Bitcoin Helps Us To Understand Cryptocurrency
Keep the Beat going on with Bitcon!
It has been 10 years from the advent of Bitcoin in 2009. Bitcoin became one of the major coins among thousands of cryptocurrency. Therefore, Bitcoin’s market cap and its mining pool size are incomparable to others’. As a representative of POW coins and overall cryptocurrency market, Bitcoin gives an immense efficacy on various aspects of crypto economy.
General respects and current trend of Bitcoin
Bitcoin takes more than 50% of cryptocurrency market cap (3/21 BTC Dominance: 50.8%). Although Bitcoin’s usage has been expanded over time, Bitcoin shows a huge fluctuation in price so it cannot carry out a role as a payment method, according to its name, coin. Its value still remains about $4,000 since its sudden downtrend of its price in November 2018. As Bitcoin’s market value trend changed to downturn, overall cryptocurrency market confronted a massive recession. Recently, Bitcoin shows onwards and upwards but it is not a significant movement compared to the past.
How to mine Bitcoin?
In current cryptocurrency industry, there are a number of consensuses such as POW, POS, DPOS, POA, etc. Among them, Bitcoin applies POW (Proof of Work). POW simply means that giving an authorization of record, validation and sharing the transactions to user who successfully find the hash value, and that user receives coins as a reward. Its block is generated in every 10 minutes with maximum 1MB size. This block contains transaction data in text forms and encrypts as a hash function (SHA-256). Its difficulty shows almost infinite variety due to Bits and Nonce. ‘Bits’ is a random number which represents the mining difficulty. ‘Bits’ is randomly changed per block and its adjustment of difficulty. ‘Nonce’ is the only variation that mining equipment can change. Mining equipment can change the nonce value in order to get a solution for certain hash function, but the possibility of getting the same hash value of block is nearly 0%. This is because Bitcoin mining requires the substantial amount of energy due to its complex arithmetic operation.
Bitcoin fixed the number of total market supply to be 21 million BTC. It has a halving stage in every 4 years so as to diminish the reward in order to reach the fixed number of coin until 2140. The third having stage is just one-year left so we need to keep an eye on the trend from now.
Understanding Bitcoin is not a mandatory but allowing us to make more qualitative outcomes in mining. We hope MineBee supporters to successfully develop various mining skills and knowledge through our series of articles. Stay Tuned!
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