanding block reward is important for Bitcoin miners because it directly impacts mining operations, hardware selection, or profitability calculations. Whether you are a home miner running a Bitaxe or operating a larger ASIC setup, this concept helps inform better mining decisions.
Related terms: Halving, Block, Coinbase Transaction, Block Subsidy, Transaction Fees.