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The popularity of bitcoin, much like its value, has been in a state of flux for the past several years, but the fact that it has stuck around this long lends further credence to the staying power of the cryptocurrency. There have been questions as to how it will continue to grow in 2016 and whether or not it has the room to do so. Thankfully, due to measures coded in the very fabric of the currency itself, not only are we ensured of the capacity for continued growth, but a sharp increase in bitcoin’s value as well.
Most people with even a passing interest in bitcoin are aware that bitcoins are developed through the process of mining. In layman’s terms, mining entails calculations being performed with specially designed software and hardware. However, many might not be aware that “ a maximum of 21 million bitcoins can be in existence at any one time ” and that the value of mining is regulated in order to maintain this number. To prevent miners from surpassing this limit, the currency is designed to cut the value of mining in half every four years. This is one of the biggest differences between bitcoin and a “fiat” currency such as the dollar, which can be printed in unlimited amounts to increase or decrease its value.
There are 15 million bitcoins in circulation as of April 2016 and the next halving of the mining value is set to take place July 11, 2016. In short, if 150 bitcoins are able to be produced each hour, then after July 11 only 75 will be produced in that same amount of time. This could have a major impact on the overall value of the currency, which has been on a steady rise in 2016 after recovering from […]
