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Oct 30, 2019 at 09:35 // News

Recently the 18 millionth bitcoin was mined accounting for about 85.714% of the total available Bitcoins. The cryptocurrency is nearer to its pre-programmed mining cap of 21 million coins. Here we will review what these figures mean for Bitcoin miners and Bitcoin price in General.

Most Bitcoins already Mined

According to data from
CoinMarketCap, more than 85% of Bitcoin has already been mined. This translated to about 18,000,000 bitcoin of the total available 21,000,000 coins. This implies there is 3,000,000 Bitcoin left to be mined. The Bitcoin algorithm is coded to limit the supply of the cryptocurrency to check inflation.

The scarcity of Bitcoin implies that prices of the cryptocurrency can be maintained up or increase with demand. According to basic economics, when demand for a commodity is high it’s priced automatically increases. However, when the supply of the commodity is higher than it’s demand prices will crash. That’s a similar principle governing Bitcoin.

New Bitcoins are etched from the Bitcoin mining Cap of 21 million every time a combination of mining node verifies a block of transaction. The miners who successfully found the block is rewarded with some Bitcoin for their effort in solving the complex algorithm required to find a new block. This is how new Bitcoin comes into circulation.

Effects on Mining Difficulty Factor

According to the originally pre-programed
Bitcoin algorithm, every time 210,000 blocks are found, the mining reward is divided by two. This also is to ensure a stable supply of the cryptocurrency. Satoshi Nakamoto in a 2008 mailing list revealed that the best way to distribute bitcoin is by halving the mining rewards at some point constantly.

Whenever a block of bitcoin is found it becomes harder to find the next block while mining bitcoin. This means bitcoin miners will need to keep on upgrading their mining machines to cope up with the increasing Bitcoin mining difficulty factor. According to, the current mining difficulty factor is estimated at 13,565,562,725,123.

This factor is not constant as it keeps on varying depending on the amount of hashing (mining) power the bitcoin network has. Currently, bitcoin miners who find blocks are rewarded with 12.5 Bitcoin. After the next halving, this figure would be reduced to 6.25 Bitcoin for every successful new block added in the network.

How the Global Bitcoin Price could Response

As a rule of thumb, the bitcoin price is supposed to increase as a result of limited supply. However, economically thinking, other factors could limit the increase in price. One of such is regulation of the cryptocurrency that directly affects its demand. The other factor is security which in recent times hampered the demand of Bitcoin across many demographics.

However, some experts believe that 21 million total coins are
insufficient if bitcoin aspires to become a global monetary commodity. Economist believes that deflationary systems are not the best option to control a global monetary commodity. That means at some point the bitcoin community could vote to increase the bitcoin hard cap.

But in the short run, we expect bitcoin prices to significantly improve. Many industry experts predict that bitcoin prices could go up astronomically. According to Jason A. Williams, of Morgan Creek Digital fund, Bitcoin price could hit $55k after the next halving estimated for May 2020. By Coin Idol , 2019-10-30 09:35:00 ,

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NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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