As technical as the cryptocurrency and Bitcoin (BTC) markets, there are some fundamentals that drive the market. These include the growing widespread acceptance of cryptocurrency, the viral tech blog amount of power invested in mining the coin, and its availability, to name a few. Now that BTC / USD is trading at new all-time highs, the viral tech blog the market can expect the bullish trends to continue because there aren't many reasons for the market to reverse until a clear top forms. Based on what we're seeing in the market, the viral tech blog BTC / USD could easily hit $ 59,000 this year and that estimate might be too low.
While mining Bitcoin used to be very straightforward, the viral tech blog influx of miners (along with other factors discussed below) increased the difficulty rate and lowered the reward. It is now practically impossible for a lone trader to mine a single BTC without the help of 1) a large number of expensive mining resources or 2) the help of a mining pool. The viral tech blog. Mining pools tend to operate where electricity is cheap but there are still costs, not to mention the overhead of running a large mining operation. The latest estimates put the cost of 40 TH / s of computing power at $ 4.32 a day. It may seem small, but the viral tech blog accumulates throughout the year. The annual cost is about $ 1,576 with an expected reward of 0.08875 Bitcoins or around $ 3,017 with BTC trading at $ 34,000. That's a 47% gross margin and then add in the cost of buying or renting a unit. The bottom line is that Bitcoin costs money to mine and that's where much of its intrinsic value resides.
2. There is no unlimited supply
The value of Bitcoin is also largely driven by supply, and the supply is declining. Only 21 million real BTC will be minted. That doesn't account for wrapped BTC or other types of wrongly sourced BTC which will ultimately affect the price of BTC as well. But coming back to supply, the viral tech blog of the 21 million, almost 90% have already been mined, leaving just over 2 million for the mining community to split. And not only that, but you also have to consider the halving. A halving is when the Bitcoin mining reward is cut in half. The purpose of this is to help control BTC inflation and extend the useful life of the pool of mineable BTCs. The halving occurs every four years, the viral tech blog so far there have been three, and the most recent was last year. The bottom line here is that people who want to own a Bitcoin or use a Bitcoin must buy one of the few that already exist.
3. There is an increasing number of BTC addresses
Technically, the viral tech blog because of the way the BTC network is configured, there is already an infinite number of addresses. The system is set up that way to help make it harder to find a specific address and hack it. However, the most important figure is the number of Bitcoin wallets that currently have BTC. That figure saw a year-on-year increase in 2020 that has the total number of wallets in use at more than 1 million. That doesn't sound like a lot, the viral tech blog but you have to remember that the supply is limited and the number of large breeders and whales is increasing in the middle digit. The number of whales, BTC holders with more than 1000 BTC in their account increased by 7%, while the smaller accounts with 5 to 100 BTC increased by 4%. In total, the viral tech blog BTC whales hold almost 2.3 million BTC, viral tech blog while smaller investors account for more than 10 million BTC. That's not much for the truly small retail investors who are also flooding this market.
4. The mining community continues to grow
If Bitcoin were not an attractive and lucrative investment, the mining community would not be growing and it is growing. The viral tech blog's most recent data shows the hash power or amount of computing power attributed to the BTC network at a new all-time high. The bottom line here is that Bitcoin's hashing power has only increased in the long term and is likely to continue to set new highs in the future. There is a lot of competition for a diminishing supply of coins.
5. Bitcoin is the world's reserve cryptocurrency
Bitcoin has long been the world's reserve cryptocurrency because it is the easiest to use, the most widespread, the viral tech blog first that most new users buy, and its role in the challenge. Proof of this is the dominance of the coin market over its percentage of the total cryptocurrency market cap. With the exception of a brief period in 2017 and 2018, when the Altcoin craze was underway, Bitcoin has always represented at least 50% of the total market cap. Lately, the viral tech blog this percentage has risen to over 60% where it has been trending since mid-2019. The bottom line here is that when the world turns to crypto, the viral tech blog Bitcoin is the first name they look for. And the world is heating up with crypto.
6. Bitcoins are lost, locked, and burned every day
As if the limited and falling supply weren't enough to support the BTC price movement, there is the lost BTCs to consider. Estimates vary, the viral tech blog but investors should assume that around 3.7 million BTC is already lost or unrecoverable. An analyst estimates that 1,500 BTC are lost every day. What this means lost is that they are in unrecoverable wallets. We know where they are on the blockchain, but no one can access them for 1 of 2 reasons. The first is that they are really lost due to password protection and/or lost devices. These parts will never come back to the market. The second burns. Some blockchain operations require you to lock or burn coins. He is essentially losing coins on purpose, the viral tech blog but in a way that generates a new value. For example, the viral tech blog if we wanted to launch our own cryptocurrency, viral tech blog we could burn $ 1 million worth of BTC and produce $ 1 million MarketBeat coins.
