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Bitcoin, its price and Network Details

Bitcoin is the biggest of cryptocurrencies, which was developed in 2009 by Satoshi Nakamoto ( This is a fictional name given to this unknown creator of virtual currency ). Blockchain technology is used to record these transactions, which helps determine the ownership of bitcoin.

What is Bitcoin?

Bitcoin is a new currency system that enables an entirely new payment mechanism which is fully digital currency. This decentralized P2P ( Peer to Peer ) payment has no central banking system or controlling authority.

Current Bitcoin Price

BTCUSD Chart by TradingView
 

How is Bitcoin price determined? 

The value of any currency is varied by the central bank’s interest rate, inflation, government monetary policy, economic conditions, etc but these factors don’t influence the price of a bitcoin; below are few factors that influence bitcoin’s price. 

  1. Supply and Demand is the main factor to determine the price of bitcoin. As Demand goes up, the price goes up, and as Demand goes down, the bitcoin price decreases. 
  2. Cost of energy required to mine bitcoin; as the complexity of bitcoin blocks increases, so do the energy required to mine it. 
  3. Rules and Regulations set by different countries and their banks on bitcoin and how to use them also will influence its value. 
  4. Other Cryptocurrencies that are traded in the market will also influence the price of bitcoin.

Bitcoin Network

Bitcoin Network has a peer-to-peer network for payment that works on a cryptographic protocol. Bitcoin’s cryptocurrency wallet is used by users to send and receive bitcoins. These transactions are carried out by blockchain technology and are known to only the sender and receiver. This secretive nature of the transaction is one of the reasons for bitcoins popularity. 

Bitcoin Market Capitalization

Bitcoin has one of the largest market capitalizations among all the cryptocurrencies. As of May 2021, Bitcoin has a market capitalization of around 700 billion dollars. In April 2021, Bitcoin had reached its total market capitalization to above 1 Trillion dollars. Bitcoin’s price is very volatile; that is the reason there is so much difference in its market capitalization in a short period.
 

Bitcoin Exchanges 

 

These exchanges are similar to traditional trading platforms where there are buyers and sellers of particular derivatives or stock, in this case, Bitcoin and some other cryptocurrencies. There are many popular cryptocurrency exchanges that trade bitcoin, popular ones being Binance, Coinbase, Kraken etc. There is an entire list of popular cryptocurrency exchanges on Coinmarketcap link 

 

Bitcoin Mining 

 
Bitcoin Mining is a procedure by which new bitcoins come into circulation. This mining is performed using high-end computers which have the capacity to solve complex mathematical problems. Bitcoin mining has become like the new gold rush everybody with a high-end computer wants to try his luck with bitcoin mining. Once the coin is mined, it will be stored in a digital bitcoin wallet from which can be exchanged or converted to any currency of choice. Energy consumed by these bitcoin miners is also very high as of 2021, which makes bitcoin mining not so profitable.
 
Below is a Bitcoin Mining calculator using which you can analyze the amount of computer power and energy required to mine bitcoin.
 

Bitcoin mining calculator

As of May 2021 around 18.5 million bitcoins are mined and there are only 21 million bitcoins that can be mined ever. So only around 2.3 million bitcion’s are left to be mined after which we cannot mine any bitcoins which will increase the bitcoin price as the supply will be stopped. 

 

  1. For Bitcoin exchange details https://coinmarketcap.com/
  2. For Bitcoin price chart details  https://in.tradingview.com/
  3. For Bitcoin mining calculator https://minerstat.com/