How many Bitcoins are in circulation?

Bitcoin has always been seen as the representative of cryptocurrencies and the prior choice for beginners who seek to make a fortune in the crypto arena. But how many on earth Bitcoins are in circulation？ Further, Bitcoin mining is also a heated topic, which will be extended in this passage: the equipment, the players, the stock… Finally, we will review the history of Bitcoin as a way to know it better.

In January 2024, there were around 18.6 million Bitcoins in circulation. However, the total number of Bitcoins that can ever be created is capped at 21 million by the Bitcoin protocol. This scarcity is one of the fundamental aspects of Bitcoin's design and is intended to prevent inflation.

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Bitcoins are created through a process called mining. Miners use powerful computers to solve complex mathematical puzzles, and when they successfully solve a puzzle, they are rewarded with newly created Bitcoins. This process is designed to become increasingly difficult over time, with the reward for mining a block halving approximately every four years in an event known as the “halving.”

The rate at which new Bitcoins are created is predetermined by the Bitcoin protocol. Initially, when Bitcoin was first created in 2009, the reward for mining a block was 50 Bitcoins. However, due to the halving mechanism, this reward decreases over time. The most recent halving occurred in May 2020, reducing the block reward to 6.25 Bitcoins.

Given that the total supply of Bitcoins is capped at 21 million and the rate of new supply issuance decreases over time due to halving events, it is estimated that the last Bitcoin will be mined in the year 2140. At that point, no new Bitcoins will be created, and miners will rely solely on transaction fees as incentives to validate transactions on the network.

It's worth noting that while 18.6 million Bitcoins have been mined as of my last update, not all of these Bitcoins are necessarily in circulation. Some Bitcoins may be lost due to forgotten passwords, hardware failure, or other reasons, making them effectively inaccessible.

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What is Bitcoin backed by？

Bitcoin is often described as being “backed by” wide-ranging factors, but it's crucial to understand that Bitcoin operates on a fundamentally different principle than traditional fiat currencies or commodities.

Network Security: One of the primary factors backing Bitcoin is its robust network security. Bitcoin operates on a decentralized network of computers (nodes) that validate and record transactions on a public ledger called the blockchain. This decentralized nature makes it resistant to censorship and tampering. The security of the Bitcoin network is maintained through a process called mining, where miners use computational power to solve complex mathematical puzzles, thereby securing the network and validating transactions.

Scarcity: Bitcoin's scarcity is another factor often cited as backing its value. The total supply of Bitcoins is capped at 21 million by the Bitcoin protocol. This scarcity is built into the code and is enforced by the decentralized consensus mechanism. Similar to precious metals like gold, the limited supply of Bitcoins contributes to its perceived value.

Utility and Adoption: Bitcoin derives value from its utility as a decentralized digital currency and its increasing adoption worldwide. As more individuals, businesses, and institutions accept Bitcoin as a form of payment and as a store of value, its utility and network effect grows, further supporting its value proposition.

Store of Value: Some proponents argue that Bitcoin's role as a store of value is a key factor backing its value. Unlike traditional fiat currencies, which can be subject to inflationary pressures due to central bank policies, Bitcoin's fixed supply makes it resistant to inflation. This property makes it attractive to individuals seeking to preserve their wealth over the long term.

Bitcoin mining: another option than investing directly in Bitcoin

Bitcoin mining is indeed an alternative way to acquire Bitcoin, distinct from direct investment. While investing involves purchasing Bitcoin on exchanges with the hope of its value increasing over time, mining involves validating transactions on the Bitcoin network in exchange for newly minted Bitcoins.

Here's how it works: Bitcoin miners use powerful computers to solve complex mathematical puzzles that validate and secure transactions on the blockchain. When a miner successfully solves a puzzle, they are rewarded with a certain amount of Bitcoin. This process requires significant computational power and energy consumption.

Mining can be lucrative, especially when the price of Bitcoin is high, as miners earn both newly minted Bitcoin and transaction fees. However, it also comes with its own set of challenges. The upfront costs of purchasing mining equipment can be substantial, and ongoing expenses like electricity bills must also be considered. Additionally, mining profitability can fluctuate based on factors like Bitcoin's price, network difficulty, and energy costs.

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Furthermore, the mining landscape has become increasingly competitive over the years, with large-scale operations dominating the market. This means that smaller miners may struggle to compete effectively.

How many miners are mining Bitcoin？

In May 2024, estimating the exact number of Bitcoin miners is challenging due to wide-ranging factors like the decentralized nature of Bitcoin mining, the fluctuating number of participants, and the dynamic nature of the industry. However, I can provide insights into the factors influencing the number of Bitcoin miners and their distribution.

