It seems like the world is looking for a new way to transact, and Bitcoin’s innovative technology has revolutionized it with a new kind of cryptographically made digital payment system. Presently more individuals and businesses adopting this digital currency in their everyday lifestyle.
The modern societies have accepted this new kind of currency, which is termed as the future of money, is getting loved by large number of individual users and business firms across the boundaries. And, getting adopted widely as an innovative way to transact freely.
But those who are new to current Bitcoin trend, might be thinking about how these bitcoins are created, and why do it has so much value? To let them understand this post tries to explain!
# How Bitcoins are Created?
New bitcoins are always generated by a competitive and decentralized process known as “mining”. This mining process involves may individuals, those are rewarded by the network for their services.
Bitcoin miners are continuously processing transactions and securing the entire network using specialized mining hardware, and are collecting new bitcoins in exchange.
The Bitcoin network protocol is designed in such an advanced way that new bitcoins are only created at a fixed rate and intervals. Which makes Bitcoin mining a huge competitive business.
When more and more miners join the network, it becomes increasingly difficult to make a profit, and miners must seek efficiency to cut-off their operational costs for mining.
There is No centralized authority or developer even has any power to control or manipulate the Bitcoin’s system to increase their profits or mislead the protocol.
The Bitcoin’s system is said to be so powerful that, every node in the world will instantly reject anything, which does not comply with the rules, expected for the system to follow.
Bitcoins are created at a decreasing and predictable rate.
The number of new BTCs created each year is automatically halved over the time until it issuance halts completely with a total number of 21 million bitcoins in existence.
At this point, the Bitcoin miners will probably be supported exclusively by numerous small transaction fees.
# Why do Bitcoins have Value?
Bitcoins have value because they are useful as a form of money. It has the characteristics of money like: durability, portability, scarcity, divisibility, fungibility, and recognizability.
Bitcoins valued based on the properties of mathematics rather than relying on physical properties like: gold and silver or trust in central authorities like different fiat currencies.
In short, It is backed by mathematics. With these attributes, all that is required for a form of money to hold value is trust and adoption.
In the case of Bitcoins, this can be measured by its huge growing base of individual users, business merchants, and worldwide startups.
As with all currency, bitcoin’s value comes only, and directly from people willing to accept them as payment system.
Present societies seem to like this new kind of digital currency, termed as the future of money! As, large number of users and businesses across the boundaries have adopted it as an innovative way to transact freely.
What do you think about this digital currency, is this a revolutionary way to transact across the borders, could it make any change in the future, and become the future of money?
Please let us know! What do you think about the way Bitcoin is getting created and gaining so much value worldwide? Via you comments below!