Bitcoin is the top-ranking cryptocurrency, which is an open-source network with cryptographic protocol encrypted by a mathematical algorithm. It was founded by Satoshi Nakamoto. The inception of Bitcoin paved the way for various other crypto-currencies. There are around 21 million coins in circulation with just 3 million more to be mined.
Bitcoin’s market situation:
The prices of bitcoins have risen by 48% this year with its market cap valued around Rs 11.21T. The current value of 1btc to INR is Rs 6,22,904. From 10.06M coins to 17.96M coins have been in circulation from 2012 to 2019 in India alone. But this rise is a bit lower than the expectation as various other currencies have much more benefits such as transacting smaller values and perform much faster than bitcoins.
This is because of the following reasons
- The supply of bitcoins has increased with the increase in transactions, i.e.new coins are mined after every block transaction happens, and many such blocks have taken place.
- The cost of production is high because of the electricity used and for the number of algorithm decoders join the fray, as the blockchain can be cracked open only solving the problems. On solving, the person can take the new block of coins. Thus the production cost of mining is high.
- They have their internal governance and hence the prices are regulated on regular intervals.
Bitcoins have a pragmatic and prosperous future as people are interested in buying them despite their rising values. Moreover, though they are not governed by any central authority they are being accepted as a medium of exchange widely over the globe.