Mining Pools: Many miners join mining pools to increase their chances of receiving block rewards regularly. These pools combine the computing power of multiple miners, making it difficult to determine the exact number of individual miners. Popular mining pools include F2Pool, Poolin, and Antpool.

Geographical Distribution: Bitcoin mining operations are distributed worldwide, with significant concentrations in regions with cheap electricity and favorable regulatory environments. China, for example, was historically a dominant player in Bitcoin mining, but regulatory crackdowns led to a shift in mining activity to other countries like the United States, Canada, and Kazakhstan.

Hardware Accessibility: The accessibility of specialized mining hardware, such as ASIC (Application-Specific Integrated Circuit) miners, impacts the number of participants. ASIC miners are expensive and require significant upfront investment, limiting the number of individuals and organizations capable of participating in mining.

Network Difficulty: Bitcoin's network difficulty adjusts approximately every two weeks to maintain a consistent block production rate of around 10 minutes per block. As more miners join the network, the difficulty increases, potentially discouraging smaller miners or those with less efficient hardware.

Market Conditions: The profitability of Bitcoin mining is influenced by factors like the price of Bitcoin, transaction fees, and the cost of electricity. Fluctuations in these variables can impact the number of miners participating in the network.

Environmental Concerns: In recent years, there has been growing scrutiny of Bitcoin mining's environmental impact due to its energy-intensive nature. Some miners and investors are prioritizing sustainability and seeking ways to utilize renewable energy sources for mining operations.

Why do they invest in digital currency: is Bitcoin a good investment？

While many individuals mine Bitcoin for profit, not all miners have the same motivations or objectives. Here are several reasons why people engage in Bitcoin mining:

Profitability: One of the primary motivations for Bitcoin mining is the profit potential. Miners earn newly minted Bitcoins as a reward for successfully solving complex mathematical puzzles that validate and secure transactions on the Bitcoin network. Additionally, miners may receive transaction fees as an additional incentive. With the right hardware, low electricity costs, and favorable market conditions, mining can be a lucrative venture.

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Supporting the Network: Bitcoin mining plays a crucial role in maintaining the security and decentralization of the Bitcoin network. Miners contribute computational power to validate transactions and secure the network against potential attacks or manipulation. By participating in mining, individuals help uphold the integrity of the Bitcoin protocol and ensure its continued operation.

Tech Enthusiasm: Some individuals are drawn to Bitcoin mining due to their interest in technology and cryptography. Mining provides an opportunity to engage with cutting-edge hardware, software, and algorithms. For tech enthusiasts, mining can be a rewarding hobby that allows them to experiment with different mining setups and optimization techniques.

Philosophical Beliefs: Bitcoin has attracted a passionate community of individuals who believe in its principles of decentralization, censorship resistance, and financial sovereignty. Some miners are motivated by ideological reasons and view Bitcoin mining as a means to promote economic freedom and challenge traditional financial systems.

Diversification of Income: For some individuals, Bitcoin mining serves as a source of diversification in their investment portfolio. By generating additional income through mining, they can hedge against market volatility and diversify their revenue streams beyond traditional assets like stocks or bonds.

Learning Experience: Mining can also serve as a valuable learning experience for individuals interested in cryptocurrencies and blockchain technology. Through mining, individuals gain a deeper understanding of how the Bitcoin network operates, the principles of consensus mechanisms, and the economics of mining rewards.

Community Engagement: Bitcoin mining often fosters a sense of community among participants who share common interests and goals. Miners may collaborate with others in mining pools, attend meetups or conferences, and contribute to discussions about the future of Bitcoin and decentralized finance.

Is the Bitcoin stock still sufficient？

The term “Bitcoin stock” can refer to wide-ranging aspects of the Bitcoin ecosystem, including the total supply of Bitcoin, the circulating supply, and the available liquidity in the market. Here's an overview of each aspect:

Total Supply: Bitcoin's total supply is capped at 21 million coins, a rule embedded in its protocol. This scarcity is one of the fundamental aspects of Bitcoin's value proposition, as it establishes digital scarcity akin to precious metals like gold. Currently, over 18.8 million Bitcoins have been mined, leaving fewer than 2.2 million Bitcoins left to be mined over the coming years.

Circulating Supply: The circulating supply refers to the number of Bitcoins actively being traded on the market. As of my last update, the circulating supply is influenced by factors such as investor holdings, trading activity, and adoption by businesses and institutions. It's crucial to note that some Bitcoins may be lost due to forgotten private keys or inaccessible wallets, further reducing the effective circulating supply.

Liquidity: Liquidity refers to the ease with which Bitcoins can be bought or sold in the market without significantly affecting their price. Liquidity is influenced by trading volume across wide-ranging exchanges, the depth of order books, and market participants' willingness to buy or sell at different price levels. Higher liquidity generally indicates a healthier and more active market.

