There is no need for answering to the “what is bitcoin?”.
However, if you are one of those who has not suffered from this digital delirium yet, read this guide. (And join the black side!)
Bitcoin is supported by people because of non-paper nature, anonymity, non-taxing, non-controlled way to pay for the goods in the network, etc.
All these things are possible because Bitcoin is not printed as fiat currency, it is mined.
What is Bitcoin mining?
In simple terms, mining – is resolving complex algorithms by powerful computers. In more specific words – it is hashing.
How many bitcoins are mined every minute?
Bitcoin – is just a line of digital code which exists in the form of transaction in the public ledger – blockchain.
So, when computer solves an algorithm, the new deal is sent to the blockchain and stored there.
FYI, not everycrypto currency is minable like Bitcoin. Some of them are created with the whole supply released all at once, that is why their quantity is finite. Non-minable cryptocurrency is Ripple, IOTA, Qtum, Stratis, EOS, etc.
All things have end.
Bitcoin is not an exception and has the finite supply, only 21 million of coins can be ever mined.
Bitcoin’s scarcity creates massive demand for it. And right you are, when all 21 million are mined, we will never see new bitcoins (if there is no chance to change a Satoshi Nakamoto’s initial protocol).
April 19, 2018 – 16,9 million Bitcoins are currently in supply. It means that only 19% are left unmined.
Here come the questions:
When will the last bitcoin be mined?
What will happen when the last bitcoin is mined?
One does not simply know when the last bitcoin will be mined.
To understand it, make predictions and correctly grasp the transparent monetary policy of Bitcoin, you should be aware of the bitcoin halving events.
Bitcoin mining is encouraged by donating miners new Bitcoins for every mined block.
However, every four years, the amount of Bitcoins awarded for a mined block cuts in half.
In 2009 miners got 50 Bitcoins for every mined block, today they got 12.5 Bitcoins/block, and in 2020 the number will decrease to 6.25.
Such decreasing flow is established to cut the inflation.
Here you’ll ask: “So what is the point of mining if the award decreases?”.
I answer: white nights, back-breaking labor (I am joking), all efforts of miners spent on developing new Bitcoins, of course, are awarded, and awarded twice – with new Bitcoins and transaction fees. Transaction fees are applied right at the moment of transaction confirmation inside of the block.
You’ll ask: “Who pays transaction fees?”.
I answer: anyone who sends Bitcoins, wants to make it as fast as possible, and gets the approve. The funny thing is that Bitcoin reward goes down every four years, but the transaction fee raises, inspiring miners to carry on their work.
With the halving events the last Bitcoin will be mined in 2140.
Also one simply knows that 21 million Bitcoins will never circulate in their total amount, because nearly 25% of 16,9 million Bitcoins have been forever lost.
Keep calm and don’t lose your BTC, because bitcoin exchange rates are high now and with their finite supply and public demand the future cost for 1BTC will likely reach $50,000, or even $1,000,000. You never know.
Current bitcoin exchange rates
Here logically I will answer:
“How can I turn Bitcoin into cash?”
Notice: I do not force you to do it, I explain you the variants.
There are different ways of turning Bitcoin into cash like using online exchanges, your friends who have fiat money or consuming specially developed applications and solutions for cryptocurrency users.
For instance, one of the options is TRASTRA – personal blockchain banking created for Bitcoin and Ethereum users who want to turn their crypto into fiat for day-to-day usage.
For more information on how to cash out Bitcoin with TRASTRA visit FAQ.