It Is Now More Difficult To Mine Bitcoins

Despite the fact that bitcoin has its value increased by a lot, the fact remains that the cryptocurrency is now almost down to its remaining few supply in circulation. Bitcoin is the leading digital currency in the world but it has proven to be more difficult to mine than before. The fact of the matter is that the current situation has already been written in the digital currency’s code. It is a protocol that once every four years, the incentives those miners are receiving must be cut in half. It is designed in order to make sure that the bitcoin will not suffer from inflation and to keep the currency in check. This is the reason why last Saturday, the usual 25 bitcoins that were awarded to miners for every 10 minutes of mining has been reduced to 12.5 bitcoins only.

Since the bitcoin is a currency with no physical pieces to be circulated around and exchanged just like the conventional ones, this is made to circulate with the help of the users called miners. These users are the ones operating thousands upon thousands of computers at all times for 24 hours of every day. Their operation includes processing the blocks of the most recent transactions that are conducted using bitcoins. In order to understand more clearly, the miners record every transaction made and they are recording around 225,000 transactions involving bitcoins every day. This continued operation made sure that the amount of bitcoin in circulation continues to increase in number. The current amount that is in circulation is said to be around $10 billion.

As of the current state, there are less bitcoins available to be mined making the process harder and the competition tougher among the miners. According to the co-founder of the Genesis Mining which is based in Germany, Marco Streng, the most essential thing to keep in mind is to make mining an efficient process. The firm is currently running farms all over the globe including mining farms from Iceland, the United States, Canada and Eastern Europe. Firms have greater chance than those mining bitcoin for individuals alone.