Bitcoin mining serves two main functions: securing transactions and introducing new Bitcoins into circulation. Miners use specialized hardware to solve complex cryptographic puzzles and, when successful, add a new block of verified transactions to the blockchain and receive a reward in newly generated Bitcoins. As the supply cap of 21 million coins is reached, miners will earn transaction fees instead of new coin rewards. The hashrate, which measures the total computational power of miners, has reached record highs since the fourth halving in April 2024, indicating increased network security. The rise in hashrate may be due to the moderate price increase post-halving, making mining more lucrative. The Bitcoin mining difficulty, which represents the level of computational challenge miners face, has surpassed 101.6 trillion, ensuring a steady issuance of new Bitcoins by preventing oversupply or undersupply. The growth in difficulty can impact the circulating supply and potentially trigger a price rally.
- Content Editor ( u.today )
- 2024-11-09
How Does Bitcoin Mining Affect BTC Price?