Bitcoins are our present and our future. It is already shaping our lives and for sure will determine the time ahead. All the cryptocurrency trends are important to know to predict the changes in the market, industry, and global economy. To understand it, let’s take a look at how it is made and what influence it has.
WHAT THE CRYPTOCURRENCY MINING IS?
Bitcoin mining is the process of creating Bitcoins.
It is the procedure by which new bitcoins are generated by solving mathematical computations. This involves validating transactions and adding them to the blockchain. It’s a public, decentralized ledger system designed to store data security, for all bitcoin transactions.
Bitcoin is a finite supply. In 2009, when Satoshi Nakamoto created this cryptocurrency, they limited the number of it. It means that after mining the full number of BTC no new bitcoins will be created.
Until the first quartal of 2023, over 19 million Bitcoins are already mined. Since the upper limit for Bitcoins to exist is 21 million, it means that less than 2 million are left to be excavated. It is expected to happen in the year 2140.
If you are asking why someone should mine BTCs since this is such complex and a hard job, the answer is in the reward. The reward for miners for finishing one block is 6.25 BTC today. Just for the record, on the day of writing this article, 1BTC is worth 172.656,88$.
This reward amount is halved every 4 years (on every 210.000 blocks mined). The next one will happen in 2024 and the recompense will be 3.125 Bitcoin per block.
WHAT WILL HAPPEN AFTER ALL BTC IS MINED?
It is important to understand that Bitcoin was a low-worthy currency in the beginning. For example, one pizza was standing at 5.000 BTCs. Over time the value is increasing.
After all BTC will be mined, it is expected to drive-up price. The currency may become more stable.
Many factors define the price of Bitcoin, such as prices of other cryptocurrencies, markets demand, the producing BTC costs, and the mining dynamic as well. The level of adoption of BTC also influences its price, as well as legal regulation (which might lead to wider adoption and increase security).
The big difference between traditional currencies and cryptocurrencies is that conventional money might be printed as much as it government needs, but crypto is fixed to a certain number and the amount of it can’t be changed.
IS IT A GOOD IDEA TO INVEST IN CRYPTOCURRENCIES?
Now is an appropriate time to invest in cryptocurrencies. It is important to understand its potential, future trends, and changes in the crypto market. The popularity of cryptocurrencies grows significantly and trust is finally earned. Just, like any investment, it is important to do research before investing in any of them, to choose the right one with its best benefits and lower risks.