How many bitcoins in the world are there?
Bitcoin is actively and steadily moving towards de facto recognition of the world currency of the future. Security, functionality and decentralization are some of the main features of digital money. In favor of the fact that bitcoin every month attracts more attention, says a sharp increase in its rate and the attention of investors around the world. Its blocking system offers reliable high-power protection and secure and anonymous transactions.
«Many experts already agree that Bitcoin is the best world reserve currency. In early 2017, the People’s Bank of China held a meeting with the leaders of the largest Chinese exchange, the BTCC, which also became a kind of addition to the authority of the digital currency».
Political events, the threat of inflation, isolationist tendencies on the part of the UK and the US and the risk of a possible trade war with China are just some of the factors that will test the BTC’s ability to take on the role of the safest currency in the world.
How do the bitcoins appear?
People who first encounter crypto-currencies have a lot of questions about interesting facts about bitcoin, its value, security and history of development.
Among the most frequent questions are the following:
- “What are bitcoins?”,
- “Where do the bitcoins come from?”,
- “How is everything going on?”,
- “How many bitcoins exist?”
While traditional money is issued and controlled by the Central Banks of the countries, the bitcoins are extracted by the members of the network (blockhouse), where transaction data is stored. They are called miners (miners). With the help of special equipment for the extraction of coins, they perform certain mathematical tasks. In particular, they chronologically order transactions, inserting them into network blocks that open in the process of solving mathematical problems. This does not allow users to spend the same coins twice. Simply put, the block chain solves the problem of “double expense” of funds.
If you omit complex technical details, then the block search can be compared to a certain type of network lottery. Each attempt to find a new block, which is basically a certain mathematical calculation, the miner must spend some amount of energy. Most attempts, as a rule, fail, and the participant of the network spends energy for nothing. Only once every ten minutes he can succeed by adding a new block to the chain.
This also means that at any time when he finds the right block, he must save more energy for all previous unsuccessful attempts to decode the blocks. This algorithm of “proof” lies at the heart of bitcoin’s success.
First, this approach does not allow the generation of coins from the air. All participants must spend real energy to earn them. Secondly, this prevents the falsification of the transaction history. If an attacker tries to change past transfers of funds, then he will have to redo all the work that was done before. This is almost impossible, because constantly working in the network, the miners protect it from such attempts.
In exchange for their activities in the network, as well as within the “lottery”, which serves as a stimulus for the cost of power, each new unit includes a special transaction. It is she who gives the miner a reward in the form of new bitcoyne. It was in this way that the first coins appeared in circulation.
At the dawn of the emergence of the virtual currency, each new block included a reward of 50 bit-coins. This number is divided in half every four years. In addition, the miners are given the opportunity to retain royalties for production, which is tied to transactions that are included in their blocks.
Bitcoin for ordinary mortals most often looks like something very attractive because of its current value and the desire to earn. At the same time, most people are afraid to invest in it big money, for fear of losing them.
Theoretically, anyone can take part in the generation of bitcoins. But it should be noted that at first it was easier to mine BTC than at the present time. The complexity of this process is steadily growing to match the growth of the network capacity, which is measured in hashes per second. Nevertheless, the mining of bitcoins every year becomes an increasingly specialized way of earning and investing.
Until 2013, for the extraction of coins, a good computer with a powerful video card or a mining farm was enough (designs from several video cards working as a single unit). At present, it is simply unrealistic to dispense with specialized equipment. And if you take into account the costs of electricity, it is better to think everything over before deciding to take such a step.
The most profitable solution may be the cloud mining of bitcoins, which does not require the purchase of equipment and payment of bills for electricity.
How many bitcoins and wallets exist today?
In the traditional financial sector, it is easy to find and count the number of account holders or bank cards. And in the field of cryptographic money, everything is different.
Users of crypto currency are anonymous. All their actions on the network, including receiving and sending transfers, which are registered in the unit, are not directly related to their real personalities.
