What is Bitcoin?
Bitcoin appeared in 2009 and since then it has concurred the financial sphere. What is Bitcoin? It is a virtual currency. A person can create, distribute to specific accounts, trade, exchange, and store bitcoin in your wallet with the use of a distributed ledger system as a blockchain. Each bitcoin has a unique code without which it is worthless. It is created
To get bitcoins a person needs:
- to create them on their computer
- to sell stuff/services and be paid with bitcoins
- to buy them with real money
If you plan on mining Bitcoin, first things first you need a powerful computers to get them. Be prepared that this process takes a lot of time and real energy to get a single Bitcoin. However, the process is worth the result.
Cryptocurrency Trends in 2020
Since 2009 has passed already ten years. Bitcoin has had its ups and downs, however, now it is popular more than ever. Specialists believe 2020 will bring for bitcoin such major trends:
Every new Bitcoin which will be generated approximately every ten or twenty minutes will be split in half. For example, from 12,5 Bitcoin in each block will be generated 6,25 Bitcoin. The emission of cryptocurrency also will become slower. Some experts hold a view that the emission of Bitcoins will be declined to 900 numbers per twenty-four hours. Such a case happens every four years. In 2020 halving is expected in the midst of May-June.
Specialists differ in opinion on how this situation will influence the Bitcoin pricing. Regardless, over the course of its existence Bitcoin survived several halvings. The previous halving shows that prices will rise either before or after emission will dropdown.
Transition to digital gold
Reference to bitcoin as gold started as a joke. However, in 2019 this joke came closer to reality. As a matter of fact, some congressmen considered a bitcoin as a threat to the dollar’s superiority in the world’s economy.
In such a case, the closer relation between bitcoin and real gold becomes the more virtual coins will be accepted by the market participants. Besides, after it was introduced into central bank-issued digital currencies it may give a sense of value proposition of Bitcoin for the community.
Schnorr, Taproot, and Tapescript
These are the names for the soft-forking upgrade of the network. Such changes will improve privacy, general; scalability and functionality of smart contacts of the Bitcoin network. Implementing them will take place as early as this year.
Does Price Change After Bitcoin Mining Energy Costs?
Initially, expences on cryptocurrency mining were the main factors that influenced the price of bitcoin. Trading has become distinctly popular but mining with it does not become cheaper. If anything after bitcoin halving a person will need much more powerful machines. Such changes only lead to an escalation of energy costs.
The Bitcoin mining price and compensation are formed in such a way: the sum of mined coins per day is doubled by the price of assets. Statistics show that in 2018 they could already cost twelve million dollars. However, in 2015 they cost only two million dollars. Bobby Lee, CEO of BTC in China, forecasts that everyday expenses on bitcoin will reach fifty-four million dollars. Although the price for the asset will advance to sixty thousand dollars per one coin.
While the situation with other currencies looks unstable, cryptocurrency has a vise versa outlook.
The escalation of bitcoin’s prices is formed on the actual position of affairs. Although forecasts might not come true, bitcoin halving will increase the price for sure. Many miners are sure of that because the world of virtual money every time proves itself as a worthy opponent to real wallets. Trends show that cryptocurrency evolves and successfully incorporates itself in many spheres of the real world.
Who knows maybe in ten or twenty years Bitcoin will take up the reins and such currency as the dollar will be only in history books and those who invest in Bitcoin today might be a billionaire in the future.
However, each move of a trader should be calculated and cautious.