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.
This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/24668/
It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.
Recommended articles
-
Table of Contents
On April 27th, it was reported that the NFT projects DeGods and y00ts have both been launched with unmanaged pledges. Users only need to cancel the pledge and re pledge your NFT to
-
“Boring Ape” Shows Impressive Transactions in Cryptoslam
It is reported that according to the latest data of cryptoslam, the total amount of BAYC transactions of \”boring ape\” has exceeded 2.7 billion US dollars, reac…
-
What does Ethereum mean by Byzantium (Ethereum cooperates with abey)
What does Ethereum mean by Byzantium Ethereum? Literally, it introduces a new rule into the consensus algorithm of blockchain. The “Byzantine Protocol” defined in the Bitcoin white paper is a new scheme for block expansion proposed by Ethereum founder V Shen, that is, mining using the PoW mechanism In short, it is to issue tokens through PoS, and in this way token holders can obtain corresponding rights and interests (tokens). For example, we are now doing Lebit cash on the Litecoin network, the so-called Ethcoin network. (Ethereum Chinese name: Ethereum) Ethereum cooperates with abeyAccording to bitcoin exchangeguide, Cryptocurrency exchange eToro and blockchain data analysis platform abey have reached cooperation with Ethereum. Through this integration, smart contracts on Ethereum network can use abey’s decentralized identity (DID) tool to store, share or send sensitive information on the blockchain. This solution allows users to transfer their credentials from Ethereum to other chains, thereby creating a secure and easily accessible user interface for their…
-
The Digital Euro: Stepping Into the Future of Payments
On April 26th, Fabio Panetta, a member of the Executive Committee of the European Central Bank (ECB), announced that the primary goal of the digital euro project is to establish it
-
Possible Stricter Regulations for Medium-Sized Banks
According to reports, sources have revealed that after the Silicon Valley Bank (SVB) incident, the Federal Reserve is considering a series of stricter capital and liquidity requirements, as well as measures to strengthen annual stress testing. These regulations may focus on medium-sized banks with assets between $100 billion and $250 billion, which currently evade some of the most stringent requirements. Source: The Federal Reserve is strengthening its annual stress testing measures Analysis based on this information:According to recent reports, the Federal Reserve is considering implementing a series of stricter regulations for medium-sized banks with assets between $100 billion and $250 billion. This has come after the Silicon Valley Bank (SVB) cyber-attack in 2020, which exposed vulnerabilities in the banking sector’s security. The proposed regulations may focus on capital and liquidity requirements, as well as measures to strengthen annual stress testing. Capital requirements ensure that banks have enough funds to cover potential losses, while liquidity requirements ensure they have enough cash…
-
Dune Data Analysis Reveals Exponential Growth of Polygon NFT Market
According to reports, Dune data analysis shows that in the past 30 days, the trading volume of the Polygon NFT market has exceeded $1 million on two days; Y00ts has the highest tra
-
Polygons Main Network: No Separate Token Required
It is reported that Polygon has updated its official document on matters related to the main network of Polygon zkEVM. The article points out that the main network of Polygon zkEVM
-
NULS Announces Launch of ENULS, an EVM-Compatible Network
On February 15, NULS announced that the EVM-compatible network ENULS launched by its community was launched today. ENULS uses NULS as the main chain asset, and…
-
AI and Smart Contract Security
On March 15th, Yu Xianfa, the founder of Slow Fog, tweeted, “The smart contract codes of hyenas are generally simple, and I believe that GPT-4 can probably provide correct security advice. However, complex smart contract codes, especially those with human sophistry, and vulnerabilities that require other scenarios (or broader contexts), GPT-4 cannot handle them, but it can be used as an audit aid (if used well).” 。 In addition, AI can deceive people. “It seems that security audit companies can not only use GPT well in the future, but also audit whether GPT is’ doing evil ‘.” Founder of Slow Fog: GPT-4 cannot handle complex smart contract codes, but can be used as an audit aid Analysis based on this information:On March 15th, Yu Xianfa, the founder of Slow Fog, tweeted about the relationship between smart contracts and artificial intelligence (AI). Xianfa suggested that while AI, specifically GPT-4, may be able to provide correct security advice for simple smart contract…
-
Ethereum Kaustinen Test Network Goes Live
On March 10, it was reported that the Ethereum Kaustinen test network has been put online again. This is the PoS verkle test network, which replaces the Condri…
-
Why Crush Bitcoin (Why Crush Bitcoin),
Why Crush Bitcoin Why Crush Bitcoin?From the investigation results of the US Dep
-
Ethereum’s PoW and PoS: A Comparison of Electricity Consumption
According to reports, according to data from the Cambridge University Energy Center, the total electricity consumed by Ethereum during the PoW phase is approximately 58.26 TWh, whi
-
China’s Credit Impulse Index and the Potential Impact on Bitcoin
According to reports, according to the data source MacroMicro, China\’s credit impulse index (which measures the change in new credit or bank loans to GDP) has rebounded from 24% to
-
Maybelline Launches First Digital Avatar to Bridge Real and Virtual Worlds
It is reported that Maybelline New York, the cosmetics giant, announced the launch of the first digital Avatar \”May\”, which will be used in the promotional act…
-
France: The Rising Hub of the Encryption Industry
On April 13th, Bloomberg News published an article today titled \”France as a \’country of entrepreneurship\’ has become a safe haven for the encryption industry.\” The article stated
-
The Latest Update on Agility Token (AGI): Prices Fall Below $0.4
According to reports, market data shows that the LSD agreement Agility Token AGI has fallen below $0.4, and is currently quoted at $0.3928, with a 24-hour drop of over 45%. The mar