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Why only 21 million bitcoin mined?

In Finance
April 14, 2022
Million Bitcoin

The founder of bitcoin created bitcoin by taking care of its supply because he wanted to make this digital coin principal. Now you can see the cost/value of this digital currency. Bitcoin is one cryptocurrency with a high cost in value because it is limited in supply. However, other cryptocurrencies are high in weight; hence, the price of those currencies is meager. Some cryptocurrencies are less than a dollar because the pool is in bulk. This article will find the actual cause of the limited supply of bitcoin. Check the latest value of this digital coin on https://bitlq.net/.

The founder wants to make the coin value.

In ancient times, there were many difficulties, and it was very tough to deal with currencies. Satoshi wants money that will remove all the restrictions of third parties and would be a deflation currency. Hence bitcoin was created by this person to make the currency value. At the start of 2013, the price of bitcoin was eleven dollars, which was significantly less. Still, now the current cost of bitcoin is 38,717 dollars at the time of this article writing. After a few years of launching this currency, the price started rising because supply was significantly less, and people started buying bitcoin. Hence the value of bitcoin started growing that Satoshi wanted. After five years of launching, bitcoin became famous worldwide, and people were curious about this new technology. Unfortunately, many people started taking advantage of this currency by performing illegal activities. Hence in some countries, the government is not allowed to use bitcoin for any purpose.

Complex algorithms

Since no single person controls or manages this currency, bitcoin’s process is very different. Many nodes or computers are working behind this technology. Bitcoin production depends upon complex algorithms. If you want to create a new bitcoin on the network, you have to solve these complex algorithms that are very tough to crack. The founder has created this currency and made the source code by ensuring that there would only be twenty-one million bitcoins and no one could produce more. Many miners are participating in blockchain to solve these algorithms. Still, some could be successful because it is not an easy task. Miners must have good experience in programming languages and solving mathematics equations. There is a need for more computational power, and without computation power, a bitcoin is impossible to produce.

There is now ninety percent of twenty-one million bitcoins available on the blockchain network, which means only eighteen million are available. Furthermore, it will take over a hundred years to produce the remaining three million bitcoins because the process of making one bitcoin is very seldom.

Understand mining

Mining solves the mathematical equations in a programming language by using the computational power to produce new bitcoin on the blockchain network. The producers of bitcoin who solve the equations in the programming language are called miners. Bitcoin miners have two advanced skills that help them be professional miners – Mathematics and programming skills. Bitcoin is working on different nodes or computers around the world. It uses computation power to produce bitcoin divided among all the computers. Some miners started their mining company by installing high computational energy plants to have bitcoin easily and earn more money. Some beginners come into the mining process to make money, starting with their ordinary computer. Still, they do not realize the mining until their computer gets destroyed because mining will heat your laptop. So there would need to be a particular computer for the bitcoin mining process.

High reward to miners

There are two different miners on the blockchain network. The first miners create bitcoin using their skills and computational power, and the second category is the transactional solving category. In the second category, miners get rewarded for solving the bitcoin transactions on the blockchain. They have to solve a bunch of transactions. When a block of transactions victoriously validates, the miners get 6.25 BTC as a reward. Many miners are coming in the second category because there is less computational power and less knowledge to solve transactions. If fewer miners produce bitcoin, then reaching 21 million bitcoins will be prolonged.