There are twenty-one millions bitcoin on the blockchain network, which is minimal compared to the supply of other cryptocurrencies. But there are not precisely twenty-one million bitcoins on the platform, but there are only eighteen million bitcoins on the platform because the founder of bitcoin has kept the bitcoin supply limited so that the value of bitcoin would remain high. So there is now eighteen million bitcoin on the platform, and miners will mine three million bitcoin. Click this image below to start your bitcoin journey.
How does the mining process work?
Since no government or third party is working behind the bitcoin network, miners work behind bitcoin. Miners are the persons who solve the bitcoin transactions with their programming and mathematical skills. Every miner has a computer that they use to mine the bitcoins, and they must have two skills to be pro miners: mathematical equation solving skills and programming skills. If you have these two skills, then you can become a miner.
To mine bitcoin, you have to solve the programming language’s complex mathematical equations or algorithms. After solving several equations or transactions, you will get bitcoins as a reward. Many bitcoin miners are working, and solving bitcoin transactions is easy for a typical miner, but producing bitcoin is very hard. There is a need for high computational power as well as high skills. The Bitcoin growing process includes a complex algorithm and will consume your high electricity. That is why bitcoin mining is perpetuated. And the value of bitcoin is increasing day by day by incrementing the desire to buy bitcoins.
Effect of supply in bitcoin:
Demand and supply are essential in every field to balance product and service. If one part is low or high, it will directly affect the product or service cost. As we all know, the economics rule, “if the supply is less and demand is high, then the value will rise, and if the supply is high and demand is low, then the value will fall.” As we read above, there are more than eighteen thousand cryptocurrencies with billions of supply in the market, but bitcoin is the only currency with 21,000,000 supplies. This gold coin has multiple benefits that mean you can do investing, trading, buying, selling, sending, receiving, withdrawing money from ATMs, mining, online shopping, consulting, earning money with a single currency. And with a bunch of features, the demand is increasing, and automatically the price is also growing. So there is a significant role of supply in bitcoin or other cryptocurrencies.
Impact of Bitcoin on bitcoin miners:
Many bitcoin miners work behind the blockchain network, and competition increases daily. When writing this article, every miner who solves the equations or blocks of transactions gets 6.25 BTC worth 244605.63 dollars. In the previous period, the reward for solving one block was 25 bitcoins, but the reward for solving blocks gets halved every four years. The current bonus is 6.25 bitcoins, and after four years, it would be 3.125 bitcoins. As the reward decreases, miners only solve transactions with high fees, which increases the transaction fees. The price decreases when miners get less compensation for solving equations when the miner would mine all the bitcoins on the network.
Impact on the Bitcoin blockchain
A bitcoin blockchain is a place where all the bitcoin transactions take place. The second name of the bitcoin blockchain is the bitcoin ledger because all the records of bitcoin sending and receiving get automatically recorded on this platform. Everyone can see the transaction of every bitcoin user by searching on this platform. If all the bitcoins get mined, it would highly impact the blockchain network because miners will solve only the transactions with high fees. There would be very few transactions occurring in the future because of fewer transaction fees. Miners will speed up the transaction and pay high prices, slow down the process, and pay more periodic transaction fees.
Only ninety per cent of bitcoins out of twenty-one million bitcoins kept making the bitcoin valuable by the founder of bitcoin. Supply plays an essential role in increasing and decreasing the value of bitcoin. When all the bitcoin gets mined, it will impact the reward system of miners and the blockchain network.