Overall, while the total supply of Bitcoin is fixed, factors such as circulating supply and liquidity can vary over time due to market dynamics, investor behavior, regulatory developments, and technological advancements. As of my last update, Bitcoin continues to see increasing adoption by both retail and institutional investors, which has contributed to its liquidity and overall market depth. However, market conditions can change rapidly.

Bitcoin mining PC: what are the components？

Building a Bitcoin mining PC involves assembling hardware components specifically designed for efficiently solving the cryptographic puzzles required to mine new blocks on the Bitcoin blockchain. Here's a breakdown of the crucial components and considerations for building a mining rig:

ASIC Miners vs. GPU Miners: In the early days of Bitcoin mining, individuals could effectively mine using CPUs (central processing units) and later GPUs (graphics processing units). However, as the network difficulty increased and specialized hardware emerged, ASIC (application-specific integrated circuit) miners became the norm due to their superior efficiency and hashing power. While GPU mining is still feasible for some cryptocurrencies, Bitcoin mining is now dominated by ASIC miners.

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ASIC Miner: The core component of a Bitcoin mining rig is the ASIC miner. These devices are purpose-built for hashing algorithms like SHA-256, which is used in Bitcoin mining. Popular ASIC miners include models from Bitmain (Antminer series), Canaan (Avalon series), and MicroBT (Whatsminer series). When selecting an ASIC miner, factors to consider include hash rate, power consumption, price, and reliability.

Power Supply Unit (PSU): ASIC miners consume significant amounts of electricity, so a high-quality PSU is crucial to ensure stable operation and efficiency. Look for PSUs with sufficient wattage capacity, multiple PCIe connectors, and high energy efficiency ratings (80 Plus Gold or higher).

Cooling System: ASIC miners generate a considerable amount of heat while operating, so effective cooling is crucial to prevent overheating and ensure optimal performance. This may involve using dedicated cooling fans, heatsinks, or even immersion cooling systems, depending on the mining setup and environment.

Mining Pool Membership: Joining a mining pool is crucial for individual miners, as it allows them to combine their hashing power with other participants and increase their chances of earning consistent rewards. Popular mining pools for Bitcoin include F2Pool, Poolin, and BTC.com.

Mining Software: Once the hardware components are assembled, miners need to install mining software to connect their ASIC miners to the Bitcoin network and start mining. Examples of mining software for ASIC miners include CGMiner, BFGMiner, and Braiins OS+.

Electricity Costs and Profitability: It's crucial to consider the cost of electricity when mining Bitcoin, as electricity expenses can significantly impact profitability. Miners should research electricity rates in their area and calculate potential profits based on their hardware's hash rate, power consumption, and current Bitcoin price.

Bitcoin mining rig: Does every miner have to be equipped with one？

While it's not strictly necessary for every Bitcoin miner to build their mining rig, having access to dedicated mining hardware can significantly improve mining efficiency and profitability. Here's a comparison table illustrating the pros and cons of using a personal mining rig versus alternative options like cloud mining or joining a mining pool:

In summary, while having a personal mining rig offers greater control and potentially higher profitability, it requires higher initial investment and ongoing maintenance costs. Cloud mining and joining a mining pool are alternative options that require less upfront investment but may offer lower profitability and less control over mining operations.

About Bitcoin itself: when Bitcoin started

In the heart of the 2008 financial crisis, a mysterious figure under the pseudonym Satoshi Nakamoto unleashed a revolutionary concept in the world: Bitcoin. It was January 3, 2009, when Nakamoto mined the genesis block of the Bitcoin blockchain, effectively igniting a digital revolution that would redefine money and finance.

The timing was uncanny. Traditional financial institutions were crumbling under the weight of their excesses, leaving many disillusioned with the existing monetary system. Against this backdrop, Nakamoto's white paper, titled “Bitcoin: A Peer-to-Peer Electronic Cash System,” surfaced, outlining a decentralized digital currency that operated outside the control of governments and banks.

Bitcoin's genesis block, also known as Block 0, contained a message embedded within its code: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” It was a poignant statement, encapsulating the ethos of Bitcoin as a response to the failures of centralized financial systems.

As the first cryptocurrency, Bitcoin represented a paradigm shift in how we perceive and transact value. It introduced the concept of blockchain technology, a distributed ledger that records all transactions immutably and transparently. Transactions on the Bitcoin network are verified by network participants (miners) through a process known as proof of work, ensuring the integrity and security of the system.

In its infancy, Bitcoin was met with skepticism and curiosity. Its value was virtually negligible, with early adopters mining coins on personal computers. However, as its utility and adoption grew, so did its value. Bitcoin's price surged from a fraction of a cent to over $1,000 within a few years, capturing the attention of investors, technologists, and speculators alike.

