Virtual currency Bitcoin (BTC) is currently experiencing a decline in its exchange rate, however analysts and financial strategists predict further significant growth in the future. These experts justify this increase by the unequivocal fact that 90% of this currency has already been mined and therefore only 10% of the total volume is yet to be mined. According to blockchain.com, on Monday, 13 December 2021, more than 21 million BTCs have already been mined, with the remaining 10% not expected to be mined until February 2140.
Based on this fact, both analysts and financial strategists believe that according to the standard supply and demand rule, the price will increase significantly due to the reduced number of BTCs on the market. According to these experts BTC will trade against the US dollar (USD) at the exchange rate exceeding US$ 100,000 per BTC. On 14 December 2021, at 7:50 am CET, it traded at US$ 46,543.70 USD per BTC, with a daily decline of -0.18%. Bitcoin works on the so-called proof-of-work model, which means that miners have to compete to solve complex mathematical problems to verify these transactions, and then become full owners, but in a completely anonymous fashion. However, this process is not easy at all and, moreover, this process required powerful computer technology using a considerable energy resource. The current Bitcoin Mining process, which has led to the current 90% BTC usage milestone, has been relatively short-lived – taking 12 years, even though it was meant to last until February 2140.
Bitcoin is an internet open-source P2P payment network and also the cryptocurrency used in this network. Bitcoin’s main uniqueness is its full decentralization; it is designed so that no one, including the author or other individuals, groups or governments, can influence the currency, falsify, confiscate accounts, control cash flows or cause inflation. There is no central point in the network, and no one can make decisions. The final amount of bitcoins is known in advance and the release of bitcoins into circulation is defined in the network source code. There are minimal or no cost payments. The network has been operating since 2009 and it was created by a group of people known as Satoshi Nakamoto. According to cryptocurrency analysts Bitcoin is the only medium of exchange that can offset central banks printing money.
A special database that stores an ever-increasing number of data – called a blockchain – serves as bitcoin’s ledger. The online database is protected both against unauthorized outside interference and from the users themselves. The final amount of bitcoins is known in advance and their release into circulation is defined in its source code. A unique feature of bitcoin is its complete decentralization. It is designed so that no one, not even its author or other individuals, groups or governments, can influence, counterfeit, confiscate accounts, control cash flows or cause inflation. Bitcoin is completely independent of traditional currencies, its value depends on the confidence that it will be possible to pay with it in the future as it does today. The value of bitcoin is based purely on supply and demand on the market, in short-term sections the exchange rate is characterized by sharp price fluctuations.