Bitcoin Has a Limit, Why Can it Still Be Mined? (What Problem Does the Limit of Bitcoin Exist to Avoid?)
Bitcoin has a limit, why can it still be mined? Editor\’s note: This article is f
Bitcoin has a limit, why can it still be mined? Editor’s note: This article is from William Chitchat (ID: William1913), written by William Chen, authorized by Odaily Planet Daily for reproduction.
In the field of Bitcoin mining, many people know that there is a limit, but why do we still mine? Because the more coins you mine, the more valuable they become. And now that more things have been mined, everyone feels that they are not expensive enough. So, today, let’s talk about this issue.
1. How is Bitcoin’s block reward set?
2. 2M = 1 billion US dollars; 3. 1M = 1 million/coin; 1M = 500,000 times Bitcoin can be mined in a 4-hour cycle.
There is actually a very important factor in all of this, which is that the threshold for Bitcoin mining is very high!
First of all, mining something requires a certain amount of computing power. If you want to get Bitcoin, you have to transfer it somewhere and then buy it back at a lower price than others.
Secondly, there must be restrictions on the computing power required to mine something; otherwise, there will be no return on investment, which is not worth it. For example, if you want to short Bitcoin, you have to sell it somewhere that you can afford to lose money in order to make a profit. But if you really believe in the price and actual value of Bitcoin, your capital costs will increase, which means the attractiveness to ordinary people decreases. It is too risky for beginners.
Finally, there are the costs of Bitcoin mining, which are generally composed of electricity expenses and labor expenses. Basically, a 10% handling fee is charged every month, and no electricity fee is required.
In addition, one other very important thing is that Bitcoin’s transaction speed is fast, which means it can only process a few transactions per second. This means that you do not need to spend so much effort on calculations and can control your own operational capabilities.
This is what’s called “mining.” Bitcoin mining not only consumes electricity but also uses other hardware devices to maintain network security. When people began to realize that mining had become a social movement, it naturally led to a phenomenon where a single computer could run the world’s largest virtual currency exchange. Through these platforms, virtual currencies could be bought and sold, thus reducing inflation. However, this has also caused many people to panic, believing that Bitcoin as digital gold is just the tip of the iceberg. After all, mainstream cryptocurrencies are now based on cryptographic algorithms to establish trust relationships, rather than applications of blockchain technology or distributed ledger technology.
In addition to the reasons mentioned above, we should also understand why more and more projects choose to use blockchain technology to build ecosystems and which aspects are most likely to develop in the future.
What Problems Does the Limit of Bitcoin Exist to Avoid
According to bitcoinist news, the limit of Bitcoin exists to avoid what problems. According to BitInfoCharts data, within the 24 hours before January 31, 2018, the highest price of BTC was about $42,000, and when the price fell below this number, it would face situations such as being hacked or lost. If the price of BTC exceeds the currently set target price of $20,000, it will be subjected to hacking attacks. In addition, Bitcoin has not yet experienced a halving of block rewards, so no one can predict whether there will be a new round of block packaging events in the future.
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