Bitcoin Exchange - Bitcoin Exchange Rate - Video [WEE5-OyNfHR]
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Unlike fiat currency, bitcoin has no centralized issuing authority.[57][58][59] The network is programmed to increase the money supply as a geometric series until the total number of bitcoins reaches 21 million BTC, by issuing them to nodes that verify transaction records through intense bruteforce hashing with computing power.[3] These nodes can then sell their earned bitcoins on exchanges or trade them at their discretion.
Currently, 25 bitcoins are generated every 10 minutes. This will be halved to 12.5 BTC within the year 2017 and halved continuously every 4 years after until a hard-limit of 21 million bitcoins is reached within the year 2140.[1][9] As of March 2013 over 10.5 million of the total 21 million BTC had been created; the current total number created is available online.[60] In November 2012, half of the total supply was generated, and by end of 2016, three-quarters will have been generated. By 2140, all bitcoins will have been generated with the last one consisting of fractional parts.
To ensure this granularity of the money supply, clients can divide each BTC unit down to eight decimal places (a total of 2.1 × 1015 or 2.1 quadrillion units).[61]
Exchange
Through various exchanges, bitcoins are bought and sold at a variable price against the value of other currency. Bitcoin has appreciated rapidly in relation to existing fiat currencies including the US dollar, euro and British pound.[citation needed]
In April 2013, 1 BTC traded from $100--$260. Taking into account the total number of bitcoins mined, the monetary base of the bitcoin network stands at over $1 billion USD.[62][63]
According to Reuters, undisclosed documents indicate that banks such as Morgan Stanley and Goldman Sachs have visited bitcoin exchanges as often as 30 times a day. Employees of international banks and major financial organizations have shown interest in the bitcoin markets as well.[64]
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