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Over the years, Bitcoin has weathered numerous storms, from regulatory crackdowns to scalability challenges. Yet, it has persisted, evolving into a global digital asset with a market capitalization in the trillions. Its decentralized nature and limited supply of 21 million coins have made it a hedge against inflation and a store of value in turbulent times.

Today, Bitcoin stands as a symbol of financial sovereignty and individual empowerment. It has inspired a wave of innovation, spawning thousands of alternative cryptocurrencies and blockchain projects. Yet, amidst the frenzy of speculation and hype, the core principles of Bitcoin remain unchanged: decentralization, transparency, and censorship resistance.

As we reflect on Bitcoin's journey since its inception, one thing is clear: its impact transcends mere monetary value. It represents a beacon of hope for a more equitable and inclusive financial system, one built on trustless protocols and decentralized governance. And as we look to the future, the story of Bitcoin is far from over—it is just beginning.

Precio del Bitcoin in different historical stages

here's a summary of Bitcoin's price at different historical stages along with significant events that influenced its value:

These price ranges are approximate and based on data from wide-ranging exchanges and historical records. If you find fluctuations in Bitcoin can‘t represent Bitcoin’s history, click here to know more: https://www.youtube.com/watch？v=-m22d6tPaj4

How to convert Bitcoin into the American dollar？

Converting Bitcoin into American dollars (USD) involves several steps, including selecting a suitable exchange platform, creating an account, depositing your Bitcoin, and executing a sell order. Here's a detailed guide on how to convert Bitcoin into USD:

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Choose a Reputable Exchange: The first step is to choose a reputable cryptocurrency exchange that supports the conversion of Bitcoin to USD. Some popular exchanges include Coinbase, Kraken, Binance, Gemini, and Bitstamp. Ensure that the exchange is compliant with regulations and has a good reputation for security and customer support.

Create an Account: Once you've selected an exchange, you'll need to create an account. This typically involves providing your email address, creating a password, and completing any necessary verification steps, such as identity verification (KYC) and two-factor authentication (2FA).

Deposit Bitcoin: After creating an account, you'll need to deposit your Bitcoin into the exchange's wallet. This usually involves generating a deposit address within your exchange account and sending your Bitcoin from your wallet or another exchange to this address. Be sure to double-check the deposit address to avoid any mistakes, as transactions on the Bitcoin network are irreversible.

Initiate a Sell Order: Once your Bitcoin deposit is confirmed and credited to your exchange account, you can initiate a sell order to convert it into USD. Navigate to the trading or exchange section of the platform and select the Bitcoin/USD trading pair. Then, specify the amount of Bitcoin you want to sell or the amount of USD you want to receive.

Set Price and Execution Method: Depending on the exchange, you may have the option to specify the price at which you want to sell your Bitcoin (limit order) or execute the order at the current market price (market order). Choose the appropriate option based on your preferences and market conditions.

Confirm and Execute Order: Review the details of your sell order, including the quantity of Bitcoin to be sold and the corresponding USD amount. Once you're satisfied, confirm the order to execute the trade. The exchange will process the transaction, and your Bitcoin will be sold for USD at the agreed-upon price.

Withdraw USD: After the sell order is executed successfully, you can withdraw the USD proceeds from the exchange to your linked bank account. Follow the withdrawal instructions provided by the exchange, which may include entering your bank account details and confirming the withdrawal request.

Monitor Transaction and Confirm Receipt: Monitor your bank account for the arrival of the USD funds. Depending on the exchange and your bank's processing times, it may take several business days for the funds to be credited to your account. Once you receive the USD, the conversion process is complete.

FAQ:

Is crypto still a thing？ Yes, cryptocurrency is still a prominent and evolving asset class with growing adoption and technological advancements.

What could be the next halving event of Bitcoin？ The next Bitcoin halving event is projected to occur approximately every four years, reducing the mining rewards by half. The most recent halving event took place in 2020, so the next one is expected around 2024.

What could influence the price of Bitcoin？ Several factors can influence the price of Bitcoin, including market demand, investor sentiment, regulatory developments, technological advancements, macroeconomic trends, and geopolitical events.

Can I collect Bitcoin and not put it into circulation？ Yes, you can hold Bitcoin as an investment without spending or circulating it. Many investors hold Bitcoin in anticipation of its value increasing over time.

Is mining Bitcoin better than purchasing Bitcoin？ The decision between mining and purchasing Bitcoin depends on wide-ranging factors such as access to cheap electricity, mining hardware costs, technical expertise, and investment objectives. For many, purchasing Bitcoin directly may be a more straightforward and cost-effective option.

Bitcoin has been converted into a symbol of the crypto economy instead of a mere investment form, enabling it to perpetuate in this volatile and fast-changing world. How do you like it？ Do you want something new or something old-aged？