In 2020, the number of bitcoins mined was approximately 657,000. This is a significant decrease from the previous year when over 1 million bitcoins were mined. The decrease in the number of bitcoins mined is due to the halving that occurred in May 2020.
The halving is an event that happens in the Bitcoin network every four years. During this event, the number of bitcoins that are produced as a reward for mining a block is cut in half. This means that the number of bitcoins that miners can earn decreases, which in turn decreases the overall supply of bitcoins.
The halving is designed to control the supply of bitcoins, which is an important aspect of the cryptocurrency’s value. The supply of bitcoins is limited to 21 million, and once this limit is reached, no more bitcoins will be produced. This scarcity is part of what gives bitcoin its value.
In addition to the halving, the difficulty of mining bitcoins also increased in 2020. This means that it became harder for miners to solve the mathematical puzzles required to earn bitcoins. As a result, the number of bitcoins mined decreased.
Despite the decrease in the number of bitcoins mined, the value of bitcoin continued to rise throughout 2020. This is due to a combination of factors, including increased adoption of bitcoin by institutional investors and the impact of the COVID-19 pandemic on the global economy.
Institutional investors, such as hedge funds and corporations, began to invest in bitcoin in 2020, which helped to drive up the price of the cryptocurrency. These investors saw bitcoin as a hedge against inflation and as a way to diversify their portfolios.
The COVID-19 pandemic also had a significant impact on the global economy, which led many people to turn to bitcoin as a safe haven asset. This increased demand for bitcoin helped to drive up the price of the cryptocurrency.
In conclusion, the number of bitcoins mined in 2020 was approximately 657,000. This decrease in the number of bitcoins mined was due to the halving that occurred in May 2020 and the increased difficulty of mining bitcoins. Despite the decrease in the number of bitcoins mined, the value of bitcoin continued to rise throughout the year due to increased adoption by institutional investors and the impact of the COVID-19 pandemic on the global economy.