Bitcoin is precious, and there is a limited supply of world’s biggest crypto currency. Cryptocurrency wallet and tracking website Blockchain.info shows on Saturday that total amount of Bitcoins in circulation crossed 16.8 million mark, that equals 80% of total bitcoins that could be mined (21 million).
According to the whitepaper issued by Satoshi Nakamoto, total bitcoin supply is limited at 21 million and 16.8 million have already been mined means 80% of Bitcoins are mined.
With less than 4.2 million tokens left to be mined, cryptocurrency is only 20 percent away from reaching its hardwired 21 million token limit.
There are currently just over 16.8 million tokens in circulation with market price of around $14000, and market cap of $240 billion.
Mining is getting tougher
Each bitcoin is mined from what is known as a block , a data set on the blockchain which releases a handful of tokens each time it is successful broken down.
But the computer algorithms behind the blocks are getting harder to crack. It is a feature of the system that encouraged early adoption and now fights off inflation.
The current block reward is 12.5 bitcoin, but approximately avery 210,000 blocks the reward is cut in half. This will happen sometime in 2020.
The original mining reward stood at 50 tokens before it was halved to 25 and then 12.5. The next reward will only account for 6.25 tokens per block, thus making mining unprofitable.
Price is expected to rise
The increasing difficulty is clear because all bitcoin were already mined by 2017, but between 2016 and 2017 only 7 per cent were released. Then from 2017 to 2018 only another 3 percent were mined, and next year this number is expected to be even lower.
Some experts have suggested that once the number of available tokens decreases, bitcoin’s price tag could go through the roof.
Jamie Redman, contributor to Bitcoin.com, said: “In most cases when an asset is limited and resources are harder to come by, the supply causes demand for the market.
“The supply of bitcoin shows a significant gap between how many there are and those who want to obtain some”
Price is expected to go higher by the time as mining rewards are shrinking and demand is getting higher.
Take a Crypto Pill
Crypto market is crashing, we all know that, panic sellers are taking over the market with massive sell-off. You can’t control that, just calm down and take a Crypto Pill to make things easy.
Crypto Pill is the term being used by industry leaders to make things calm down from recent fiasco, yesterday a leaked news from CFTC about Bitfinex and Tether made things even more difficult for crypto traders, short sellers went all into the market with massive short bets, and they won, Bitcoin price slipped below $10000 level to as low as $9500, but later on recovered to $10K , but selling pressure is still there.
First South Korea and now US
First it was South Korea, the country with massive trading volumes in crypto market, they announced to ban anonymous crypto trading and ban took place effective from 30th Jan 2018, then a sudden news came from US market when Bloomberg broke the news that US financial regulatory authority CFTC investigating Tether and Bitfinex, but later on it was confirmed that news was from December last year, which made market calm down a little bit after all that tension and hype about US crackdown on crypto currencies.
HODLers will take over market soon
Despite of all this fiasco, Hodlers are still holding their Crypto currencies, they are not giving up and they holding for their dear life, it is very much possible that they take over this market in near future, making another uptrend in coming months.
Venezuela is the cheapest country to mine Bitcoin
Cost of mining one Bitcoin in Venezuela is just $531
Most expensive country to mine Bitcoin is South Korea, where cost of mining one bitcoin is $26,170
After recent crackdown by Chinese Government on Bitcoin miners, most talked about topic in bitcoin community is that which country would Chinese Bitcoin miners chose to shift, as many research firms were working to find the best possible option for the miners, one of the best option is Venezuela, where cost of mining one bitcoin is the cheapest, just $531, as compared to China where cost of mining one bitcoin $3172.
Others with lower costs are Bangladesh, Belarus, Paraguay, Serbia and Trinidad & Tobago. The most expensive is South Korea at $26,170 per coin. The U.S. cost is $4,675.
Calculations for the amount of energy consumed were based on the average usage of three popular types of mining equipment: the AntMiner S7, the AntMiner S9 and the Avalon.
Bitcoin mining consumes a lot of energy and according to one estimate, Bitcoin mining currently consuming energy which is more than 159 countries, including countries like Ireland
Crypto trading volumes are dropping
Volumes in crypto market are dropping, indicating an alarming situation. Crypto market started this year on a good note but later on crashed to low levels, apart from Ethereum, all other major crypto currencies are down for 2018, but one of the most alarming situations in this matter is that trading volumes on different exchanges are dropping to lowest levels in recent months.
For example, on Bitfinex current trading volume of Bitcoin is at around 25000 which at one point of time was as high as 160000 , which means this volume is not even 20% of its peak volume. Similarly in the case of Ripple, current trading volume is 8 Million which at one point of time was 50 million, so there is an alarming situation in that regards because not only price is dropping but crypto trading volume is also dropping dramatically.
Lack of interest?
One of the key questions that analysts are asking these days is that, is it lack of interest from investors that volumes are so low? may be they have found new investment opportunity in the form of S&P 500 and Gold. Most of the analyst think that this low activity is due to the reason that market speculators are currently out of the market and in wait and watch situation to make an entry point.
Calm before the storm?
Such low volumes and price movement in a tight range suggest that this is the calm before the storm, many regulatory authorities around the world are trying to stop crypto trading by either putting complete ban or by introducing tight laws, so speculators and institutional investors are just waiting for a clear picture so that they can make their bet on it, but one thing is for sure that sooner or later market is due for heavy movement in either direction, so day traders need to watch out.
News4 months ago
Bitcoin on Mars?
Interviews4 months ago
Interview with Neil Stanley about the world of crypto currencies
News4 months ago
Interviews4 months ago
A wall street veteran’s take on Cryptocurrencies
News4 months ago
IOTA is the next Bitcoin
Research2 months ago
New World Order 2.0 : Thoughts about Blockchain Technology and Bitcoin
News4 months ago
Lily Allen once turned down 200000 Bitcoin offer
News3 months ago
Vitalik Buterin owns 500000 Ethereum