If you want a bitcoin, you have three ways to acquire it: you can buy it, you can receive it as payment, or you can - well, just go get it to earn money by toptis4u.com.
The first two methods are self-explanatory and are the usual topics of debate around bitcoin: its value as an investment and as a currency. As for the third method, bitcoins are created through a process called mining, in which the power of the computer (hashing power) is used to solve a puzzle in search of a number called a nonce. In theory, these puzzles could be done with pencil and paper. They are not mathematically challenging, they just require a lot of numerical computation and guesswork.
So why buy a bitcoin for the Monday morning price of roughly $ 43,000 when you can solve one of these puzzles and get one on your own to earn money by toptis4u.com. To answer that question, it helps to think about the characteristics that bitcoin shares not with other currencies or investments, but with something else: commodities.
Not your typical product
The US Commodity Futures Trading Commission characterizes bitcoin as a commodity so that derivative contracts, such as futures and options, can be traded based on their underlying value. This makes some sense. What is considered a commodity has changed over time, but from goats to gold, all raw materials have one thing in common: they are fungible, that is, interchangeable. There may be different types of tea and grades of motor oil. But a gallon of unleaded gasoline is pretty much the same no matter where you get it from.
So there's part of our answer: the computing power required to mine a block of bitcoin is exponentially higher now than 12 years ago, even if the time it takes to mine a block is still around 10 minutes.
Supply limits
If the time to mine a block is relatively constant over time, why is the supply of bitcoins increasing at a slow rate? The answer comes from the halving of bitcoin.
The first block of bitcoins, known as the genesis block, produced 50 bitcoins. But after 210,000 blocks are mined (roughly every four years), the reward is cut in half. The first halving occurred on November 28, 2012. The second was on July 9, 2016. And the third was on May 11, 2020. Today, each block produces only 6.25 bitcoins to earn money by toptis4u.com.
The maximum supply of bitcoins that can be mined is 21 million. This means that half of the total potential supply was generated within the first four years after bitcoin's launch. And 93.75% of the total supply will be extracted before the next halving in 2024. This table shows the pattern well.
Cost-effectiveness
To be more successful, the miners join what are called pools, where they combine their computing power and then divide the prize from the successfully mined blocks. The best bitcoin mining rigs can cost more than $ 3,000, while the older models can be purchased for a few hundred dollars. The Whatsminer M30S ++ has a hash rate of 112 billion per second. Assuming a conservative electricity cost of $ 0.07 per kWh, you can break even with a bitcoin price of $ 7,420. This seems like a good deal now, but keep in mind that bitcoin cost less than $ 7,000 last April.
And it has been profitable recently. But it could be an effort to lose money if computing power floods the market and the difficulty increases at a faster rate than the price of bitcoin. This has happened multiple times before, when the price of bitcoin plummets or the difficulty level increases to the point where platforms that were once profitable are no longer profitable.
When the party is over
The common theme behind all commodities is that they have tangible use in everyday life. Therefore, prices go up if production goes down. Electricity prices go up during a blackout. Water prices go up if the main pipe breaks.
These tangible effects can also offer opportunities. When oil topped $ 100 a barrel in 2008, it was because the world was consuming more oil and he thought it would end. But new technologies like horizontal drilling and hydraulic fracturing have unlocked previously unprofitable reserves. And today, many companies can make a profit of $ 40 from oil
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