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Bitcoin exceeds 18 million issued coins, what does this mean for the future of digital currency?



Twitter author: @shadowargel
Within the framework of this milestone in the history of digital currency, we analyze five key data for the future of Bitcoin for the next few years.

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Bitcoin, The largest market capitalization cryptocurrency will now overcome the barrier of 18 million mined coins.

At approximately 9:00 pm New York time, The net Bitcoin It will officially record 18 million coins, leaving a total of 3 million remaining committed, thereby reaching the target of the originally scheduled 21 million.

Therefore, within the framework of this milestone for the history of Bitcoin, In the following, we will review five important statistical data to consider in the future of digital currency in the coming years.

1.- Bitcoin as a reservation

Since its inception, Bitcoin It was proposed as a system for transferring value between people, which did not depend on trusted third parties who performed the operation compromising their privacy. Another revolutionary aspect was that it had almost instant economic operations, a cost that would not change regardless of whether it is a local or international transaction.

During the early years, Bitcoin It was quite popular as a medium for products and services among connoisseurs. However, as the number of people and companies using digital currency increased, the network began to experience certain bottlenecks that triggered the cost of commissions. Thus, it pushed cryptocurrency away from the end for which it was created and turned it into a mechanism for storing value, especially in economies heavily affected by political and financial problems (such as Argentina and Venezuela).

Therefore, today cryptocurrency is considered as «the new digital gold“Because it is unprofitable as a way of making payments, increasing its value makes it an option to store value. This belief is reinforced by some economists who know the subject and say that because of its deflationary properties, Bitcoin It may have a high price in the coming years.

2.- 21 million coins

The creator of the digital currency, Satoshi Nakamoto, has programmed Bitcoin so that there were only 21 million coins and thus prevent their inorganic issuance.

To do this, the network is set up to reward the work of those who provide the processing power of their equipment to process transactions, creating new currencies that will be earned by the device that can group transactions into an information block, for which you must perform a mathematical calculation of great complexity.

This is how the network is configured so that the last fragment of Bitcoin was extracted in the year 2140, and it is estimated that in 2032 99% of BTC They will exist.

3.- Half from the Web Bitcoin

Of course, to ensure that digital currency increases its value, in addition to programming a finite number of tokens that will exist, Nakamoto also added a clause in the code that cuts miners' rewards in half after registering a number of blocks processed in The net.

This process is known as Outdoors, and occurs whenever the network logs 210,000 processed (every four years). Currently, the reward for processing a block every 10 minutes is 12.5 BTC, thus creating 1,800 bitcoins each day.

The next half would be on May 14, 2020, and thereafter the block reward will be 6.25. BTC emitting about 900 daily bitcoins

4.- Power of Hash and electricity consumption

Over the years, the number of people interested in digital currency mining has grown exponentially, resulting in an exponential increase in the rate of Hash present in the network.

In the moment that Bitcoin recorded the highest value in its history (US $ 20,000 in December 2017), the levels of Hash of the network were at 14,630,524 TH / s. Today that number has increased by almost 650% as the processing power of the entire network is equivalent to about 96,995,362 TH / s. This reflects a larger number of active devices that support the operation of the Blockchain of digital currency.

As for electricity consumption, analysts estimate that the grid today Bitcoin It consumes a total of 64.15 TWh, a number that exceeds the amount of energy required by a country like Switzerland per year. These data are often criticized by governments and environmental organizations, concerned about the possible repercussions this could have on the future.

However, in contrast to these concerns, studies ensure that at least 70% of the energy used by the grid Bitcoin It comes from renewable sources.

Meanwhile, many programmers are working on other types of solutions to provide the overall digital currency ecosystem with greater sustainability, with the consensus algorithm being the prime example. Proof of participation, which significantly minimizes the electricity consumption of some networks Blockchain

5.- Volume of Operations

Last but not least, the market volume that currently capitalizes on the ecosystem Bitcoin, which alone records about $ 143,384 million.

As an interesting fact, the digital currency is priced today at $ 7,960, recording a 24-hour turnover of more than $ 15,467 million.

Several analysts project that these measures could increase significantly over the years because, despite the price volatility of the digital currency, it is a very young market whose technology has proven to be one of the safest so far.

Angel Di Matteo Article / Daily Bitcoin

Picture of Unsplash



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