Absolute Maximum Ratings of Bitcoin

Absolute Maximum Ratings of Bitcoin

An in-depth look at the fundamental parameters defining Bitcoin's network and operational metrics.

Maximum Block Size

The maximum block size in the Bitcoin blockchain is limited to 1 megabyte (MB). However, with the implementation of the Segregated Witness (SegWit) protocol in 2017, the effective limit increased by separating signatures from transaction data, allowing for blocks of approximately up to 4 MB.

Average Block Time

On average, a new block is produced every 10 minutes in the Bitcoin network. This interval can fluctuate as the mining process depends on the network's difficulty and the total computational power of the miners.

Total Bitcoin Supply

The total number of Bitcoins that can be issued is capped at 21 million. This limit is hardcoded into the algorithm, with the expectation that the last Bitcoins will be mined around the year 2140.

Mining Difficulty

Bitcoin's mining difficulty adjusts automatically every 2016 blocks (approximately every two weeks) to maintain an average interval of 10 minutes between blocks. This means the difficulty changes in response to increases or decreases in the total mining power of the network.

Transaction Confirmation Time

The time it takes to confirm a transaction on the Bitcoin blockchain varies. It depends on the fee the sender is willing to pay and the current network congestion. On average, confirmation can take from 10 minutes to several hours.

Market Capitalization

The market capitalization of Bitcoin fluctuates based on the current price per coin and the total number of coins in circulation.

Block Mining Reward

The reward for mining a block is halved approximately every four years in an event known as "halving." Starting at 50 bitcoins per block in 2009, the current reward stands at 6.25 bitcoins per block after the last halving in May 2020.