Trump: "Bitcoin will be made in USA"
(twitter.com)
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I do not understand bitcoin. there is only a set quantity of bitcoin, yet people can mine more? from the ether of the interwebz?
I don't know a bunch of info about it, but from what I hear from Bitcoin maxi's is that it's an asset and not a currency.
I get that part. but how can you mine more when there is only a finite quantity? and that quantity is already distributed.
That's incorrect. Around 19 million Bitcoin have been mined. The final Bitcoin (21 million) is projected to be mined in the year 2140.
If you want an explanation of why that is, then here's a link... https://www.bitcoinblockhalf.com/
I asked chat GPT, what makes bitcoin finite?
Here is the answer...
Bitcoin is finite due to its underlying protocol, which was designed to limit the total supply to 21 million coins. This scarcity is a fundamental aspect of Bitcoin's design and is achieved through several key mechanisms:
Protocol Rules: Bitcoin operates on a decentralized network governed by a set of rules encoded in its software, known as the Bitcoin protocol. These rules include the total supply cap of 21 million bitcoins. Any change to this cap would require a consensus among the majority of participants in the network, making it highly unlikely.
Block Reward and Halving: When Bitcoin was introduced, miners received a reward of 50 bitcoins for each block they successfully mined. This reward is halved approximately every four years, an event known as "halving." The halving process continues until the block reward reaches zero, which ensures that the issuance of new bitcoins decreases over time. This geometric progression ensures that the total number of bitcoins will asymptotically approach, but never exceed, 21 million.
Cryptographic Consensus: Bitcoin's network relies on a consensus mechanism known as Proof of Work (PoW). Miners compete to solve complex cryptographic puzzles to add new blocks to the blockchain. This consensus mechanism ensures that the creation of new bitcoins follows the protocol rules, including the supply cap.
Mathematical Precision: The finite supply is also a result of Bitcoin's use of fixed mathematical algorithms. Bitcoin's issuance schedule is predetermined and follows a predictable and transparent path, ensuring that the supply is strictly controlled.
Decentralization and Network Consensus: Bitcoin's decentralized nature means that no single entity controls its issuance. Changes to its core protocol, including the supply cap, require broad consensus across the network's nodes. This decentralization helps enforce the scarcity of bitcoins.
The finite supply of bitcoins is a key feature that differentiates it from traditional fiat currencies, which can be issued in unlimited quantities by central banks. This scarcity is often cited as a reason for Bitcoin's potential as a store of value, akin to precious metals like gold.
There’s less than 2 million remaining to be mined. We already know it can’t exceed 21 million so we’re just watching the mathematical formula being executed. The protocol almost forces the price to increase. It’s a libertarian wet dream in cryptographic form. I believe the white hats may have started Bitcoin to provide us with a monetary lifeboat to survive these trying times.
What we need to be asking ourselves is what inherit value is backing bitcoin. Which sovereign nation, as we know, none nada zip, only hope. So, you have something that some people perceive is valued but no gold reserves or anything attached to it. It reminds me of the days when people were investing in beanie babies. Same exact scenario, limited production, perceived as valuable until they were not. I actually know people who invested retirement money in these things. So at the end of the day, people have to believe it is valuable and continue that hope, with no real assets backing it.
I know we can say the same about US currency as well as other nation's currencies, but at least in those scenarios, you have the backing of those nations and in this scenario, you have santoshi. Isn't there also another huge tranche of bitcoin that is sitting unreleased and not this last 2 million coins? I am just concerned that it really seems like a MLM scheme and someone is going to be left holding the bag.
not even I fully grasp it, but you cannot think of it like digging in the dirt for gold chunks. Mining is everyone verifying the public ledger, and getting a small prize for helping hash the numbers.
Or that the total amount of BTC are "already distributed". Because they aren't.
People are also LOSING access to their coins (people throwing out hard drives with wallets, forgotten passwords, deaths with nobody knowing about them etc) so they are getting more and more rare as they disappear forever when lost (you cannot "re-find" a bitcoin, once its lost its gone forever).
Its a lot to learn about, and I still don't have it down fully.