Topic: Explain this to me (Read 381 times)
thanks a lot guys . very Good answers . that's make sense now
the supply of bitcoin is limited and how it is generated (like printed money) is fixed and known. new coins are generated when a new block is found and in form of the block reward of that new block.
it is currently at 12.5BTC per block and on fixed intervals (every 210000 block) it will be halved also known as halving.
the max amount will be 21 million coins and no more coins will be issued after that.
currently about 16 million of them are mined.
read the details here: https://en.bitcoin.it/wiki/Controlled_supply
it is currently at 12.5BTC per block and on fixed intervals (every 210000 block) it will be halved also known as halving.
the max amount will be 21 million coins and no more coins will be issued after that.
currently about 16 million of them are mined.
read the details here: https://en.bitcoin.it/wiki/Controlled_supply
Bitcoin has a market cap of 21,000,000 so you can say that there are 21M of Bitcoin hence the supply is limited that's why it is characterized of volatility or fluctuations in price because unlike the fiat which you can make it stable by controlling the release of money circulating which is proportional to the demand. Bitcoin's price now lies with its demand. If the demand increases so as the price will also.
Like Gold, Bitcoins are mined.
Like Gold, Bitcoins are mined.
Quote
New bitcoins are generated by a competitive and decentralized process called "mining". This process involves that individuals are rewarded by the network for their services. Bitcoin miners are processing transactions and securing the network using specialized hardware and are collecting new bitcoins in exchange.
https://bitcoin.org/en/faq
I was thinking about this for few days now .
With Normal money Government control the amount of cash . for example Government can print this cash whenever they need to .
Who does this with Bitcoins ? let's say Bill Gates decide to buy 70 Billion Worth of bitcoins . The market doesn't have this amount right now so who will generate this amount ? is there is something like Central Bank for Bitcoins who will supply the market with more Coins whenever the market need this ?
I know this is Noop Question
With Normal money Government control the amount of cash . for example Government can print this cash whenever they need to .
Who does this with Bitcoins ? let's say Bill Gates decide to buy 70 Billion Worth of bitcoins . The market doesn't have this amount right now so who will generate this amount ? is there is something like Central Bank for Bitcoins who will supply the market with more Coins whenever the market need this ?
I know this is Noop Question
The real beauty of bitcoin is exactly that nobody is able to print as much bitcoin as they want as opposed to fiat currencies and central banks. Miners invest in expensive mining equipment to be able to generate bitcoin. They also have to pay for electricity etc. There is no way that a million coins can just pop out of nowhere.
To answer your question if someone devices to buy 70 billion worth of btc the price of each btc will absolutely skyrocket as the monetary base cannot expand quickly enough to keep up with the demand.
I was thinking about this for few days now .
With Normal money Government control the amount of cash . for example Government can print this cash whenever they need to .
Who does this with Bitcoins ? let's say Bill Gates decide to buy 70 Billion Worth of bitcoins . The market doesn't have this amount right now so who will generate this amount ? is there is something like Central Bank for Bitcoins who will supply the market with more Coins whenever the market need this ?
I know this is Noop Question
With Normal money Government control the amount of cash . for example Government can print this cash whenever they need to .
Who does this with Bitcoins ? let's say Bill Gates decide to buy 70 Billion Worth of bitcoins . The market doesn't have this amount right now so who will generate this amount ? is there is something like Central Bank for Bitcoins who will supply the market with more Coins whenever the market need this ?
I know this is Noop Question
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