Bitcoin Forum

I am yet to fully understand how the bitcoin or any crypto, works entierly and if someone does not mind helping me clear a few thoughts that cross my mind.
if there's only 21 million bitcoins to be mined by year 2100+ , why is that the majority have already been mined in such a short amount of time, why has it been so "easy" ?
My understanding is that the miners are the ones that keep the blockchain alive. Now, that it will get harder and harder for them to mine, they will be less and less miners in the blockchain.
If they will make income of just the transactions, wouldn't that make up for higher fees? If so, doesn't that go against the whole idea of having small fees, compare to what the current banks offer.
At the end of the day, crypto its a good investment or opportunity for people to make money but when theres no money to be made, then what?
Thanks .

Hi the fees will be small because the price of bitcoins will increase!

The world of Bitcoin is in for quite a reality shock in about a year from now. As most people are well aware of, the amount of bitcoins being mined every day is much compared to a few years ago. What is even more intriguing is how the vast majority of BTC has been mined already. In January of 2018, 80% of all 21 million BTC will be mined and brought into circulation. A significant milestone that should not be overlooked by any means.

Just look at this:

https://cointelegraph.com/storage/uploads/view/1d067f3721f10f0a76439de9860a4e54.png

Then read this:

https://en.bitcoin.it/wiki/Controlled_supply

Basically, the supply is predictable, the inflation rate is decreasing every 4 years, and why people mine bitcoins? well, because it's profitable for them, easy as that.

This is mostly because Bitcoin gained a lot of traction when it surpassed the $1000 mark a few years ago. At that time, it saw a growth of over 80% new users and obviously a good amount of them would've started mining. As we move ahead, keep in mind that the block reward will keep decreasing exponentially as more and more BTC is mined. With more users mining, it could reach 85-90% of total supply in a few years from now and the last 10% would probably take a decade or two.

A decade or two? Whoa... Might be due to many miners would have quit mining by that time.

Miners require a block in order to mine for a new block, and therefore a miner who finds block gets a head start on finding the next block. In fact, the miner can start mining under the assumption that their found block is valid without others validating it or even without validating it themselves.

In last segregated witness block site increased more in numbers. When bitcoin being mined supply will be normal. If there is any issue in the block segregation and fees increment time mostly all the transactions are delayed whenever the transaction pass up and down.

Have already produced 80% of the bitcoins mined? whence such data? I think your information is not relevant. Now only 45-50% of bitcoins are mined and each time mining is complicated and many miners have to extract other more promising crypto-currencies. If I'm not right about something, correct it. Thank you in advance.

The level of production of coins is steadily decreasing. It is clear. I don't understand why people would get them. If the price of bitcoin will continue to grow steadily, everything is clear. What if this happens? The price of bitcoin does not depend on its production. It depends on the demand. It turns out that if the price of bitcoin will decrease or stop the production of coins will be stopped?

It is very obvious though, people mostly when and unemployed people are entering in the bitcoin mining business so that they can make some money and there are even government sponsored mining companies who mine the cryptocurrency for their country.

the rate at wich bitcoin are  mined by miners is something of concern for btc traders and investors coz the rate at which btc are minned is too high so after few years btc will increase in quantity and lose its value.

I think one of the important insights is that "As inflation goes to zero miners will obtain an income only from transaction fees which will provide an incentive to keep mining to make transactions irreversible."

Looks like someone didn't do his/her research.  ;)

While bitcoin's hashrate increases due to more people trying out mining, the difficulty also increases, hence also lowering the bitcoins being minted. The difficulty gives bitcoin mining a sort of balance. And yes, the quantity will increase. But along with it, demand also will most probably increase, as long as mining difficulty. So it definitely wouldn't lose value. Not to mention bitcoin is only capped at 21 million.

https://blockchain.info/charts

Because that is the way Satoshi set it up.

Bitcoin is designed so that a block gets create on average about once every 10 minutes.  In the beginning it was set up so that each block created 50 bitcoins.  That continued for 210,000 blocks.  Then the amount of new bitcoins created with each block gets cut in half. It continues to get cut in half every 210,000 blocks.

210,000 blocks at a rate of 1 block every 10 minutes is approximately 4 years.

This means that HALF of all the bitcoins that will ever exist were created in the first 4 years.  Then half of the remaining bitcoins that will ever exist (one-fourth of ALL bitcoins) were created in the next 4 years.  At that point, three-fourths (one-half + one-fourth) of all bitcoins had been created.  Then half of the remaining bitcoins (one-eighth of ALL bitcoins) will be created in the following 4 years (we are currently about 25% of the way through that right now).  This continues creating ever smaller amounts of new bitcoins every 4 years until somewhere around the year 2136 when each block will create 0.00000001 new bitcoins.  After that the amount is reduced to 0 new bitcoins from then on.

