Bitcoin price

Have you ever wondered what influences the price of bitcoin and why is it so valuable? Firstly, a fixed number of bitcoins was created so that there won’t be any manipulation on the amount of bitcoin available. These bitcoins were not released at once into the market, instead a fixed about of bitcoin would be released into the market at regular intervals until all bitcoins were in circulation. Bitcoin was created in 2009 by Satoshi Nakamoto who created 21 million bitcoins only for the entire world to use. Imagine the entire population of the world competing for these 21 million bitcoins. So from the onset the price of bitcoin was designed to increase based on the principle of supply and demand – 21 million (low supply) vs more than 7 billion people (high demand). The way the bitcoin was released into the market is that a block of bitcoins is released every 10 minutes. From 2009 to 2013 there were 50 bitcoins in a block, then this amount would be reduced by half every 4 years. So from 2013 the bitcoins in a block were reduced to 25 and in 2017 they were reduced to 12.5 bitcoins per block. They will continue to be halved every four years until all bitcoins will be released into the market and in circulation by the year 2140. The question you are probably asking yourself is “how are the new bitcoins released into the market?” and “how can I lay my hands on these bitcoins?”

The new bitcoins are given to the miners as a reward for verifying the transactions. These miners are involved in the process of mining where they verify and assemble bitcoin transactions into blocks and get paid with newly released bitcoins. In addition to the new bitcoins released, the miners are also paid transactions fees. You may argue that the fee for one transaction is very little (few cents), but remember this is a currency of the world. So the bitcoins transactions are for the whole world. In the end, instead of a miner being paid 12.5 bitcoins they are paid more than 17 bitcoins. Now you see how you can make money from bitcoin mining. There are some considerations to make before deciding to go and earn bitcoins from mining. Bitcoin mining is a very expensive exercise so it requires huge capital to get started and maintain it. Visit our webpage (https://www.dubeminer.com) to obtain more information on bitcoin and mining and subscribe to our free newsletter so that we keep you updated with all the information you need.