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Why do people want Bitcoin (Why is Bitcoin being mined)?

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Why do people want Bitcoin? According to CCN, there are three reasons: First, t

Why do people want Bitcoin (Why is Bitcoin being mined)?

Why do people want Bitcoin? According to CCN, there are three reasons: First, the Bitcoin supply is decreasing. Since Bitcoin is an open-source software, anyone can participate in mining on the network. In the early days, people hoped to acquire more tokens in exchange for other assets. As more and more developers start using cryptocurrencies as a means of payment and store of value, this may increase the demand for Bitcoin (although not yet). The second factor may be that people are unwilling to hold Bitcoin because they perceive no investment opportunities or the ability to purchase it. The third aspect is that many projects seek to utilize Bitcoin to provide funding support for their customers, but the success of these projects depends on their own communities. The fourth question is, if people really need a digital currency, there is still controversy as to whether its price can stabilize.

Why is Bitcoin being mined?

According to CCN, Bitcoin mining is actually “decentralized”. Why does this have an impact? It’s because in the past few decades (around five years), over 500 million blocks have been mined from all over the world, but due to reasons such as network insecurity, inefficiency, and massive energy consumption, these blocks have been wasted.According to a recent report from the Cambridge Centre for Alternative Finance at the University of Cambridge, about $1.5 billion per year comes from the mining industry and personal income, including miners. Therefore, they can use these resources as transaction fees or provide funding for their operations to sustain economic activity, leading to an increase in the price of Bitcoin, but without generating any profits.When we use a system to store and transfer digital currency, we should first remember two fundamental concepts: proof of work mechanism. This process is achieved through hashing algorithms and verifies the ability of each participant to perform work on a specific event. If such a situation occurs, it may indicate the following signals: 1. Blockchain technology enables users to have full control over their own data; 2. Information validity can be verified without relying on third parties.

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