To carry out transactions and register bitcoin-purse it is not required to specify a name, a surname and other personal data. All you need is to create a purse, create an address to receive and send funds, and save the corresponding secret key. It performs the function of a digital signature to verify ownership.
The number of open wallets is the best metric available for estimating the number of people using bitcoins. As of August 12, 2017, according to the Blockchain.info website, the number of registered purses exceeded 15.926 million. However, this figure is not accurate.
Do not forget that each user can have as many wallets as he likes. As a precaution, it is recommended to create different wallets for different purposes. While one person who owns a large number of bank accounts in some countries can raise suspicion, in the field of crypto-currency is the norm.
In addition, these statistics include abandoned wallets, as well as those to which access has been lost. Immediately after use, the address remains forever in the block chain, but no one, except its owner, can tell exactly whether it will ever be used again.
On August 15, 2017, the blockage comprised more than 128,000 blocks, while the capitalization of bitcoin exceeded $ 63.5 billion.
The maximum number of bitcoins is limited. Blocking provides for the possibility of mining only 21 million bitkoy. As soon as the miners unblock the last block, the generation of new coins will be suspended if the system does not undergo further changes. Banks control a fixed reserve of currency, like gold, without allowing arbitrary and free release of new bank notes. But what happens when the world’s supply of bitcoins reaches its limit?
«If we consider the production of digital money in decreasing order, then four years after the appearance of bitcoin, 10.5 million coins were mined. Then every four years their generation was cut by half. That is, over the next eight years, 5.25 + 2.625 million bitcoins were obtained. In December 2015, 15 millionth bitcoin was produced. By such calculations it can be established that the last coin will be created by the year 2140. How many bitocoins are in circulation today? On August 15, the number of coins exceeded 16.5 million BTC».
At first glance, the suspension of production of new coins will primarily affect the miners. Critics of virtual funds believe that the miners will be forced to leave the network, as they will no longer receive remuneration in the form of new coins for their work. In this case, they will only have to rely on commission fees to support their work. Some analysts argue that this will lead to a reduction in the number of participants, the process of centralizing the detainee and numerous negative consequences for the system.
In their statements, they argue that only commissions for transactions will not be enough for the profitability of the miners, but after all, commission fees may grow.
Who will win when production ends? While no one can say how bikoyn will develop in the future, in what spheres it will be able to penetrate and what will be its value. Theoretically, a limited supply of currency can lead to an increase in its exchange rate. There is also an unknown number of bitcoins that are stored on purses with lost access, sent by mistake to old, unused addresses.
How many bitcoins are on active wallets is unknown. But the greatest number of bitcoins belongs to Satoshi Nakamoto. Under this name there is a person or group of people who created the BTC.
Most will benefit those who at one time was not afraid and acquired bitcoins, when they cost a mere penny. They risked and did not lose, despite the skeptical attitude to the crypto-currencies at that time. Such a contribution of funds to an unknown technology has made them today millionaires. This led to the fact that the new currency gained momentum in development and can now claim the role of universal world reserve money.
Development of bitcoin in the future
Bitcoin may or may not become a historical digital currency. But in any case, he already became a harbinger of changes in the paradigm of our understanding of money. This is not a national currency. It is not associated with a particular mint, it is not regulated by governments or banks. Bitcoin is sold and bought in digital form without having any real sales points.
With the advent of other digital currencies, such as Facebook loans and wireless payment technologies (waveandpay), humanity is likely to be thinking about traditional money in the future less and less. The place of a wallet in our pocket will be a smartphone, which already takes on the role of a mobile cash register.
At the same time, no one claims that the dollar, euro or pound will disappear. It is not at all about this. Simply, they will become more virtual and interchangeable, acquiring the digital form, which bitcoins already possess today. Of course, all this is not so simple. All this long process will inevitably be preceded by an active and extensive polemic. Digitization of money may take place sooner or later than expected time, but this is already inevitable. The development of technology can not be stopped or reversed. I want it or not, but there is only one thing – just follow the pace with the times and try to always be in the mainstream.