So, in the year 2020 when it is cut from 12.5 new bitcoins per block to 6.25 new bitcoins per block, seven-eighths of all bitcoins will already have been created.  Then in the following four years, one-sixteenth of all bitcoins (half of the remaining eight) will be created, leaving only one-sixteenth left not yet created.
 

The difficulty is adjusted to keep the global mining rate close to one block every 10 minutes.  As more mining power is added to the system, blocks get created too quickly, so the protocol requires the difficulty to be increased.  If global mining power ever decreases, blocks will get created too slowly, so the protocol requires the difficulty to be reduced in that case.

Specifically, the difficulty adjustment is made once every 2016 blocks.  If it takes less than 20160 minutes to create those 2016 blocks, then the blocks are occurring too quickly.  The difficulty is increased proportionally to slow the rate back down to 10 minutes per block.  If it takes more than 20160 minutes to create those 2016 blocks, then the blocks are occurring too slowly.  The difficulty is decreased proportionally to speed the rate back up to 10 minutes per block.


If the total global hash rate decreases, then it will get easier to mine.


The subsidy of new bitcoins will get cut in half approximately every 4 years.  Eventually, more of the miner's revenue will come from the transaction fees and less from the subsidy.  This is how bitcoins was designed to operate.  Eventually, all of the miner's revenue will some from the transaction fees.


The Satoshi whitepaper said NOTHING about bitcoin having lower fees.  Bitcoin was designed to eventually operate on a fee based system.


Bitcoin is intended to BE money.  It is not intended to be an "investment opportunity for people to make money".  Right now, because its popularity is growing and there is a high demand for owning bitcoins, the exchange rate is going up quickly.  There will come a time though when the exchange rate will stabilize.  At that time it will still be very useful for paying for things and storing value.


Then people will use it, just like they use any other form of money.  They will have a job that will pay them with bitcoins.  They will use bitcoins to pay for things.  They will invest their bitcoins in businesses or loans.

Because there is a lot of supply. And those supplies are just here to be mined by miners all around the globe. And you wouldn't be surprised if those bitcoins would be mined. Because of higher demands the price of it will go HIGH!

It is true that bitcoin is only limited for about 21 million and most of are already mined for a short period of time. It will be harder for the miners to mine the remaining bitcoin since theres only a few amount left in bitcoin and i think the price of the bitcoin will be more higher since it is harder to find. Also i agreed to you that investing in crypto is a good idea as well as an opportunity to people to make money.

of course by looking at the high unemployment rate and advanced technology so fast it can change people's thinking by looking for easier business and make a lot of money.
mining is now in the interest of many people.
which causes bitcoin to have been in the mines.
it would be quite possible if the mine encounters the end point in the near future.
and maybe this will make the bitcoin price higher

What the fuck man? The fee is calculated compare to the price of bitcoin, not to the price of USD. The higher the price of bitcoin is, the higher the fee will be. Stop saying something that you do not know about it. You such an idiot man

Blockchain has a factor called difficulty which determines the size of entire mining network and corrects itself based on that - more mining power, higher difficulty and vice versa. This is done once every 2016 blocks which is approximately every 14 days. Protocol is designed in this way that approximately every 10 minutes new block should be mined. This parameter exists so it can keep the lid on the production. https://charts.bitcoin.com/chart/difficulty

because difficulty level are not that high before, unlike today since less number us left to be mined it will be more hard to mine it.

Thanks for your breakdown, it answers my concerns.  You rock!!!
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Then people will use it, just like they use any other form of money.  They will have a job that will pay them with bitcoins.  They will use bitcoins to pay for things.  They will invest their bitcoins in businesses or loans.
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That is a scary good thing, if it would be to happen it would basically replace all 80 trillion physical money or the total liquefiable currency $1.2 quadrillion(if the numbers given are true)

In my opinion, a large part of it was dug in the simplest way. People felt it was worth it and they certainly did not disappoint. Those who knew the things they earned a lot of money. Unfortunately, there was not much to dig for ...

The world of Bitcoin is in for quite a reality shock in about a year from now.Miners require a block in order to mine for a new block, and therefore a miner who finds block gets a head start on finding the next block. In fact, the miner can start mining under the assumption that their found block is valid without others validating it or even without validating it themselves.

for me world of Bitcoin is in for quite a reality shock in about a year from now. As most people are well aware of, the amount of bitcoins being mined every day is much compared to a few years ago. What is even more intriguing is how the vast majority of BTC has been mined already. In January of 2018, 80% of all 21 million BTC will be mined and brought into circulation. A significant milestone that should not be overlooked by any means. and thats all

Miners will not decline only the users are the one that declines. Some big people really put up their money in Bitcoin Mining imagine a while factory like warehouse being filled with mining rigs and gear sure mining is hard but if you keep mining and farming for txid in this forum you'll get probable some rewards after sometime but is discourage those who mine with only 5 or 7 gpu's in their mining business mate that's not enough for competing a large number of miners all over the world.