Is Bitcoin mining the only way to maintain a supply of Bitcoin units?

Jean Nichols

Author

 


Bitcoin is a virtual currency, so the process of creating Bitcoin units is also virtual. Government authorities and other financial bodies are responsible for creating and regulating fiat currencies and since Bitcoin is politically independent and there are no organizations and government authorities in the complex, maintaining Bitcoin supply is also politically independent.

Bitcoin is a famous cryptocurrency having robust features such as anonymity, lesser transaction fees, flexible transactions, and much more. However, most people only know Bitcoin because of its high store value and profit potential.

Some of the profitable jobs in terms of Bitcoin include Bitcoin trading and investing in Bitcoin. You can make a considerable amount of money in your Bitcoin trading venture; online trading software might be helpful for you. Bitcoin mining is the progression that maintains the supply of Bitcoin units.

Let’s find out if Bitcoin mining is the mere action to maintain a supply of Bitcoin units.

Bitcoin

Is Bitcoin mining the only way to maintain a supply of Bitcoin units? Source: pexels.com

Acquiring hold of Bitcoin units

Bear in mind that there is a vast difference between acquiring the hold of Bitcoin units and generating new Bitcoin units. You can acquire the hold of Bitcoin units with two possible methods. Foremost is buying Bitcoin from a trustable exchange, and the second is Bitcoin mining.

If you want to acquire a precise number of Bitcoin units, a Bitcoin exchange is suitable. Bitcoin mining is an expensive process, and you need to invest resources in Bitcoin mining before starting your journey. Buying Bitcoin from a trustable exchange is exceedingly easy; you have to follow few steps to start your Bitcoin mining venture.

Choose a trustable exchange – There are ample trustable exchanges present on the web. However, only a few of these are worth investing resources in. The trustable exchange allows you to buy, sell and trade Bitcoin units with other currencies.  There are two types of trustable exchange; the foremost is decentralized, and the second is centralized. You can choose any of the exchange types. Make sure the exchange you are about to choose offers you complete security and transparency.

Know Your Customer – KYC is one of the essential parts of the trustable exchange. A centralized exchange process is a verification process that requires your government-approved identity and your photograph. Therefore, KYC consumes a great deal of time in the centralized exchange, whereas KYC consumes a little time in a politically independent exchange.

Connect Payment and Buy! – After the competition of the KYC process, you need to connect a payment source and buy the foremost bitcoin. Ensure that the Bitcoin exchange you are about to choose offers you trusted payment methods such as bank account, credit card, and debit. You should always consider buying Bitcoin units with the help of this payment method and avoid using any other lucrative payment method for cash backs.

Is Bitcoin mining the only method to generate new Bitcoin units?

Bitcoin mining is the mere method to generate new Bitcoin units. You are familiar with that Bitcoin miners have to verify the transactions to avail the block reward. In a nutshell, Bitcoin miners avail themselves of the Bitcoin units as a reward for verifying the transactions. To verify the transactions, Bitcoin miners have to solve or decode challenging math puzzles in 10 minutes.

More proof of work demonstrates that the Bitcoin miner who will solve math puzzles earlier than another miner will benefit from the block reward. Bitcoin mining block reward at the instance is 6.25 Bitcoin units with the transaction cost. However, the block reward of Bitcoin mining was not always 6.25 Bitcoin units. The block reward of Bitcoin mining was 50 Bitcoin units at the first instance alongside the transaction cost.

Bitcoin halving is the event that declines the block reward of Bitcoin mining roughly every four years. The first Bitcoin halving took place in 2012, and the block reward of Bitcoin mining was 25 units after the first-ever Bitcoin halving. After the second Bitcoin halving, the Bitcoin mining block reward was 12.5 units.

In a nutshell, Bitcoin mining is the mere method to avail Bitcoin mining to generate new Bitcoin units. Trustable exchange only helps in buying the Bitcoin units which are already present in the marketplace.

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