Bitcoin is the new backbone of digital currency. Some are relying on it and taking it to the next level by implementing it in their day-to-day use. Especially the government and legal authorities play big role in acceptance. There are others who still doubt the whole concept and have totally taken a back seat on its usage. Bitcoins has definitely some challenges to face. Security is one of the biggest concerns.
Cyber crime has set a fear in the masses regarding their money volatility on the other hand people are worried about their returns on investment. Since it has been only few years since Bitcoin has entered the market, most of the people lack adequate knowledge. The idea is unique, innovative and has vast scope in the coming years but for now there are lots of ups and downs that Bitcoin is facing currently.
Bitcoins in circulation – How many Bitcoins have been created
Bitcoin founder Satoshi Nakamoto has already set a finite limit on mining. Capping is at 21 million. As per a report launched recently, 80% of the coins are already created and is in circulation. The mining process works on proof-of-work.
Every time a user finds a solution for a mathematical equation, new Bitcoin occurs as a reward. The level of difficulty increases with time making it more difficult. There is a lot of competition when it comes to mining new coins. As the difficulty level increase, the miner’s form a pool to share knowledge and resources thus making the process quick and easy. Though, in pooling the bitcoins is divided equally.
Therefore, the market has consumed 80% of Bitcoins by now. Slowly and gradually people are shifting from traditional currency to digital currency, as there is ease to use and has faster transaction rates. The processing fee is also minimal giving an edge to digital currency.