Unless you have been living under a rock for the past few years, you will have definitely heard of Bitcoin. Bitcoin and crypto currencies in general are changing the way we think about money. Just like gold, Bitcoin are mined. But Bitcoin mining is done using online-based mining rigs and specialised hardware.
Here are 5 surprising facts about bitcoin mining.
Fact 1: China is the king
China has been the go-to bitcoin mining location in the world with almost 79% of the mining being done in China. China has many areas that have low-cost electricity and a colder climate that is perfect for bitcoin mining.
Fact 2: Emerging future locations
China may be the king until now, but newer bitcoin mining farms are being opened in Canada, Russia, Australia, Iceland and Eastern Europe. China’s ban on cryptocurrency is driving the bitcoin mining business away from China and towards these other countries that also have cold climates and lower priced electricity.
Fact 3: Daily mining estimate
Every day, close to 3400 Bitcoins are collectively mined all over the world. This amounts to around $34,000,000 in value at a bitcoin price of $10,000 per coin every single day.
Fact 4: Bitcoin usage
Although 3400 Bitcoins are mined every day, not all of them are transacted. Around 62% of all coins that were ever mined have never been transacted. They are held as an investment. This implies that only around 38% of Bitcoins mined are used in transactions.
Fact 5: End of Mining
There can only be a maximum of 21 million of Bitcoin in existence ever. Also, the difficulty of bitcoin mining is increased as more and more Bitcoins are mined to make it harder to mine them. However, if the current pace of mining is maintained, it is expected that all of the available Bitcoins will be mined by 2036. Once coins can no longer be mined the model will change to transaction fees incentive basis.
Bitcoin is likely the future of currencies and will change the way we send money and make purchases. Bitcoin ATMs are already in use in certain countries and will likely become commonplace soon.