Acquiring Bitcoin: A Brief Background To Bitcoin Mining

Despite the emergence of many other digital currencies, Bitcoin continues to reign supreme. It is arguably one of the most accessible options for those new to cryptocurrency. Bitcoins can be traded, bought and sold, but to find them, they, like gold, need to be mined. So before you can think about investing in bitcoin, you need to understand more about the acquisition process lets explore.

The Process

Bitcoins can be found hidden inside blocks of data. A miner, using an algorithm provided by the creators of bitcoin, has to solve equations in order to extricate the bitcoins from the data. The digital process has to be undertaken with software and equipment designed for that specific purpose. There is a finite supply of Bitcoins. There are only twenty-one million of them out there. Around nineteen or so have already been mined, meaning, obviously, there are only around two million more left to mine.

What Happens When They Run Out?

As mentioned above, bitcoins have a finite supply, and they are beginning to near their end. In all honesty, twenty-one million is an arbitrary number, and no one really knows why it was chosen. It could be to protect the coin against inflation and provide it with a more stable value. Once they are all mined, thats it. It is unlikely that bitcoin will waver from this limit, and no such plans to increase the amount have been announced.

As all of the bitcoins are mined, obviously, the supply becomes scarcer, and the coins themselves get rarer. This could drive the price up, increasing the earning potential of investors. This is why more and more cryptocurrency investors are scrambling to invest before they become harder to find and the price gradually begins to increase.

Entering the Market

The cryptocurrency market is incredibly volatile, and this volatility is likely to increase as the number of remaining bitcoins dwindles. This is why most investors are attempting to enter the market now. Once you have entered the market, either by mining the coins yourself or investing in them, there are two routes for you to consider. Firstly, you could choose to sit on them and wait for the maximum price as they become rarer. Or, if you do not have the luxury of time, you could choose to seize the advantage offered by the smaller market fluctuations. If you arent sure how to make the most of your investment, Paxful has a number of resources that can help you to find out how to make money with Bitcoin.

When Will All the Bitcoins be Mined By?

While it might seem like bitcoins are beginning to run out, with most of them having already been mined, the truth is that the rate has slowed. Only ten percent of all bitcoins are left to mine, but most sources estimate that this will take years. The general consensus is that the last bitcoin will be mined by the year 2140.

To Conclude

Since its initial release, bitcoin has remained one of the most popular and accessible forms of cryptocurrency. It is ideal for novices and those who do not have a tech background. That being said, it is still important that you do your research to learn more about the cryptocurrency, the acquisition process and how to make the most out of your investment strategies. By all accounts, there is still a while before all of the bitcoins are mined, which means there are still plenty of chances to get involved.